Finning, one of the world’s largest Caterpillar dealerships covering western Canada, Argentina, Bolivia and Chile plus the U.K. and Ireland, posted C$1.810 billion in revenue in the first quarter compared to $1.670 billion in the first quarter of 2018, an 8.4-percent year over year increase. Equipment rental worldwide was $58 million compared to $50 for the first quarter last year, a 16-percent hike. Rental revenues increased by 32 percent in Canada, driven by new projects in power systems.
Net revenue was up 3 percent because of higher new equipment sales and the addition of $19 million in net revenue from 4Refuel. New equipment sales jumped 14 percent, driven by the U.K. and Chile. Product support revenues decreased 4 percent, as higher revenues in Canada were offset by reduced product support volumes in South America.
“We had a good start to the year in Canada and strong first quarter results in the UK & Ireland,” said Scott Thomson, president and CEO of Finning International. “Importantly, we have restored the flow of parts to our mining customers in Chile, and our product support revenues in South America are returning to a normal run rate during the second quarter. We remain on track to return South America to historical profitability levels in the second half of 2019. Our focus remains on generating higher returns on invested capital in all our regions in 2019.”
In Canada, net revenues increased 7 percent, driven by higher product support revenues and additional net revenues from 4Refuel, a mobile onsite diesel fuel delivery service Finning acquired last year. Excluding the 4Refuel contribution, net revenues in Canada were up 4 percent. New equipment sales were up 2 percent on higher volumes in construction, and product support revenues increased 6 percent, driven by strong demand for component rebuilds in mining and higher parts volumes in construction.
In the U.K. and Ireland, net revenues were up 18 percent, driven by a 25-percent increase in new equipment sales. The power systems business benefited from strong activity in electric power and industrial markets. Construction volumes were also higher compared to Q1 2018. Product support revenues were up 3 percent.
Finning is No. 24 on the RER 100.