August 15, 2008

Finning International reports record second-quarter revenues

VANCOUVER

Finning International Inc. reported record revenues in the second quarter of 2008 but said earnings could slow later this year due to tough market conditions in the United Kingdom and a slow start to the year in Canada.

Vancouver-based Finning is the world’s biggest seller and renter of Caterpillar heavy equipment.

While Canadian revenues are expected to catch up in the second half of the year, “the shortfall from the first half is unlikely to be made up,” Finning said.

The company also said “increasingly challenging market conditions” in its construction equipment rental business in the U.K. are are also a concern.

The Vancouver-based company reported a second-quarter profit of $67.2 million, compared with earnings of $74.1 million for the same period last year.

The company’s backlog of $1.7 billion remained unchanged and about two-thirds of that is from Canada. The rest is shared between South America and the U.K.

In Canada, about 80 per cent of the backlog is in mining and oilsands.

“It is the essence of our business model, and we expect it to remain strong,” the company said.

Canadian Press

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