Finning International, Vancouver, British Columbia, Canada, reported second quarter revenues of $1.8 billion, a 19 percent increase over last year. Quarterly revenues grew in all regions and across all business lines compared to the second quarter of 2011.
New equipment sales were particularly strong in Canada, while growth in product support was driven by South America. Quarterly EBIT (earnings before finance costs and income taxes) increased to $122 million. Quarterly EBIT margin of 6.9 percent was below the 8.1 percent achieved in the second quarter of 2011, but showed sequential improvement over the last three quarters. Basic EPS (earnings per share) was $0.47 compared to $0.48 in the second quarter of 2011.
“I am pleased with our strong quarterly revenues fuelled by a third consecutive quarter of record product support as well as solid new equipment sales. We reported sequential improvement in EBIT margin, and we continue to see healthy order intake levels and robust demand for product support, particularly in our resource-rich territories,” said Mike Waites, president and CEO of Finning International.
“In light of uncertain global economic conditions, we are monitoring our end markets closely and are simply taking prudent steps to manage our inventory levels, in order to maintain a strong financial position,” Waites said.
“A highlight in the quarter was the successful closing of the former Bucyrus distribution businesses in the U.K. and South America, and integration is advancing ahead of plan and expectations,” he said. “We continue to make good progress against our priorities: driving improved EBIT margin performance, integrating the former Bucyrus business and strengthening our balance sheet. We have a strong strategy in place to drive shareholder value, and our recent appointment of Juan Carlos Villegas to chief operating officer underscores our commitment to disciplined execution.”