News

Finning expects revenue growth between zero and 10 per cent in 2013

TORONTO – Finning International Inc. (TSX:FTT) said Thursday it expects revenue growth between zero and 10 per cent in 2013, while earnings are expected to grow at a higher rate than revenue.

“Business conditions are expected to remain constructive, supported by stable mining activity in the company’s Canadian and South American operations,” the world’s largest Caterpillar dealer said.

“The outlook for the U.K. and Ireland is expected to be down versus 2012 due to slower economic conditions.”

Finning said it was committed to improving operating profitability and driving towards a nine to 10 per cent margin on earnings before interest and taxes.

Meanwhile, the company’s net debt to total capital ratio is expected to return to within a 35 to 45 per cent target range by the end of 2013.

For the nine months ended Sept. 30, Finning earned $232.2 million or $1.35 per share on $4.84 billion in revenue.

That compared with a profit of $188.8 million or $1.10 per share on $4.08 billion in revenue in the first nine months of 2011.

Finning closed its US$465-million deal for the distribution and support businesses of former Bucyrus Intl. from Caterpillar earlier this year.

Bucyrus rents giant dump trucks, backhauls and other equipment to mining companies, oilsands operators, construction companies and others around the world and also services the equipment.

It also runs a Caterpillar engine and equipment component remanufacturing plant in Edmonton, a mining and heavy equipment preparation and overhaul operation in Red Deer, Alta., and compression equipment repair shops in Western Canada.