Caterpillar dealer Finning’s fourth quarter revenues increased 3 percent to CDN $1.8 billion (about U.S. $1.6 billion), driven by higher parts and service revenues. Also full-year revenues jumped 3 percent to a record CDN $6.8 billion (about U.S. $6.1 billion).
Equipment rental increased 1 percent in the fourth quarter on a worldwide basis to $102.2 million. For the full year, worldwide equipment rental increased 3 percent to $391.9 million, compared to $379.8 million in 2012.
In the fourth quarter, EBIT was $145 million, compared to $148 million in the fourth quarter of 2012.
For the full year, product support revenues jumped 12 percent, partly attributed to the contribution from the mining shovels and drills business.
“Our Q4 results were in line with our expectations,” said Finning International CEO Scott Thomson. “Excluding one-time items, operating results improved year over year, as we grew our top line and improved EBIT performance in Canada. Importantly, we generated significant free cash flow, which enabled us to bring our net debt to invested capital ratio down to near the midpoint of our target range.
In Canada, fourth quarter revenues increased 11 percent year-over-year in the fourth quarter, with higher revenues in all lines of business. Revenues declined in South America by 9 percent from the record revenues of Q412. However, the fourth quarter was the highest revenue of all 2013 quarters in the region.
Revenues increased 14 percent in the United Kingdom and Ireland in the fourth quarter.
Finning International is the world’s largest Caterpillar dealer. Headquartered in Vancouver, B.C., Canada, the company operates in western Canada, Chile, Argentina, Bolivia, Uruguay, the U.K. and Ireland. Finning is No. 10 on the RER 100.