Good activity in construction markets has boosted rental revenue growth at Canadian company Toromont, which owns several large Caterpillar dealerships.
The company’s equipment division reported rental revenues of CA$1.01 billion €643 million for 2015 - up 4% year-on-year. Total equipment revenues, including sales, were up 8% compared to 2014 to CA$1.57 billion (€1 billion).
Operating income at the division grew 10% to CA$190 million (€121 million). Toromont reported good activity levels in construction markets for the year.
The company also saw capital expenditure in its rental fleet jump 47% year-on-year to CA$120 million (€76 million) for 2015.
“In the Equipment group, the parts and service business has experienced significant growth driven by the larger installed base of equipment in the field, which provides a measure of stability,” the company said.
“Service shops remain busy and the company continues to hire technicians to address the increased demand. Broader product lines, investment in rental, the expanded agricultural businesses and developing product support technologies supporting remote diagnostics and telemetrics will also contribute to future growth.
“The Federal government's commitment to significantly increase infrastructure spending bodes well for long-term prospects. Heightened competitive conditions, a tight pricing environment, stagnant economic growth and the weaker Canadian dollar are expected to continue to weigh on prospects in 2016. The Company continued to invest in growing its rental fleets and in increasing utilisation rates.”