Finning Posts 16-Percent First-Quarter Revenue Hike

May 9, 2012
Finning International, the world’s largest Caterpillar and leading rental company, posted a 16-percent year-over-year revenue increase in the first quarter, with $1.5 billion in revenue as market conditions remained robust in all regions and product support revenues reached a new record.

Finning International, the world’s largest Caterpillar and leading rental company, posted a 16-percent year-over-year revenue increase in the first quarter, with $1.5 billion in revenue as market conditions remained robust in all regions and product support revenues reached a new record. EBIT margin was 6.7 percent compared to 8.4 percent in Q111, and 5.9 percent in the fourth quarter.

Equipment rental for the company increased 16 percent in the first quarter, to $91.2 million, compared with $78.3 million a year ago.

Stronger results from South America and the U.K. and Ireland were offset by a lower EBIT margin in Canada compared to a year ago. Order intake was strong and the backlog grew by 11 percent from the end of December to $1.6 billion.

“Strong prevailing market conditions across our regions are reflected in our excellent start to the year and provide a solid platform for growth throughout 2012,” said Mike Waites, president and CEO of Finning International. “With the acquisition of the former Bucyrus distribution business just completed in Finning South America and the U.K. and Ireland, we are already seizing sales and service opportunities related to our expanded product portfolio.

“This year we are relentlessly focused on realizing improved profitability in Canada, successfully integrating the former Bucyrus business and strengthening the balance sheet. I am excited about a bright future ahead as Finning stands poised to capitalize on our company’s vast growth opportunities in 2012 and beyond.”

In Canada, first-quarter revenues rose 27 percent, driven by new equipment sales, which increased 55 percent compared with the same period a year ago, and were strong across most sectors. Product support revenues increased 10 percent year over year.

Finning, based in Vancouver, B.C., Canada, is No. 9 on the RER 100. Finning is the Caterpillar dealer for Western Canada, Argentina, Uruguay, Chile, Bolivia, the U.K. and Ireland.