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Bookings in 2012 totalled $614 million, down 3% from 2011. Lower prime and back-up power systems bookings accounted for approximately half of the decrease year-over-year.
Backlogs were higher in 2011 due to a significant mining order that was delivered as scheduled prior to the end of 2012. At December 31, 2012 approximately 30% of the backlog was comprised of mining orders (60% at December 31, 2011) while 34% were power systems projects. Substantially all backlog is expected to be delivered in 2013. Shortened delivery windows due to process improvements and increased capacity at Caterpillar have also contributed to reduced backlogs.
CIMCO
Twelve months ended December 31($ thousands) 2012 2011 $ change % change----------------------------------------------------------------------------Package sales $113,586 $103,925 $ 9,661 9%Product support 83,693 81,662 2,031 2%----------------------------------------------------------------------------Total revenues $197,279 $185,587 $ 11,692 6%--------------------------------------------------------------------------------------------------------------------------------------------------------Operating income $ 14,257 $ 13,871 $ 386 3%--------------------------------------------------------------------------------------------------------------------------------------------------------Capital expenditures $ 1,440 $ 590 $ 850 144%--------------------------------------------------------------------------------------------------------------------------------------------------------Key ratios:Product support revenues as a % of total revenues 42.4% 44.0%Group total revenues as a % of consolidated revenues 13.1% 13.4%Operating income as a % of revenues 7.2% 7.5%
CIMCO reported record results for the year on growth in industrial activity.
Package revenues were up as increased industrial revenues more than compensated for declines in recreational activities. Industrial revenues in Canada were strong, up 62%, with a number of jobs progressing including the previously announced Maple Leaf transformation projects. Recreational revenues in Canada were down 45% from last year, as anticipated, due to the wind-up of a Canadian federal stimulus program. US package activities in both recreational and industrial were lower year-over-year by 20%. US bookings in the fourth quarter and backlog at year-end were strong.
Product support revenues were up as activity in the US increased 12% while Canadian markets were steady year-over-year.
Operating income increased reflecting higher revenues and lower expense levels, partially offset by lower margins. Gross margins were down 80 basis points on lower average quoted margins, while execution remained favourable. Selling and administrative expenses increased 3%.
Capital expenditures totalled $1.4 million in 2012. Capital investment was directed largely at service vehicles to support higher volumes, information technology assets and branch renovations.
($ millions) 2012 2011 $ change % change----------------------------------------------------------------------------Bookings - year ended December 31 $ 162 $ 91 $ 71 78%Backlogs - as at December 31 $ 99 $ 51 $ 48 94%
