Finning International posted fourth quarter 2017 revenue of CDN $1,735 million, compared to $1,491 million in the fourth quarter of 2016, a 16.4-percent increase. The company recorded increases in all regions, lines of business and key market segments. New equipment sales increased 27 percent, driven primarily by improved activity in the construction and power systems markets. Product support revenue grew 10 percent, and was higher in all regions and market segments. Equipment rental grew 7 percent from $56 million to $60 million.
For the full year total revenue grew about 11 percent from $5,628 million in 2016 to $6,265 million in 2017. Equipment rental grew 1 percent, from $226 million to $228 million, worldwide.
“In 2017, we delivered significantly improved financial performance, driven by strong operating leverage and capital discipline,” said Scott Thomson, president and CEO of Finning. “I am pleased with our ability to control costs and improve working capital efficiencies as we continue to capitalize on strengthening market activity and support our customers in a highly competitive environment. The operational improvements implemented across the organization combined with the strong execution of our strategic priorities have enabled us to generate significantly higher return on invested capital and solid free cash flow in 2017.”
In Canada, revenues increased 19 percent in the fourth quarter, with higher revenues in all lines of business. New equipment sales improved 32 percent, and rental equipment revenues increased 14 percent, reflecting stronger activity in the general construction markets and the integrated go-to-market offerings of new, used and rental equipment.
In South America, revenues rose 10 percent in the fourth quarter, with the highest quarterly revenues for the past two years, driven by improvements in the construction and mining markets.
Revenues increased 22 percent in the United Kingdom and Ireland, driven by robust activity in general construction and electric power generation.
Finning International is based in Vancouver, B.C., Canada. The company operates in Western Canada, Chile, Argentina, Bolivia, the United Kingdom and Ireland.