Canada’s Finning told attendees at its annual Investor Day last week that it expects revenue growth of about 5 percent in 2012 and 10 percent per year in 2013 and 2014, with product support representing a higher percentage of total revenue compared to 2011. The world’s largest Caterpillar dealer added that it expects EBIT to grow at a significantly higher rate than revenue as the company continues to track towards achieving 9- to 10-percent EBIT margin in 2013.
“We are entering 2012 with a sizable backlog and a clear growth strategy,” said Mike Waites, president and CEO, Finning International. “Going forward, we remain focused on capitalizing on this demand and driving margin expansion. We will continue to invest in our product support capabilities, so we remain well-positioned to deliver superior service to our customers and value for our shareholders.”
Business conditions are expected to remain robust in Finning’s Canadian and South American operations, with the outlook for the U.K. and Ireland continuing to be positive despite economic uncertainty in the European markets. Finning sells, rents and services equipment and engines. Based in Vancouver, B.C., the company operates in western Canada, Chile, Argentina, Bolivia, Uruguay, Ireland and the U.K. A major rental company, Finning is No. 9 on the RER 100.