July 21, 2009 / 4:40 PM / 9 years ago

UPDATE 1-Toromont profit falls 11 percent, revenue slumps

* EPS of C$0.51, versus C$0.58 a year ago

* Revenue down 10 percent

* Shares up 2.4 percent on the TSX

* Says bookings and backlogs were down in the quarter

TORONTO, July 21 (Reuters) -Canada’s Toromont Industries (TIH.TO) said on Tuesday quarterly profit and revenue dropped from a year earlier, when a one-time gain from investment sales flattered the industrial equipment supplier’s results.

But earnings for the latest quarter topped analysts’ expectations and the stock rose more than 2 percent.

Profit fell to 11 percent to C$33.5 million ($30.5 million), or 51 Canadian cents a share, for the three months ended June 30, down from C$37.8 million, or 58 Canadian cents, a year earlier.

Results from the year earlier included a gain of 7 Canadian cents on the sale of investments.

Analysts, on average, had expected earnings of 48 Canadian cents a share in the latest quarter, before items, according to Reuters Estimates.

Revenue dropped 10 percent to C$484.2 million on lower new and used machine sales, and it fell short of a consensus estimate of C$541.06 million.

Shares in the Concord, Ontario-based company, which sells, rents and services a broad range of Caterpillar heavy construction and industrial equipment, and makes and installs compression systems, were up 54 Canadian cents at C$23.54 on the Toronto Stock Exchange after the results were released.

“Good project management coupled with effective expense control resulted in comparable operating income to last year on a 10 percent reduction in revenue,” Robert Ogilvie, chief executive of Toromont said in a release.

Booking activity in the company’s compression group was down 67 percent compared with a year earlier on lower demand for natural gas compression in the U.S. and Canada. Backlogs were down 33 percent from Dec. 31.

Equipment Group bookings fell 31 percent from the year earlier period. Backlogs for the group at 9 percent lower than at Dec. 31. ($1=$1.10 Canadian) (Reporting by John McCrank; Editing by Frank McGurty)

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