Revenues rose 12 percent in the third quarter for Finning to a total of $1.78 billion (about U.S. $1.7 billion) for its worldwide operations, compared to $1.59 billion last year. Higher revenues in Canada more than offset relatively flat revenues in South America and the U.K. and Ireland compared to the third quarter of 2012. Equipment rental revenues on a worldwide basis grew 8.1 percent from CDN $96 million in the third quarter of 2012 to CDN $103.8 million (about U.S. $99.4 million).
For the first nine months of the year, revenues totaled CDN $4.96 billion (about U.S. $4.75 billion).
Product support revenues increased in all operations and were 14-percent higher on a consolidated basis, partly attributable to about $50 million additional contribution from the expanded mining product line (the former Bucyrus business).
Revenues in Canada rose 25 percent compared to a year ago, driven by equipment sales and contributions from the expanded mining product line, acquired during the fourth quarter of 2012. New equipment sales rose by 35 percent, reflecting significant deliveries in the quarter, including $18 million from the expanded mining product line, as well as increased sales in construction and forestry.
“In the third quarter, we delivered results that were in line with our expectations as strong equipment deliveries in Canada and increased revenue from product support in all of our regions resulted in an increase in EBIT,” said Scott Thompson, president and CEO of Finning International. “Our ability to deliver these results in an uncertain economic environment speaks to the strength of Finning’s business model and the resiliency of the product support business. The mining sector, particularly in South America, is under pressure and we are actively managing our cost structure so that it remains in line with expected business levels. I am pleased with our third-quarter cash flow generation and we are on track to achieve approximately a 45-percent net debt-to-capital ratio by the end of the year, which is at the high end of our targeted range.”
Finning International, based in Vancouver, B.C., Canada, is the world’s largest Caterpillar dealer operating in western Canada, Chile, Argentina, Bolivia, Uruguay, the United Kingdom and Ireland. Finning is No. 10 on the RER 100.
