Finning, one of the world’s largest Caterpillar dealerships, posted net revenue of CDN $2.437 billion in the third quarter of 2022, compared to $2.107 billion for the same period in 2022, a 15.7-percent year-over-year increase. New equipment sales enjoyed a big hike, from $679 million a year ago to $870 million this year, a 28.1-percent surge. Equipment rental revenue rose 8.9 percent, from $79 million to $86 million. EBIT grew from $224 million to $252 million, a 12.5-percent growth.
In Canada, net revenue climbed 18 percent, driven primarily by a 57-percent increase in new equipment sales, which were strong across all sectors, led by mining deliveries to oil sands customers. Product support revenues jumped 10 percent.
In South America operations, net revenue hiked 20 percent, also driven by strong mining volume, with strong increases in construction and power systems. South America’s return on invested capital was an all-time high of 27.6 percent.
In U.K. and Ireland operations, net revenue decreased by 17 percent as lower equipment sales in construction were partially offset by high revenues in power systems.
“We delivered another strong quarter in Q3. I am very pleased with how we are executing and continue building on our strong momentum,” said Kevin Parkes, president and CEO. “I am proud of the team’s resilience in managing through specific challenges in the quarter, which included wildfires and port strikes in Canada, as well as very difficult operating conditions in Argentina, which we expect will continue while the country works through the election process. We are empowering our people to drive customer loyalty and execute on the strategic priorities we outlined at our 2023 Investor Day: drive product support, full-cycle resilience, and sustainable growth. We see continued momentum in our business, supported by robust customer activity across our diverse end markets, healthy equipment backlog, and strong service levels. From a regional standpoint, Chile is mobilizing for growth, Canada is well positioned for steady growth, and our UK & Ireland business is resilient and sharing practices to drive innovation and efficiency within our company.”
Looking to the year ahead in Canada, Finning said it expects ongoing commitment from federal and provincial governments to infrastructure development to support activity in the construction sector. Also, growing demand for reliable, efficient, and sustainable electric power solutions across communities in Western Canada creates opportunities for the company’s power systems business.
Finning is Caterpillar dealer for British Columbia, Yukon, Alberta, Saskatchewan, the Northwest Territories, and a portion of Nunavut, as well as the U.K., Ireland, Chile, Argentina and Bolivia. A major rental player, Finning is No. 21 on the RER 100.
