Finning Reports Q3 2011 Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/08/11 -- Finning International Inc. (TSX: FTT) -
Q3 2011 HIGHLIGHTS
Finning International Inc. reported quarterly revenues of $1.3 billion, a 10% increase over Q3 2010. Earnings before interest and income taxes (EBIT)(1) of $46 million declined by 51% from Q3 2010, and EBIT margin was 3.5% compared to 7.9% in Q3 2010. Basic earnings per share (EPS) was $0.21, down 43% from Q3 2010. As previously disclosed, third quarter results were negatively impacted by the ERP system implementation in Canada in the quarter and the strike in British Columbia, together totaling approximately $0.25 per share.
"Our third quarter results continue to reflect strong market conditions in our core businesses. We posted higher new equipment sales in all operations and achieved outstanding product support revenues in South America and the U.K. and Ireland. Importantly, we demonstrated improved operating leverage in South America, where EBIT reached a new record, and our operations in the U.K. and Ireland more than tripled their EBIT contribution from a year ago," said Mike Waites, president and CEO, Finning International. "The functionality of our ERP system in Canada has improved considerably since go-live, and I am confident the system will deliver the expected operational benefits and support our growth objectives. As we continue to execute on our long-term strategy, I am optimistic about our growth opportunities going into 2012. Discussions continue with Caterpillar regarding the potential acquisition of the Bucyrus distribution business."
The outlook for mining, construction and power systems markets for 2012 and 2013 remains solid, and the strong backlog provides good visibility into 2012 business levels. The Company remains committed to driving profitability improvements in all operations and achieving its 10% EBIT margin target in 2013.
Q3 2011 FINANCIAL SUMMARY
Beginning with Q1 2011, the Company's financial results are reported under IFRS (International Financial Reporting Standards)(2).
Q3 2011 HIGHLIGHTS BY OPERATIONS
Canada
South America
United Kingdom and Ireland
CORPORATE AND BUSINESS DEVELOPMENTS
Dividend
The Board of Directors approved a quarterly dividend of $0.13 per share; payable on December 9, 2011 to shareholders of record on November 25, 2011.This dividend will be considered an eligible dividend for Canadian income tax purposes.
Leadership Change at Finning Canada
On October 18, the Company announced the appointment of Andy Fraser as president of Finning Canada. Mr. Fraser has held a variety of senior roles across the Company's operations in his career covering over 30 years with Finning. In his most recent role as executive vice president, power systems and global business development for Finning International, he was responsible for growing Finning's power systems capabilities globally and managing the Company's investments in OEM Remanufacturing Company Inc., PipeLine Machinery International and Energyst. Prior to this role, Mr. Fraser was managing director, Finning UK Group where he laid the groundwork for a renewed business strategy, including the successful restructuring of the U.K. operations and the acquisition of the Ireland territory. Mr. Fraser replaces Dave Parker, who stepped down from his role with the Company.
To download Finning's complete Q3 2011 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:
Q3 2011 RESULTS INVESTOR CALL
Management will hold an investor conference call on Tuesday, November 8 at 11:00 am Eastern Time. Dial-in numbers: 1-866-223-7781 (anywhere within Canada and the U.S.) or (416) 340-8018 (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 1:00 pm Eastern Time on November 8 until November 15. The pass code to access the playback recording is 1052651 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 we make is forward-looking when it uses what we know and expect 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 expected quantitative impact on the 2010 consolidated statements of financial position and statements of income and comprehensive income of the Company's transition to IFRS effective January 1, 2010; and the impact on new and revised IFRS that have been issued but are not yet effective. 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 our expectations at November 8, 2011. Except as may be required by Canadian securities laws, we do 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 our expectations expressed in or implied by such forward-looking statements and that our business outlook, objectives, plans, strategic priorities and other statements that are not historical facts may not be achieved. As a result, we 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 our 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, our products and services; our dependence on the continued market acceptance of Caterpillar's products and Caterpillar's timely supply of parts and equipment; our ability to continue to improve productivity and operational efficiencies while continuing to maintain customer service; our ability to manage cost pressures as growth in revenues occur; our ability to attract sufficient skilled labour resources to meet growing product support demand; our ability to negotiate and renew collective bargaining agreements with satisfactory terms for our employees and the Company; the intensity of competitive activity; our ability to raise the capital we need to implement our 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; new or amended IFRS or interpretations that become effective prior to the inclusion of the Company's financial statement of position in its first annual audited IFRS financial statements. 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 our 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 we believed were reasonable on the day we 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.
We caution readers that the risks described in the AIF are not the only ones that could impact us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our business, financial condition, or results of operations.
Except as otherwise indicated by us, 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. We therefore cannot describe the expected impact in a meaningful way or in the same way we present known risks affecting our business.
Contacts:
Finning International Inc.
Mauk Breukels
Vice President, Investor Relations and Corporate Affairs
(604) 331-4934
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Datum: 08.11.2011 - 13:55 Uhr
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Machinery & Tools
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