Re-openings set to lift Toromont

Article Excerpt

TOROMONT INDUSTRIES LTD. $74 remains a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 82.5 million; Market cap: $6.1 billion; Price-to-sales ratio: 1.7; Dividend yield: 1.7%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a range of industrial equipment, including Caterpillar machinery, in eastern Canada. It also makes refrigeration systems through its CIMCO business. The COVID-19 shutdowns slowed mining and construction activity in the three months ended June 30, 2020. That’s why revenue in the quarter fell 13.2%, to $849.6 million from $978.3 million a year earlier. Earnings also dropped, falling 34.7% to $0.62 a share from $0.95. The decline was partly due to higher provisions for loans to customers who may struggle to pay their bills. However, demand for Toromont’s products should rebound as the economy re-opens. Toromont is still a buy. buy…