Finning First Quarter Revenues Jump 19.2 Percent
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.
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.