July 22, 2008 / 3:41 PM / in 9 years

Toromont profit slips but revenue rises 15 percent

TORONTO (Reuters) - Industrial equipment supplier Toromont Industries (TIH.TO) said on Tuesday its quarterly profit slipped slightly, as strong growth from operations was offset by lower relative gains on investments.

The Concord, Ontario-based company said its second-quarter profit eased 0.8 percent to C$37.8 million, or 58 Canadian cents a diluted share, for the three months ended June 30, from C$38.1 million, or 58 Canadian cents, a year earlier.

Toromont, which supplies Caterpillar (CAT.N) heavy construction and industrial equipment, said revenue was C$536.5 million, up 15.3 percent from C$465.5 million.

Analysts, on average, had expected earnings of 45 Canadian cents a share on revenue of C$515.53 million, according to Reuters Estimates.

The higher revenue came on the back of strong machine unit sales, but was largely offset by weakness in other areas, including the impact of the stronger Canadian dollar, the company said.

Revenue from the company’s equipment group rose 6 percent on higher new machine sales. The compression group saw a 27 percent rise in revenue, benefiting from continued strength in U.S. natural gas compression, the company said.

Operating income rose to C$53.1 million from C$43.2 million.

Shares of Toromont were up 63 Canadian cents, or 2.3 percent, at C$28.19 on the Toronto Stock Exchange amid a broad-based selloff.

($1=$1.01 Canadian)

Reporting by Jennifer Kwan; editing by Rob Wilson

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