Rental revenues rise at Toromont
By Helen Wright12 February 2015
Full-year 2014 results at Canada-based Toromont’s Equipment Group division have risen, buoyed by strong rental market activity.
Toromont, which owns several large Caterpillar dealerships, reported Equipment Group revenues of CA$1.45 billion (€1.02 billion) for the 12 months to 31 December, 2014, up 6% year-on-year.
Of this, rental revenues grew 14% to CA$220 million (€154 million), while revenues from used equipment sales were up 20% to CA$186 million (€131 million).
The company said revenues from rentals and product support surpassed records set in 2013, reflecting strong market activity coupled with solid operational execution.
Toromont also reported improved utilisation and an expanded rental fleet – it invested CA$52 million (€36 million), net of disposals, in 2014.
It said light equipment rentals increased 10%, heavy equipment 19% and power systems rentals 65% over 2013. Rental rates were fairly consistent in both years, according to the company.
Toromont president and CEO Scott Medhurst said, “Our Equipment Group demonstrated continued strength in product support, rental and equipment sales, especially in construction markets.”
Looking ahead, the company said competitive pressure in the equipment market was set to continue. It said the weaker Canadian dollar would further challenge end markets as resultant price adjustments impact overall purchasing power.
However, it said large infrastructure investment was expected to continue in the longer term.