Rental growth at Toromont

Nine-month results at Canadian company Toromont’s Equipment Group division have increased, with strong momentum in rental.

Toromont, which owns several large Caterpillar dealerships, said Equipment Group revenues were up 3% to CA$1 billion (€702 million) for the three quarters to 30 September, fuelled by increased used equipment sales, product support and rentals.

It said rental revenues jumped 13% year-on-year to CA$157 million (€110 million), while product support revenues grew 10% to CA$339 million (€238 million). Operating income increased 2% on the higher revenues.

Toromont president and CEO Scott Medhurst said Equipment Group markets continued to be reasonably strong, albeit competitive.

"In the Equipment Group, heightened competitive conditions across all industries we serve, together with the weaker Canadian dollar, have suppressed gross profit margins.

"Product support growth is expected to continue with the substantially increased base of equipment within our territory. Rental revenue growth is expected to continue in light of good demand, supported by our investment in the rental fleet," he said.