First Quarter Financial Results
May 18, 2010
Finning reports first quarter results; Increases quarterly dividend to $0.12 per share.
- Diluted earnings of $0.12 per share were on plan, compared to $0.26 in the first quarter of 2009 and $0.10 in the fourth quarter of 2009. Strong results from South America were offset by weak results from Canada and the U.K due to ongoing difficult market conditions.
- Market activity continued to increase across all sectors and in all operations in the first quarter. Consolidated order backlog increased by 60% from the fourth quarter of 2009 to $0.9 billion as order intake improved from the prior quarter, primarily driven by mining equipment orders.
- Selling, general and administrative expenses decreased by $38 million from the first quarter of 2009, and the Company remains on track to achieve its cost reduction initiatives.
- Free cash flow was $99 million in the first quarter. The Company expects free cash flow to moderate for the next two quarters, and is on track to generate approximately $200 million in free cash flow for the full year.
- Subsequent to the quarter end, the Company sold Hewden, its UK equipment rental business, for gross proceeds of GBP 110 million (C$ 171 million). The sale resulted in a non-cash loss estimated at $247 million or $1.44 per share in the second quarter. This transaction completes the strategic realignment of our UK operations. Combined sale proceeds from this divestiture, Hewden Tools in 2007, and the dealership’s Materials Handling division in 2006 total almost $600 million. Finning remains fully committed to the UK Caterpillar dealership.
For the complete results: View Q1 Results