Toronto, Ontario-based Toromont Industries Ltd. last week reported financial results for the third quarter of 2006. Revenues and net earnings were higher compared to the same period of 2005. Net earnings were U.S. $22.9 million or 36 cents per share, up 5 percent from $21.8 million or 34 cents per share reported in the third quarter of 2005, which was also very strong. For the first nine months of 2006, net earnings were $55.2 million or 86 cents per share, up 21 percent from $45.6 million, or 72 cents per share in the comparable period of 2005.
"In the first half of the year we saw strong growth in both operating groups,” said Robert Ogilvie, chairman and CEO of Toromont. “In the third quarter, growth moderated as a result of lower natural gas and other commodity prices, and softening residential construction in Ontario."
Rental revenues in the third quarter were $35.4 million, a 5-percent increase from $33.7 million in the year-ago period. For the first nine months of 2006, rental revenues were $85.7 million, an 8-percent increase from $79.4 million for the same period in 2005, due largely to increased same-store revenues generated from a larger rental fleet. The 2006 opening of two new Battlefield - The CAT Rental Store branches in Barrie and Waterloo, Ontario also contributed to this growth.
In the Equipment Group revenues were up 7 percent in the quarter on strong sales of new tractors to $218.8 million, from $204.0 million a year ago.
Revenues in the Compression Group were up 6 percent in the quarter to $183.7 million from $173.7 million in 2005.
The expansion of facilities in Houston is substantially complete and construction in Casper, Wyo., should be completed in early 2007. Approximately 40,000 square feet is being added to each location to double their production capacities.
Toromont Industries Ltd. operates through two business segments: The Equipment Group and the Compression Group. The Equipment Group includes one of the world's largest Caterpillar dealerships by revenue and geographic territory in addition to its rental operations, Battlefield Equipment Rentals.
Based in Stoney Creek, Ontario, Battlefield is No. 23 on the RER 100.
