Finning’s Revenue Leaps 36.1 Percent in Fourth Quarter
Finning, one of the world’s largest Caterpillar dealers, posted CDN $2.653 billion in revenue in the fourth quarter of 2022, compared to $1.949 billion in the fourth quarter of 2021, a 36.1-percent uptick. The increase reflected large new equipment volume and strong product support growth rates. Significant mining deliveries in Canada and South America drove new equipment sales growth of 52 percent compared to the fourth quarter of 2021.
Consolidated equipment backlog was a record $2.5 billion on December 31, 2022, a 35-percent increase compared to the backlog at the end of 2021, driven by higher order intake in mining and power systems.
“We are grateful to our employees for their commitment and contribution, which helped us finish 2022 safely and deliver record results,” said president and CEO Kevin Parkes. “Our strong execution combined with significant strategic wins across the business in 2022 have provided us with great momentum into 2023, setting the stage for continued improvement in our full-cycle earnings capacity. Looking ahead, we are mindful of the uncertain global business environment, including slowing rates of growth, and we are reinforcing our mid-cycle operating cost and capital model. On balance, we see constructive demand conditions in our diverse end markets where we expect strength in mining and energy sectors to more than offset slowing construction markets in the UK and South America. We are seeing continued momentum at the start of 2023 and expect growth in the first half of the year, underpinned by our record equipment backlog, very busy workshops, and growth in rebuilds driven by the strong execution of our product support strategy.”
Equipment rental for the quarter totaled $83 million, compared to $68 million in Q421, a 22-percent increase.
For the full year, total revenue was $8.215 billion compared to $6.696 billion in 2021, a 22.7-percent increase. Equipment rental revenue for the year was $297 million compared to $235 million in 2021, a 26.4-percent jump.
Based in Vancouver, Finning is a Caterpillar dealer in Canada, United Kingdom, Ireland, Chile, Argentina and Bolivia. Its Canadian operations are based in Edmonton, Alberta, and has operations in British Columbia, Alberta, Saskatchewan, Yukon, the Northwest Territories and a portion of Nunavut.
Finning is No. 21 on the RER 100.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.