Higher equipment sales buoy Toromont to increased revenue through third quarter
Higher sales in a variety of segments have boosted Toromont Industries to a profitable third quarter of 2023, as well as driving the company towards a solid year of growth.
Overall revenue in the three months ending September 30, 2023, was $1.174 billion, an 8 percent increase from the $1.086 billion earned in the same period of 2022. Toromont reported operating income of $193.1 million in the three-month period, up 17 percent, and net earnings of $145.6 million, an increase of 18 percent. Basic earnings per share in the third quarter were $1.77, up 18 percent.
"We are pleased with the operating and financial performance through the first nine months of the year," stated Michael S. McMillan, President and Chief Executive Officer of Toromont Industries Ltd. "The Equipment Group executed well, delivering against the opening order backlog in line with customer schedules and improvement in inventory flow, coupled with good growth in rental and product support activity, as well as a continued focus on expense control. CIMCO revenue and bottom line improved in the quarter on good execution and higher product support activity. Across the organization, we continue to navigate through uncertain economic conditions and remain committed to our operating disciplines, driving our after-market strategies and delivering customer solutions."
Through three quarters, Toromont reported revenue of $3.4 billion, an increase of $408.5 million, or 14 percent, over the same year-to-date for 2022.
The Equipment Group saw higher equipment sales, product support revenues, and rental activity in the period, pushing it to a 7 percent increase in revenue for the three months. It did report lower bookings during the quarter, down 10 percent, after a strong start to the year and given uncertain economic conditions. Backlog at September 30, 2023 was $1.2 billion, compared to $1.4 billion the previous year, reflecting good order intake, progress on construction and delivery schedules, as well as some improvement in equipment flow through the supply chain.