UPDATE 1-Toromont profit falls, sees 2010 market weakness

* Q1 EPS C$0.21 versus C$0.37 a year ago

* Analysts forecast EPS C$0.25

* Revenue down 4 percent at C$440.7 mln

TORONTO, May 14 (BestGrowthStock) – Industrial equipment supplier
Toromont Industries (TIH.TO: ) said on Friday its quarterly
profit fell 35 percent in a soft market and that it does not
expect any meaningful recovery in its businesses this year.

The company, which sells, rents and services a broad range
of Caterpillar (CAT.N: ) heavy construction and industrial
equipment, and makes and installs compression systems, said it
does not expect its 2010 profits to be as high as they were in
2009.

“General economic conditions in the markets we serve
continued to be slow,” Robert Ogilvie, chief executive of
Toromont, said of the company’s first quarter results.

He said the results were also hurt by costs associated with
Toromont’s C$670 million takeover of Enerflex Systems Income
Fund (EFXFF.PK: ) in January.

The company said Enerflex, which adds to Toromont’s
compression business in the natural gas sector, should add to
earnings in 2011.

Concord, Ontario-based Toromont said its profit fell to
C$18.6 million ($18.1 million), or 21 Canadian cents a share,
for the quarter ended March 31. That was down from C$23.7
million, or 37 Canadian cents a share, a year earlier.

Analysts, on average, had expected earnings of 25 Canadian
cents a share, according to Thomson Reuters I/B/E/S.

Toromont said the Enerflex deal led to a C$19.4 million
jump in selling and administrative expenses. Transaction and
restructuring costs added another C$5.5 million, interest costs
related to the transaction financing rose by C$3.8 million, and
other related costs came to C$2.2 million.

Earnings also included an C$18.6 million gain on units of
Enerflex held by Toromont before the deal.

Revenue dropped 4 percent to C$440.7 million, reflecting
weaker economic conditions and a 19 percent increase in the
Canadian dollar over the past year, which cut C$19 million from
revenues.

Toromont shares were down 81 Canadian cents at C$28.84 on
the Toronto Stock Exchange on Friday afternoon after the
results were released.

Stock Market News

($1=$1.03 Canadian)
(Reporting by John McCrank; editing by Peter Galloway)

UPDATE 1-Toromont profit falls, sees 2010 market weakness