Finning, the world’s largest Caterpillar dealership, posted $2.403 billion in revenue in the fourth quarter of 2023, compared to $2.368 billion for the fourth quarter of 2022, a 1.5-percent increase. Equipment rental revenue fared better in the fourth quarter totaling $88 million, compared to $83 million in the year-ago quarter, a 6-percent increase.
The numbers were better for the full year. Total net revenue was $9.543 billion in 2023, compared to $8.215 billion in 2022, a 16.2-percent hike. Equipment rental totaled $327 million for the year compared to $297 million in 2022, a 10.1-percent increase.
“2023 was a strong year for Finning,” said president and CEO Kevin Parkes. “We achieved 17 percent growth in product support revenue, 31 percent growth in power systems revenue, and 20 percent adjusted return on invested capital resulting in record earnings per share. We also ended the year with positive fr cash flow, a strong balance sheet, and a solid equipment backlog.
Parkes praised the company’s resilience and dedication to customers in the face of business challenges in the fourth quarter.
“The change in government, extraordinary currency restrictions, and a major devaluation in Argentina led to disrupted business activity and a significant foreign exchange loss. While changes being made by the newly elected Argentina government have the potential to be positive in the long run, the Q4 environment was very challenging. We have taken action to significantly reduce our go-forward financial exposure and are taking a low-risk approach in Argentina in 2024. In Canada, the delayed start to many winter programs and the completion of several major projects reduced product support and rental activity. Despite these challenges, our increased earnings capacity remains strong, and we are making progress on our strategic plan.
“We will continue to build on our strong 2023 results, empowering our people to drive customer loyalty and execute on the strategic priorities we outlined at our Investor Day. As we look ahead, 2024 will be a year of execution, where we are focused on growing our business in a moderating growth environment through driving product support, building full-cycle resilience by unlocking invested capital, and delivering sustainable growth in used, rental, and power systems.”
Finning is the world’s largest Caterpillar dealer, delivering service to customers for more than 90 years. Headquartered in Surrey, British Columbia, Finning provides Caterpillar equipment, sales and rentals, parts, and services in Western Canada, Chile, Argentina, Bolivia, the United Kingdom, and Ireland.
