Toromont reports 8% increase in revenues for Q3
Toromont Industries, based in Ontario, Canada, is reporting a revenue increase of 8 percent in the third quarter and 18 percent year-to-date.
“We are pleased with our operating performance, financial results, cash generation and financial position through a challenging business environment,” says Scott J. Medhurst, president and CEO. “The Equipment Group reported strong prime product deliveries and excellent order bookings. Rental activity and fleet utilization improved with more favorable markets. Tight supply of equipment from manufacturers coupled with stronger sales activity versus last year have resulted in lower equipment inventories.”
The company’s Equipment Group saw revenues up $389.1 million to $2.7 billion year-to-date with similar trends as the quarter. Strong equipment sales drove growth, while product support and rental activity continues to increase as well.
Driven by mining and construction, bookings increased 45 percent to $539.9 million in the quarter and 85 percent to $1.9 billion year-to-date.
Production timing and tight supply of equipment from manufacturers is beginning to drag out delivery to end customers. Backlogs were at $903.5 million as of September, an increase of 253 percent from the same time in 2020, according to the company.
“Activity remained sound as demonstrated by new bookings and our current backlog levels, but production schedules and supply chains are challenged,” says Medhurst. “This has restricted availability and is likely to result in delivery date extensions. We continue to monitor cost pressures, supply-demand dynamics and potential distribution disruptions as the pandemic unfolds.”
Toromont Industries’ Equipment Group includes Caterpillar dealer locations for the Canadian provinces of Newfoundland & Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Québec, Ontario and Manitoba, in addition to most of the territory of Nunavut. The group also includes rental operations, an agricultural equipment operation and a material handling business. In addition to its Equipment Group, the company also designs and installs industrial and refrigeration systems through its CIMCO division.