Toromont Industries has reported a slight drop in year-over-year revenue to start 2024 due to overall market conditions settling towards normalized supply and demand dynamics, but notes that bookings and backlog remain strong across the business.
Overall revenue for the quarter ending March 31, 2024 was down $30 million, or 3 percent, to $1.0 billion. Operating income slid 17 percent in the quarter; Toromont reported operating income at 10.5 percent of revenue, compared to 12.2 percent in the same period of 2023. Decrease in operating income reflects lower revenue, higher relative expenses, and lower gross margins. Net earnings dropped $12.1 billion, or 13 percent, to $83.9 million.
Overall bookings in the quarter were up 62 percent compared to the similar period last year.
The Equipment Group saw revenue decline by 3 percent, or $32.3 million, to $928.1 million for the quarter. New equipment sales slid 11 percent against a stronger comparable 2023, coupled with delays in customer delivery schedules and buying decisions. Rental revenue was down in part due to adverse weather conditions, the company reported. Parts and service were both strong.
Bookings for 2024 were $521.6 million, an increase of 51 percent compared to the prior year, thanks to strong order intake in construction and mining. Backlog at the end of March 2024 was $1.1 billion, up 15 percent.
"Results for the first quarter of 2024 are reflective of the evolution toward more normalized supply and demand dynamics when compared to the market factors we experienced last year," stated Michael S. McMillan, President and Chief Executive Officer of Toromont Industries Ltd. "Overall we saw a decline in revenues year over year, however, activity levels remain solid with healthy bookings and backlog across the business. The Equipment Group executed well given market dynamics and customer demand priorities. CIMCO revenue and bottom line improved for the year on good execution and higher product support activity. Across the organization, we continue to focus on our long-term investment strategies and remain committed to our operating disciplines, driving our after-market strategies and delivering customer solutions."
