Finning Inc., the world’s largest Caterpillar dealer, posted fourth quarter revenue of $1.491 billion, compared to $1.537 billion in the fourth quarter of 2015, a 3-percent decline. Fourth quarter revenue increased 12 percent compared to the third quarter, driven by higher new equipment sales in Canada and South America, and stronger product support in Canada. Rental revenues slid 24 percent in Canada in the fourth quarter compared to the year-ago quarter.

“Our fourth quarter results provide a solid end to a year marked by continued progress towards re-shaping Finning into a stronger, more agile company,” said Scott Thomson, president and CEO of Finning International. “We enter 2017 with a significantly reduced cost structure, optimized facility footprint, efficient parts supply chain, and improved service profitability. Our resilient business model and capital discipline have enabled us to generate strong free-cash flow, which has contributed to strengthening our financial position despite challenging market conditions.”

Thomson said the company expects a modest increase in product support to be offset by ongoing weakness in equipment demand because of uncertain market conditions in the company’s territories.

“Going forward, we have clear plans in place to build on the significant operational improvements made with continued focus on safety and people,” Thomson added. “We will also increase our emphasis on leveraging technology to improve performance and deliver greater customer value.”

Based in Vancouver, B.C., Canada, Finning operates in Western Canada, Chile, Argentina, Bolivia, the United Kingdom and Ireland.