Rental revenues decline at Finning
By Helen Wright11 August 2014
Despite reporting an overall rise in second quarter and first half results, Caterpillar’s largest equipment dealer Finning International said rental revenues and used equipment sales fell for the period.
Finning, which operates in Western Canada, Chile, Argentina, Bolivia, Uruguay, the UK and Ireland, reported a 7% fall in rental revenues for the second quarter to CA$86.3 million (€58.8 million) and a 6% drop for the first half to CA$174 million (€118 million).
Used equipment sales also dropped 9% for the three-month period to CA$63.9 million (€43.5 million) and 6% for the six-month period to CA$123 million (€83.8 million).
Finning reported a softer short-term rental market in all its operations, but it said activity levels in heavy rent with a purchase option were strong.
However, overall second quarter revenues grew year-on-year. Finning's total revenues stood at CA$1.77 billion (€1.21 billion) for the second quarter, up 9% year-on-year, while first half revenues grew 8% to CA$3.44 billion (€2.34 billion).
Overall net income for the six months to 30 June, 2014, was down 1% year-on-year to CA$154 million (€105 million).