Finning predicts slight revenue decline in 2010

Finning predicts slight revenue decline in 2010

VANCOUVER — Finning International Inc. (TSX:FTT) said Wednesday it expects 2010 revenues to be down slightly from 2009 levels while earnings for the new year are forecast to see a modest increase.

The world’s largest Caterpillar equipment dealer said it expects to see lower new equipment sales in 2010, but predicts these will be partially offset by modest increases in product support revenues.

“Our sense is the economy is bottoming,” said Mike Waites, Finning’s president and chief executive officer. “We have a very strong company with a leaner cost structure. And we are driving further improvements in operations to take full advantage of growth going forward,” he added.

Finning said it expects business conditions to improve later in 2010 which leads it to anticipate earnings for the year to be up modestly over 2009.

The company’s fortunes depend a lot on conditions in the mining, construction and oilsands industries, which are major puchasers of its giant trucks, graders, engines and compression equipment.

The company said it expects to generate more than $200 million of free cash flow in 2010, with a net debt to total capital ratio falling to between 35 per cent and 40 per cent by the end of next year.

“The strong free cash flow and balance sheet will position the company well to take advantage of future opportunities,” Finning said.

Vancouver-based Finning sells, rents and services heavy equipment and engines. The company employed 13,600 people around the world at the end of 2008 and had annual revenues of just under $6 billion.

In Canada, the company operates in British Columbia, Alberta, the Yukon Territory, the Northwest Territories and Nunavut. Internationally, Caterpillar has businesses in Argentina, Bolivia, Chile, Uruguay, and the United Kingdom.

In trading on the TSX, shares of the company dropped 29 cents or 1.8 per cent to $15.90.

Just Posted

Man causes mischief with axe in Ponoka

Arson and attempted break and enter charges laid

Red Deer RCMP look for fraud suspect

Red Deer RCMP are looking for public assistance to identify a fraud… Continue reading

Blood donations needed in Central Alberta: Canadian Blood Services

357 donors are needed before Aug. 26 at the Red Deer clinic

WATCH: Red Deer man shaves beard for Mustard Seed

‘I have spent 30 years of my life being addicted to both alcohol and drugs’

Calgary Fire Department logs record opioid overdose calls in July

CALGARY — The Calgary Fire Department says there were a record number… Continue reading

RCMP in Burnaby, B.C., say Kinder Morgan protest camp to be dismantled

BURNABY, B.C. — The RCMP arrested protesters when officers enforced a court… Continue reading

Study: Smokers better off quitting, even with weight gain

NEW YORK — If you quit smoking and gain weight, it may… Continue reading

‘Queen of Soul’ Aretha Franklin has died

DETROIT — Aretha Franklin, the long-reigning “Queen of Soul” who sang with… Continue reading

Italy says death toll will mount in Genoa bridge collapse

GENOA, Italy — The death toll from the collapse of a highway… Continue reading

US newspapers to Trump: We’re not enemies of the people

NEW YORK — Newspapers from Maine to Hawaii pushed back against President… Continue reading

Liberal MP Iqra Khalid accused of giving award to purveyor of anti-Semitism

OTTAWA — A Liberal MP is under fire for presenting a ”certificate… Continue reading

Ottawa intervenes to get 13-year-old ball player to Little League World Series

OTTAWA — Thirteen-year-old Dio Gama will get to play baseball in the… Continue reading

Most Read

Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month