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Caterpillar equipment (Seth Perlman/AP)
Caterpillar equipment (Seth Perlman/AP)

Toromont posts higher profit as business picks up Add to ...

Caterpillar heavy equipment dealer Toromont Industries Ltd. reported higher second-quarter earnings and revenue Friday, as its customers recovered from the recession and bought more of its construction and industrial equipment.

The Toronto-based company said net earnings from continuing operations jumped to $23.7-million, or 30 cents per share, for the quarter ended June 30.

That compared with earnings of $17.9-million, or 23 cents per share, during the same period a year earlier.

Revenue increased to $344.6-million from $315.3-million in the second quarter of 2010.

With gains from sold-off operations in the mix, total net earnings were $159.7-million, or $2.07 per share, compared to $21.9-million, or 29 cents per share.

The discontinued operations included a gain on a disposition worth $133.2-million, or $1.73 per share.

“Our customers are continuing to recover from the recession,” chairman and chief executive officer Robert Ogilvie said in a release.

“Product support and rental activity were at record levels.”

“Second-quarter bookings were up 15 per cent, reflecting strength in mining, construction and road building industries. Backlogs were up 45 per cent over last year.”

Toromont’s equipment division includes a large Caterpillar machinery dealership, as well as rental operations. Its CIMCO division makes and installs refrigeration equipment for food, dairy, cold storage and other industrial applications, and for ice rinks and other recreational uses.

The company has 68 Caterpillar and Battlefield dealerships in Ontario, Manitoba, Newfoundland and areas of Labrador and Nunavut, and 26 CIMCO refrigeration equipment locations in Canada and the United States.

Last year it bought Enerflex Systems, a Calgary-based maker and installer of compression systems for natural gas, coal-bed methane and other energy uses.

Toromont spun off the company in June.

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