Toromont Industries Q2 Profit Flat Despite 16% Revenue Growth

(RTTNews) - Toromont Industries Ltd. (TIH.TO), a Canadian industrial equipment dealer and rental services company, reported flat second-quarter earnings despite higher revenue, primarily due to purchase commitment expenses associated with acquiring a larger stake in AVL Manufacturing Inc.

Net earnings was C$124.5 million, or C$1.53 per share, compared with C$124.3 million, or C$1.53 per share, a year earlier. Toromont recorded $54.3 million in purchase commitment expenses during the quarter.

Net earnings, excluding purchase commitment expenses, increased 42% to C$178.8 million or C$2.20 per share.

Operating income rose 41% to C$242.5 million from C$172.4 million a year earlier.

Revenue increased 16% to C$1.598 billion from C$1.377 billion in the prior-year quarter.

In Toronto, Toromont Industries shares closed down 0.66% at C$209.23 on Tuesday.