August 12, 2010 / 10:38 PM / 7 years ago

UPDATE 1-Toromont Industries Q2 profit falls on higher costs

* Says H2 profit may be similar to yr ago

* Q2 EPS C$0.28 vs C$0.51 last yr

* Revenue up 23 pct

* Raises dividend by 7 pct

Aug 12 (Reuters) - Canadian industrial equipment supplier Toromont Industries Ltd (TIH.TO) posted a 35 percent drop in quarterly profit due to higher costs related to an acquisition and said net income for the second half might be in line with last year.

The company, which sells, rents and services a broad range of Caterpillar (CAT.N) heavy construction and industrial equipment, raised its quarterly dividend by 7 percent to 16 Canadian cents a share.

For the second quarter, Toromont earned C$21.8 million ($20.84 million), or 28 Canadian cents a share, compared with C$33.5 million, or 51 Canadian cents a share, a year ago.

Revenue rose 23 percent to C$594.2 million as Toromont gained from higher activity levels and the acquisition of compression systems maker Enerflex Systems Income Fund in January.

Analysts on average expected the company to earn 25 Canadian cents a share, on revenue of C$520.5 million, according to Thomson Reuters I/B/E/S.

Shares of the company closed at C$24.99 Thursday on the Toronto Stock Exchange. They have shed 19 percent of their value since touching a 52-week high in March. ($1=1.046 Canadian Dollar) (Reporting by Gowri Jayakumar in Bangalore; Editing by Vinu Pilakkott)

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