February 4, 2008 / 5:59 PM / 10 years ago

Toromont profit boosted by equipment sales

TORONTO (Reuters) - Industrial equipment supplier Toromont Industries (TIH.TO) said on Monday its earnings rose in the fourth quarter, helped by record mobile equipment sales and rentals.

The company said it earned C$39.3. million, or 61 Canadian cents a share, in the three months ended December 31, compared with C$36.9 million, or 58 Canadian cents a share, in the same period the year before.

Toromont, which supplies Caterpillar (CAT.N) heavy equipment and specialty equipment, said revenue was C$540.7 million, up 9 percent from the year before.

Analysts on average had been expecting revenue of C$530 million, according to Reuters data.

The Concord, Ontario-based company said revenue grew on the back of a 17 percent growth in new machine and engine sales, as well as a 14 percent increase in rentals.

Despite the prospect of a slowdown in the U.S. economy, Toromont said that the outlook for its equipment group segment remains “favorable.”

“We are well positioned in each of our markets and we believe that over the longer term, our existing businesses can achieve average annual revenue growth of 10 percent, with increasing profitability,” said Chief Executive Robert Ogilvie in a statement.

Shares of Toromont rose 49 Canadian cents, or 1.8 percent, to C$28.24 before being halted on the Toronto Stock Exchange.

($1=$0.99 Canadian)

Reporting by Leah Schnurr; Editing by Peter Galloway

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