Finning International presented an optimistic picture at its annual Investor Day in Toronto this week, with an expectation of between zero and 10 percent revenue growth in 2013 compared to 2012. Finning management said it expects solid results in Canada and South America, but weaker results in the United Kingdom and Ireland. Finning, based in Vancouver, B.C., Canada, said it expectsto grow at a higher rate than revenue, with a 9- to 10-percent EBITDA margin. CEO Mike Waites said the company is looking for potential acquisitions.
“There will be more dealerships coming Finning’s way,” Waites said. “There’s nothing imminent, but there will be more growth from acquisitions as we go forward.”
Waites emphasized that he was confident the company could drive improved profitability even in a modest growth environment.
“We have the advantage of operating in diverse industry sectors and servicing a large equipment fleet across our territories, which will sustain strong growth in our resilient product support business,” said Waites. “We are also set to benefit from the contribution of a full year of operating our newly acquired Bucyrus distribution and support business.”
For the nine months ended Sept. 30, Finning earned $1.35 per share on $4.84 billion in revenue. Waites added that the company’s product support business has grown revenue at a compounded annual rate of 11 percent during the past decade. Finning’s product support business is bringing in close to $3 billion in annual revenue.
Finning posted more than $250 million in rental revenue in 2011 and is No. 9 on the.