Finning International, the world’s largest Caterpillar dealer posted $4.64 billion in revenue, a 3.6-percent increase from its 2009 total of $4.48 billion. Equipment rental totaled $299.9 million worldwide, a 6.5-percent increase compared with 2009, while Canadian equipment rental was slightly down year over year, coming in at $214.7 million compared with $224.4 in 2009.
For the fourth quarter, Finning achieved revenues of $1.4 billion, a 26-percent year-over-year jump, with EBIT of $79 million, double that of 2009’s fourth quarter. The improved results were primarily driven by improved profitability in Canada.
For the full year, EBIT improved 11 percent to $275 million.
“The fourth-quarter results were in line with expectations and provided a solid finish to a successful year,” said Mike Waites, president and CEO. “Free cash flow totaled $265 million for the year, exceeding our target. Since the fourth quarter of 2008, the beginning of the recession, the company has generated over $900 million in free cash flow, significantly strengthening the balance sheet. We are well positioned to capitalize on growth opportunities. We expect good top-line growth in 2011 and beyond, reflecting robust commodity markets. And we are continuing to invest in our product lineup and service capability to support customer demand. I am confident that we will drive margin expansion and achieve our EBIT growth projections.”
The company expects consolidated revenues to grow on average at 10 percent per year during the next three years.
In Canada, fourth-quarter revenues jumped 12 percent compared with Q4 2009, with strong growth in product support revenues, which jumped 30 percent. Rental revenues leapt 28 percent in the quarter.
In South America, fourth-quarter revenues reached a new record, increasing 50 percent compared with Q409, driven by strong new equipment sales and product support revenues. In the United Kingdom and Ireland, quarterly revenues from continuing operations jumped 33 percent in the fourth quarter, year over year.
Finning is the Caterpillar dealer for Western Canada, the U.K., Northern Ireland, Chile, Argentina, Bolivia and Uruguay. Based in Vancouver, B.C., Canada, Finning is No. 10 on the RER 100.