Finning Reports Solid Q2 2012 Results and Raises Revenue Guidance for 2012
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/08/12 -- Finning International Inc. (TSX: FTT) -
Q2 2012 HIGHLIGHTS
Finning International Inc. (TSX: FTT) reported second quarter revenues of $1.8 billion, a 19% increase over Q2 2011. 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%, below 8.1% achieved in Q2 2011, showed sequential improvement over the last three quarters. Basic EPS (earnings per share) was $0.47 compared to $0.48 in Q2 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 Inc. "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."
"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," continued Mr. Waites. "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."
Q2 2012 FINANCIAL SUMMARY
Q2 2012 HIGHLIGHTS BY OPERATIONS
Canada
South America
United Kingdom and Ireland
CORPORATE AND BUSINESS DEVELOPMENTS
Dividend
The Board of Directors has approved a quarterly dividend of $0.14 per share, payable on September 7, 2012 to shareholders of record on August 24, 2012. This dividend will be considered an eligible dividend for Canadian income tax purposes.
Finning issues $150 Million of Medium Term Notes
On June 13, 2012, Finning announced the issuance of medium term notes for aggregate gross proceeds of $150 million. The offering consists of $150 million 5.077% Medium Term Note Debentures due June 13, 2042, and will rank pari passu with existing senior unsecured obligations of Finning. Proceeds are expected to be used to fund the anticipated purchase from Caterpillar of the distribution and support business formerly carried on by Bucyrus International Inc. in Finning's territories in Canada. The acquisition is expected to close on or around October 1, 2012.
Executive Management Changes
On May 22, 2012, the Company announced the appointment of Juan Carlos Villegas, formerly president of Finning South America, to the newly created position of executive vice president and chief operating officer for Finning International Inc. Reporting to the CEO, Mr. Villegas will oversee and drive operational excellence across the Company's three operating units: Canada, South America, and the U.K. and Ireland; and will have a key role in increasing efficiencies and profitability. Mr. Villegas is succeeded by Marcello Marchese, who was appointed president, Finning South America on June 4, 2012.
To download Finning's complete Q2 2012 results in PDF, please open the following link:
To download the CEO and CFO certification letters once they have been filed on SEDAR, please open the following link:
Q2 2012 RESULTS INVESTOR CALL
Management will hold an investor conference call on Wednesday, August 8 at 10:30 am Eastern Time. Dial-in numbers: 1-800-769-8320 (anywhere within Canada and the U.S.) or (416) 340-8061 (for participants dialing from Toronto and overseas).
The call will be webcast live and subsequently archived at . Playback recording will be available at 1-800-408-3053 from 12:00 pm Eastern Time on August 8 until August 15. The pass code to access the playback recording is 4463383 followed by the number sign.
ABOUT FINNING
Finning International Inc. (TSX: FTT) is the world's largest Caterpillar equipment dealer delivering unrivalled service to customers since 1933. Finning sells, rents and services equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the Company operates in western Canada, Chile, Argentina, Bolivia, Uruguay, as well as in the United Kingdom and Ireland.
Footnotes
Forward-Looking Disclaimer
This report contains statements about the Company's business outlook, objectives, plans, strategic priorities and other statements that are not historical facts. A statement Finning makes is forward-looking when it uses what the Company knows and expects today to make a statement about the future. Forward-looking statements may include words such as aim, anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, project, seek, should, strategy, strive, target, and will. Forward-looking statements in this report include, but are not limited to, statements with respect to: expectations with respect to the economy and associated impact on the Company's financial results; expected revenue and SG&A levels and EBIT growth; anticipated generation of free cash flow (including projected net capital and rental expenditures), and its expected use; anticipated defined benefit plan contributions; the expected target range of Debt Ratio; the impact of new and revised IFRS that have been issued but are not yet effective; the expected timetable for completion of the proposed transaction between the Company and Caterpillar to acquire the distribution and support business formerly operated by Bucyrus in Finning's Canadian dealership territory; growth prospects for the former Bucyrus business acquired or being acquired by the Company in Finning's dealership territories (Bucyrus) and the competitive advantages of the business being acquired; expected future financial and operating results generated from Bucyrus; anticipated benefits and synergies of Bucyrus; and the expected impact of Bucyrus on Finning's earnings. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws.
Unless otherwise indicated by us, forward-looking statements in this report describe Finning's expectations at August 8, 2012. Except as may be required by Canadian securities laws, Finning does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from the expectations expressed in or implied by such forward-looking statements and that Finning's business outlook, objectives, plans, strategic priorities and other statements that are not historical facts may not be achieved. As a result, Finning cannot guarantee that any forward-looking statement will materialize. Factors that could cause actual results or events to differ materially from those expressed in or implied by these forward-looking statements include: general economic and market conditions; foreign exchange rates; commodity prices; the level of customer confidence and spending, and the demand for, and prices of, Finning's products and services; Finning's dependence on the continued market acceptance of Caterpillar's products and Caterpillar's timely supply of parts and equipment; Finning's ability to continue to improve productivity and operational efficiencies while continuing to maintain customer service; Finning's ability to manage cost pressures as growth in revenues occur; Finning's ability to attract sufficient skilled labour resources to meet growing product support demand; Finning's ability to negotiate and renew collective bargaining agreements with satisfactory terms for Finning's employees and the Company; the intensity of competitive activity; Finning's ability to successfully integrate the distribution and support business formerly operated by Bucyrus after that transaction closes; Finning's ability to raise the capital needed to implement its business plan; regulatory initiatives or proceedings, litigation and changes in laws or regulations; stock market volatility; changes in political and economic environments for operations; the integrity, reliability, and availability of information technology and the data processed by that technology; operational benefits from the new ERP system. Forward-looking statements are provided in this report for the purpose of giving information about management's current expectations and plans and allowing investors and others to get a better understanding of Finning's operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.
Forward-looking statements made in this report are based on a number of assumptions that Finning believed were reasonable on the day the Company made the forward-looking statements. Refer in particular to the Outlook section of the MD&A. Some of the assumptions, risks, and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this report are discussed in the Company's current Annual Information Form (AIF) in Section 4.
Finning cautions readers that the risks described in the AIF are not the only ones that could impact the Company. Additional risks and uncertainties not currently known to the Company or that are currently deemed to be immaterial may also have a material adverse effect on Finning's business, financial condition, or results of operations.
Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. Finning therefore cannot describe the expected impact in a meaningful way or in the same way Finning presents known risks affecting its business.
Contacts:
Finning International Inc.
Mauk Breukels
Vice President, Investor Relations and Corporate Affairs
(604) 331-4934
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Datum: 08.08.2012 - 13:00 Uhr
Sprache: Deutsch
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Machinery & Tools
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