Toromont Industries Ltd. has unveiled its financial performance for the third quarter ending September 30, 2024. The company reported a 14% surge in revenue, reaching $1.34 billion, compared to the same period last year. This growth is attributed to a strong backlog and rising activity levels across most markets, despite challenging market dynamics. The Equipment Group contributed significantly, with a 14% increase in revenue, driven by robust new equipment sales. CIMCO also saw a notable 17% rise in revenue, primarily due to solid project execution. However, operating income decreased by 9% for the quarter, reflecting lower gross margins and higher expenses.
This decline was attributed to a less favorable sales mix and market conditions that reduced Equipment Group gross profit margins. For the nine months ending September 30, 2024, revenue rose by 9% to $3.7 billion. Despite these increases, net earnings from continuing operations fell by 10% to $131 million, with an EPS of $1.60. The year-to-date EPS was $4.27, marking a 6% decline. Order bookings rose 4% in the quarter and 11% year-to-date, while backlog stood at $1.1 billion, slightly down from the previous year. The Equipment Group saw a 14% revenue increase to $1.2 billion, fueled by new equipment deliveries in mining and construction, along with recovering rental revenues.
However, operating income for the Equipment Group fell by 12% due to lower margins and increased expenses. CIMCO's revenue rose by 17% compared to the previous year, largely driven by a significant increase in package revenue, although product support revenue dipped slightly. The company's financial position was bolstered by the acquisition of Tri-City Equipment Rentals, enhancing the heavy equipment rental operations. Toromont also repurchased and canceled shares under its Normal Course Issuer Bid program, reflecting its strong cash flow. A dividend of $0.48 per share was declared, payable on January 6, 2025. Toromont's return on equity was 19.4% for the trailing twelve months.
The company reinforced its commitment to long-term investment strategies and enhancing customer service. Recent appointments to the Board of Directors aim to bolster the company's strategic capabilities. Forward-looking statements suggest continued optimism with plans to maintain financial discipline and leverage strengths in both equipment sales and maintenance services.
