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Profits, dividend rise at Finning

Finning International Inc. (TSX:FTT) will increase its quarterly dividend, the heavy equipment maker said Wednesday as it reported a sharp increase in first-quarter profits and revenues that beat analyst estimates.

VANCOUVER — Finning International Inc. (TSX:FTT) will increase its quarterly dividend, the heavy equipment maker said Wednesday as it reported a sharp increase in first-quarter profits and revenues that beat analyst estimates.

The Vancouver-based company, which operates a mining and heavy equipment preparation and overhaul operation in Red Deer, said it will now pay a quarterly dividend of 13 cents per share, up from 12 cents.

“Finning has made a tremendous start to the year with each of our operations firing on all cylinders,” president and chief executive Mike Waites said in a statement.

“The market activity in the quarter increased faster than anticipated and the quarter exceeded our expectations all around.”

Finning said it earned $71.5 million or 42 cents per share for the quarter ended March 31 compared with a profit of $24.7 million or 15 cents per share a year ago.

Revenue in the quarter totalled $1.28 billion, up from $967 million.

Analysts, on average, had expected earnings of 31 cents per share on $1.19 billion in revenue, according to Thomson Reuters.

Finning shares closed at $25.88, down 52 cents, before the announcement.

Finning International is the world’s largest Caterpillar heavy equipment dealer.

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

In addition to its Red Deer Centre of Excellence, it runs a Caterpillar engine and equipment component remanufacturing plant in Edmonton and compression equipment repair shops in Western Canada.