Heavy Equipment Guide Logo

This ad will close in 15 seconds

Equipment sales push Toromont earnings for Q3

0149/37159_en_05557_39663_toromont-q3-2018-results.jpg

Company info

3131 Highway 7 West P.O. Box 5511
Concord, ON
CA, L4K 1B7

Website:
toromont.com

Read more

Toromont Industries Ltd. has reported its financial results for the third quarter ended September 30, 2018. These results include the operations of the significant acquisition completed by the Company on October 27, 2017. This transaction expanded Toromont's operations to include the Caterpillar dealerships for Quebec, the Maritime Provinces and Western Labrador and the MCFA lift truck dealership for Quebec and Ontario, in addition to other distribution rights. The acquired operations are collectively referenced as "Toromont QM or TQM" throughout this report.

"We have considerable work to complete to unlock the significant value of the TQM acquisition, but remain pleased with the integration and transition progress and with the earnings accretion over the relatively short timeline since the transaction closing. The team has embraced the sharing of best practices including key operational and financial disciplines, to further strengthen our position as a world class dealership," said Scott J. Medhurst, President and Chief Executive Officer of Toromont Industries Ltd. "Overall, the Company delivered good results in the third quarter on solid execution in the legacy Equipment Group together with the incremental contribution from the acquired businesses."

Net earnings increased $19.3 million or 39% in the quarter versus a year ago to $68.7 million or $0.84 EPS. Earnings in the legacy Toromont businesses ("Legacy Toromont") increased 7% in the quarter versus a year ago on solid growth in the Equipment Group, partially offset by weaker results at CIMCO. Toromont QM contributed $18.8 million and achieved improved profitability versus a year ago in the predecessor organization. Integration-related costs included severance and other one-time-only costs and combined with interest expense on the acquisition financing were $4.2 million in the quarter versus $1.3 million a year ago. Due to increases in Toromont's share price, significant increases in the mark-to-market adjustments related to Deferred Share Units ("DSUs") were experienced in all periods. These increased expenses by $3.6 million in the third quarter and $4.4 million for the first nine months of 2018, and $4.0 million and $6.1 million for the comparable periods of 2017.

On a year-to-date basis, net earnings increased $50.3 million or 43% to $167.1 million or $2.06 EPS. Legacy Toromont earnings increased 18% with EPS closely tracking the increase at 17%.

"Infrastructure projects and broader construction activity, continue to present opportunities for Toromont's Equipment Group. Opportunities exist for equipment supply into the mining sector, for new mines planned and in support of the replacement and expansion requirements at existing mine sites," continued Mr. Medhurst. "We're now one year into our ownership of TQM and our senior leadership team remains focused on the integration and expansion of the exciting opportunity. Success presents a substantial long-term growth opportunity for Toromont, so appropriately, we are taking a methodical approach to each element of the integration. CIMCO continues to grow its revenue base, reflecting its strong presence and solid reputation as a leader in the key markets it serves. The tariff increases and global trade disputes seen this year have not had a direct material impact on our business."

More from Industry News

Subscribe to our free newsletter

Get our newsletter

Learn more

Superior appoints Belterra to distribution role in Quebec

Superior Industries, Inc., the U.S. based manufacturer and global supplier of bulk material processing and handling systems, has announced a new partnership with Canada's largest distributor of conveyor belting, components and other bulk material handling solutions. Belterra, a 50-year-old distributor with 19 locations throughout the country, will stock, sell and service Superior's conveyor idlers, pulleys, scrapers and accessories in Quebec. 

Minnich Manufacturing selected as vendor partner of Associated Construction Distributors International, Inc. (ACDI)

Minnich Manufacturing has been selected as a vendor partner of Associated Construction Distributors International, Inc. (ACDI). ACDI is a co-operative association of independently owned and locally operated distributors of specialty construction products and equipment. The organization offers members information on business and industry trends, training, fellowship, manufacturer-ready access for products, and more. ACDI distributors account for more than $1 billion in the sale of materials and equipment to the construction industry.

