Both the parent and spinoff are buys

Article Excerpt

TOROMONT INDUSTRIES LTD. $27.71 (Toronto symbol TIH; TSINetwork Rating: Extra Risk) (416-667- 5511; www.toromont.com; Shares outstanding: 77.1 million; Market cap: $2.1 billion; Dividend yield: 2.2%) distributes a broad range of industrial equipment, including machinery made by Caterpillar Inc. It also makes refrigeration systems through its CIMCO division. The company completed the spinoff of Enerflex Ltd. (see right) in 2011. Shareholders received shares of both the new Toromont Industries and Enerflex. In the three months ended September 30, 2014, Toromont’s revenue fell 6.2%, to $467.4 million from $498.3 million a year earlier. Earnings declined 7.9%, to $40.0 million from $43.5 million. Per-share earnings fell 8.8%, to $0.52 from $0.57, on more shares outstanding. The lower results were mostly because the yearearlier quarter included Toromont’s biggest-ever mining order: an $82-million delivery to the Baffinland iron ore project. Steadily paying down debt Toromont’s financial position is strong: its $129.8 million of long-term debt—down from $150.3 million a year ago—represents just 6.2% of its…

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