Third-quarter revenue for Vancouver, B.C., Canada-based Finning, the world’s largest Caterpillar dealer, jumped 21 percent to $1.6 billion, driven by healthy demand in most of the company’s end markets. Revenue grew 27 percent in western Canada. Worldwide equipment rental increased 9 percent in the third quarter, from $87.9 million in Q311 to $96 million this year. For the first nine months of 2012, equipment rental grew from $248 million last year to $278.5 million this year.
Total revenue worldwide was $1.329 billion in the third quarter of 2011, compared with $1.606 billion (about U.S. $1.604 billion) in 2012. For the first nine months, total revenue climbed 19 percent, from $4.084 billion a year ago to $4.843 billion this year.
Quarterly EBIT of $126 million set a new record for Finning. Driven by the EBIT margin recovery in Canada, consolidated EBIT margin of 7.8 percent reflected a continued sequential improvement since the third quarter of 2011. EBITDA reached a new record of $180 million.
Also Finning is successfully integrating the newly acquired Bucyrus distribution and support business into each operation.
“Our focus on executing our strategy and healthy demand in our key markets enabled us to deliver record quarterly earnings,” said Mike Waites, president and CEO of Finning International. “We have continued to drive sequential improvement in our operating profitability and remain on track to deliver record revenue and earnings in 2012. In October, we completed a significant strategic milestone with Finning Canada successfully closing the last phase in our acquisition of the former Bucyrus distribution and support business.
Waites however was cautious in assessing Finning’s prospects going forward. “Given indications of demand softening in some markets, we are operating with caution and continue to monitor business conditions closely,” Waites said. “Looking ahead, we remain confident in our ability to drive revenues even if equipment sales weaken. We have the benefit of a resilient product support business, more service capability coming on stream to support the ever-increasing machine population, and an expanded product and service offering.”
Finning also continues to grow its rental program, which is one of the world’s largest, No. 9 on the RER 100. Headquartered in Vancouver, B.C., Canada, the company operates in western Canada, Chile, Argentina, Bolivia, Uruguay the United Kingdom and Ireland.