Terex AWP celebrates milestone in production

Within two months, Terex Aerial Work Platforms (AWP) Changzhou plant will celebrate the production of the 1,000th Genie GS-1330m scissor lift, introduced globally in early 2019, manufactured in the factory. This milestone is a testament to the great success of the facility's production capabilities in China and shows the brand's capacity to ramp-up production to meet high global demand for this product.

Subscribe to our free magazine

Get Our Magazine

Paper or Digital delivered monthly to you

Subscribe or Renew Learn more

Tadano acquisition of Demag Mobile Cranes ushers in new era

Tadano Ltd. completed its $215 million acquisition of the Demag Mobile Cranes business on August 1. The transaction brings together two of the top names in the lifting equipment industry - each well known for safety, quality, innovation, and performance. The Tadano and Demag brands now leverage a long combined history of manufacturing and lifting experience. Working together, we will push forward, innovate, and contribute to the success of our customers worldwide.

Takeuchi introduces Jeremy Lindsay as Regional Manager for Alaska and Canada

Takeuchi-US has hired Jeremy Lindsay to fill the regional manager position, effective immediately. In this role, he will be responsible for all sales development and activity within Alaska and Canada. His additional responsibilities include visiting assigned dealers throughout the region to oversee company business and assets while strengthening dealer relationships.  

JCB apprentices win SkillsUSA national competition

Two JCB apprentices won first place in the mechatronics division at the recent SkillsUSA national championships. Anthony Smith and Victor De La Cruz were tested in practical skills in pneumatic technology, electrical systems, mechanical systems and general automation techniques. Smith and De La Cruz now have the opportunity to compete in the WorldSkills championships held in Shanghai in the Fall of 2021.

Alliance Parts expands offering of products, retail locations to create one-stop solution for Daimler customers

With the recent addition of new retail locations and more value-based parts to its portfolio, Alliance Parts is fulfilling Daimler Trucks North America (DTNA)'s vision of a one-stop solution, to provide exceptional customer experiences and parts to customers when and where they need them. The growing parts portfolio, increasing retail footprint and ability to deliver parts in 24 hours or less will benefit customer uptime.

Manitowoc launches apprenticeship program to help certify welders in Pennsylvania

Manitowoc is launching a new apprenticeship program to help certify welders in Pennsylvania. This new program follows recent approval from the state of Pennsylvania Department of Labor. The company expects to have the program up and running in August of this year. The move reflects the company's commitment to further building the U.S. skilled workforce. 

Subscribe to our free newsletter

Get our newsletter

Learn more

Equipment Source Inc. is JCB's new dealer in Alaska

Equipment Source Inc. (ESI) JCB is the newest addition to the growing JCB dealer network in North America. The new JCB dealer sells and services a full range of JCB construction machines – including excavators, skid-steer and compact track loaders, and telehandlers – from locations in Anchorage and Fairbanks. 

Volvo Group and Samsung SDI to develop battery packs for electric trucks

Volvo Group and Samsung SDI have entered into a strategic alliance to develop battery packs for Volvo Group's electric trucks. Working together with Samsung SDI, Volvo Group aims to accelerate the speed of development and strengthen the long-term capabilities and assets within electromobility, to the benefit of customers in different truck segments and markets.

Serious Labs developing VR training modules for IPAF PAL+ Advanced Operator Certification

At the International Powered Access Federation (IPAF) INNOVATE event in Chicago , Edmonton-based Serious Labs, a leader in virtual reality (VR) solutions for training and operations of heavy equipment such as cranes and aerial boom lifts, announced it is working in conjunction with IPAF to develop PAL+ VR training modules. PAL+ training, which can be completed for the first time on a VR simulator, tests existing Powered Access Licensed-Registration (PAL) Card holders at a more advanced level than required for the PAL Card operator license. Completion of the course will also renew a PAL Card holder's license for another five years. IPAF's PAL Cards are recognized worldwide as proof of the highest standard in Mobile Elevated Work Platform (MEWP) operator training.

Subscribe to our free magazine

Get Our Magazine

Paper or Digital delivered monthly to you

Subscribe or Renew Learn more