Vancouver, British Columbia-based Finning International last week reported first quarter revenues of CD $968.2 (about $706 million U.S.) a 10.7 percent increase over the first quarter of 2003. EBITDA for the quarter was about $46 million U.S., and net income was $17.4 million, compared with $49.1 million and $25.6 million respectively in Q103.
Finning officials said the exceptionally strong performance of its South American operation, benefiting from strong commodity prices, was somewhat offset by lower earnings from its British rental division Jewden, because of continuing competitive pressures and higher expenditures during the quarter.
Canadian revenues increased by 1.4 percent, mainly because of increases in the equipment rental division, as well as higher power and energy sales and customer support services, although those gains were partially offset by lower new mobile equipment sales and leasing revenues. With 25 Cat Rental Store locations serving Western Canada compared with 15 stores in last year’s first quarters equipment rental revenues increased from $21.4 million U.S. to $24.4.
Finning officials added that Cat Rental Stores returned higher margins than the dealership rental business.
Finning, No. 16 on the new RER 100, owns Caterpillar dealerships and Cat Rental Stores in British Columbia and Alberta, dealerships and Cat Rental Stores in Chile, Bolivia and Uruguay, and a large rental network in the United Kingdom.