Finning predicts strong 2023
By Belinda Smart21 November 2022
Finning International has attributed strong Q3 results and outlook for next year to a strategy encompassing product support, supply chain management and growing market demand.
The Canada based Cat dealer reported strong third quarter 2022 results with revenue of CAD 2.4 billion (€I.74 billion) for the quarter and net revenue of 2.1 billion €I.5 billion up 25% and 20%, respectively, from Q3 2021.
Finning confirmed “successful execution” of its product support growth strategy, with revenue from that business stream up 30% from Q3 2021, driven by strong demand.
The results, released 7 November, confirmed “record” EBIT performance in Q3 2022, up 50% from the previous quarter to CAD 224 million (€162.6 million).
The company’s home market, Canada, achieved 11.7% EBIT as a percentage of net revenue, which it described as “a record on an adjusted basis.”
Another results highlight was its South America result, “record EBIT as a percentage of net revenue of 12.3% and record return on invested capital of 22.7%.”
Finning President and CEO Kevin Parkes, who took over from Scott Thomson as president and CEO on 16 November, said; “Our strong execution and supply chain management enabled us to capitalize on continued momentum in our end markets in the third quarter and meet growing demand from our customers,” said Parkes.
“While demand conditions remain constructive, we are closely monitoring leading indicators and customer activity levels and continue to operate with a mid-cycle approach to our cost structure and capital investments.
“Looking ahead, our strong equipment backlog, product support growth strategy, and disciplined operational execution give us confidence that we will finish the year strongly and continue that momentum into 2023.”