Caterpillar equipmentScott Olson
Industrial equipment supplier Toromont Industries Ltd. said Monday its quarterly profit fell 36 per cent as the weak economy led to lower construction and natural gas drilling activity.
The Concord, Ont.-based company said its earnings fell to $31.4-million, or 48 cents a share, for the fourth quarter, ended Dec. 31. That was down from $49.1-million, or 76 cents a share, a year earlier.
Revenue dropped 26 per cent to $452.8-million.
Analysts, on average, had expected earnings of 49 cents a share, on revenue of $442.9-million, according to Thomson Reuters I/B/E/S.
The company sells, rents and services a broad range of Caterpillar Inc. heavy construction and industrial equipment, and makes and installs compression systems.
In January, Toromont completed its takeover bid for Enerflex Systems Income Fund. Toromont now owns about 96 per cent of the outstanding trust units of Enerflex and said last week it plans to acquire the rest on Feb. 26. The deal is worth about $670-million.
The company said it expects the acquisition to add to its earnings in 2011.