Finning, the world’s largest Caterpillar dealer and major North American rental company, posted a 35-percent revenue increase in the fourth quarter driven by highest-ever new equipment sales in each of its regions and record product support revenues. Consolidated EBIT grew 28 percent to CND $107 million (about U.S. $107.4 million), led by best-ever results from South America.
For the full year 2011, from continuing operations, Finning achieved record revenues of CND $5.9 billion, a 29-percent increase compared with 2010. New equipment sales grew 50 percent, while product support revenues climbed 13 percent to $2.4 billion, the highest level in Finning’s history. Annual EBIT leapt 33 percent to a new record of $380 million, and EBIT margin was 6.4 percent. Earnings per share jumped 42 percent to $1.51.
Worldwide rental revenues jumped 26 percent in the fourth quarter on a year-over-year basis, from $274.7 million for the full year of 2010 to $345.5 million in 2011. Fourth-quarter worldwide rental revenue was $97.5 million, compared with $77.4 million in the year-ago period.
“We had numerous record-setting achievements in the fourth quarter, including best-ever new equipment sales and total revenues from each of our operations,” said Mike Waites, president and CEO of Finning International. “Our strong finish to 2011 capped a year of considerable progress for Finning. Our robust results, together with continued strong market conditions, provide us with significant momentum heading into 2012. We look forward to capitalizing on our tremendous growth opportunities, particularly with the addition of the former Bucyrus distribution business which provides us with an unparalleled solution portfolio for mining customers that truly sets Finning apart in our marketplace.
“Our focus in 2012 is squarely on consistently delivering on our company’s great potential. Our priorities are to improve profitability in our Canadian operations, successfully integrate the former Bucyrus business, and maintain a strong balance sheet. We fully intend to drive operating efficiencies, deliver strong earnings growth in 2012 and achieve steady progress towards our 9- to 10-percent EBIT margin target in 2013.”
Finning International is based in Vancouver, B.C., Canada, and operates in western Canada, Chile, Argentina, Bolivia, Uruguay, the United Kingdom and Ireland. A major player in the Canadian rental market, Finning is No. 9 on the RER 100.