Canadian Caterpillar dealer Finning posted CDN $1.670 billion in first quarter revenue compared to $1.401 billion in the first quarter of 2017, a 19.2-percent increase. EBIT was $113 million, compared to $86 million a year ago, a 32-percent boost, and EBITDA jumped 20 percent from $131 million to $157 million.
Revenue increased driven by improved customer activity in key industries across all regions. New equipment sales jumped 37 percent, reflecting stronger demand in mining, construction and power systems markets, particularly in Canada.
Canadian revenues were up 23 percent, driven by a 62-percent increase in new equipment sales. South America revenues jumped 15 percent, and revenues increased 19 percent in the United Kingdom and Ireland.
Equipment rental was essentially flat at about $50 million for the quarter.
“I am encouraged by the continued positive market momentum and growing backlog at the start of 2018,” said Scott Thomson, president and CEO of Finning. “We achieved strong revenue growth and improved profitability in the first quarter as we continue to benefit from leverage of additional revenues on fixed costs. I am particularly pleased with the progress we are making on our digital and supply chain initiatives, which enable us to reduce our cost to serve while transforming our customer experience. Looking ahead, we remain focused on capturing profitable growth opportunities in our markets, generating improved returns on invested capital, and advancing our long-term strategic priorities.”
Finning has headquarters in Vancouver, B.C., Canada.