Strong year-end for Finning
By Joe Malone06 February 2018
Finning has announced fourth-quarter 2017 revenues of CA$1.74 billion (€1.12 billion), representing a year-on-year increase of 16%. Full-year revenues for the company were CA$6.27 billion (€4.05 billion), up 11%.
The Canadian distributor for Caterpillar equipment also reported an earnings before interest, taxes, depreciation and amortization (EBITDA) increase of 143% compared to the fourth quarter of 2016, to CA$157 million (€101.4 million). Full-year EBITDA grew 63%, to CA$583 million (€377 million).
Rental revenues in Canada were up 14% for the quarter, which Finning said reflected stronger activity in the construction market. Full-year rental revenues stood at CA$228 million (€147.3 million) – an increase of 1%, with the global fourth-quarter rental revenues growing 7%.
Sales were also up in South America by 10%, said to be the highest quarterly product support revenues over the last two years, while the UK and Ireland yielded a 22% increase.
Scott Thomson, president and CEO of Finning, said, “In 2017, we delivered significantly improved financial performance, driven by strong operating leverage and capital discipline. I am pleased with our ability to control costs and improve working capital efficiencies as we continue to capitalise on strengthening market activity and support our customers in a highly competitive environment.
“The operational improvements implemented across the organisation combined with the strong execution of our strategic priorities have enabled us to generate significantly higher return on invested capital and solid free cash flow in 2017”
Thomson added that, moving forward, the company expected current momentum to continue in 2018.