Finning Enjoys Record Q2 Revenues, Strong Earnings

Finning International last week reported CD $1.5 billion (about U.S. $1.41 billion) in revenue for the second quarter of 2007, a 25.7-percent increase over the second quarter of 2006. Earnings from continuing operations before interest and taxes were CD $123.1 million in the second quarter, a 39.6-percent jump from last year’s second quarter total of $88.2 million. Second-quarter net income from continuing operations was $75.3 million or $0.42 per diluted share, a 35.5-percent year-over-year leap.

Canadian equipment rental revenue was CD $68.6 million, compared with $55.5 million for the same period last year.

“It was another quarter of record revenues and earnings,” said Doug Whitehead, president and CEO of Finning International. “Continued high levels of new equipment sales and growing customer support revenues in all our markets drove our strong performance. We have also achieved a major strategic goal in the sale of our U.K.-based tool rental business. With a gross sale price of $245 million, this transaction will free up a significant amount of capital in the third quarter that we plan to redeploy elsewhere to achieve higher returns. The outlook for our business continues to be very good and we anticipate a strong second half of the year. As well, with our order backlog at near record levels, the outlook for 2008 looks good as well.”

For the six months ending June 30, revenue was up 20.7 percent at the company’s Canadian operations, reflecting growth in all lines of business, particularly equipment sales.

Based in Vancouver, B.C., Finning is No. 13 on the RER 100.

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