Toromont releases Q2 2015 results
By Andrew Macklin
July 29, 2015 – Toromont is in the midst of a solid year in 2015, as second quarter financial results show a strong increase in revenues.
“In a relatively competitive market environment, we delivered strong results in the second quarter,” said Scott J. Medhurst, president and chief executive officer of Toromont Industries Ltd. “The Equipment Group experienced an active construction market combined with very strong product support growth.”
Equipment Group revenues increased 16 per cent to $427.6 million in the second quarter on strong equipment sales, product support and rentals.
Operating income increased 27 per cent compared to last year, reflecting the higher revenues and relative contribution from product support. Equipment Group revenues were up 15per cent to $724.2 million year-to-date mainly on higher equipment sales and product support revenues. Equipment sales were up $45.0 million or 14 per cent largely due to good construction, power systems and agriculture deliveries, offset by reduced mining sales. Product support revenues increased to a new high for the first six months of the year on strong parts and services growth.
Equipment Group backlogs were $180.0 million at June 30, 2015 compared to $102.0 million at December 31, 2014 and $185.0 million (including one $43.0 million order delivered in Q3 2014) at this time last year. Substantially all of the backlog is expected to be delivered this year. Bookings increased eight percent in the quarter to $274.0 million and nine per cent year-to-date to $438.0 million against strong levels in the prior year.
“In the Equipment Group, construction activity has been healthy and the roster of projects is expected to continue. However, heightened competitive conditions, a tight pricing environment, challenges within the mining industry, stagnant economic growth and a weaker Canadian dollar are all expected to impact customers,” said Medhurst.