Canadian Caterpillar dealer Finning posted net revenue in the second quarter of 2023 of CDN $2.559 billion compared to $2.004 billion in the second quarter of 2022, a 27.7-percent increase. Equipment rental increased from $70 million to $78 million, an 11.4-percent hike. New equipment sales totaled $949 million compared to $733 million in the year-ago quarter, a 29.5-percent jump.
Earnings before earnings and taxes in Canada totaled $136 million, compared to $102 million a year ago, a 33.3-percent leap. In South American operations, EBIT jumped from $64 million to $104 million, a 62.5-percent surge. In the U.K. and Ireland, EBIT totals declined from $23 million to $18 million.
“Our team continues to execute well, delivering another great quarter, with EPS of $1.00 per share and Adjusted ROIC above 20 percent for the first time,” said CEO Kevin Parkes. “The combination of our expanding installed equipment base and disciplined execution of our product support strategy continues to drive strong product support revenue, which was again the largest contributor to our earnings growth in the quarter. We are hiring technicians and building our capabilities and capacity to continue delivering the best service to our customers and capturing market share opportunities.
“The performance of our South American business was particularly strong in Q2. Strategic wins with large mining customers are helping drive increased activity in our mining business, with product support revenue up 34 percent in functional currency compared to Q2 2022 and Adjusted ROIC above 26 percent. We are excited about both near and long-term growth opportunities in South America, and we look forward to sharing more details about our strategy and demonstrating our strong capabilities in the region when we host our Investor Day and Tour in Antofagasta, Chile, in September.
“Customer activity levels in our regions remain robust, and our outlook is positive. We expect continued momentum in our business to be underpinned by strong equipment backlog and service levels, as well as successful execution of our product support growth strategy, including very strong rebuild activity.”
Finning is the world’s largest Caterpillar dealership. In Western Canada, Finning provides product support services across British Columbia, Yukon, Alberta, Saskatchewan, the Northwest Territories, and a portion of Nunavut. The regional head office is in Edmonton, Alberta.
In South America, Finning’s regional head office is in Santiago, Chile, and the company operates in Chile, Argentina and Bolivia.
A major rental player, Finning is No. 20 on the RER 100.