Finning Reports 2014 Q1 Results
May 13, 2014
Q1 2014 HIGHLIGHTS
- Revenues rose by 7% to $1.7 billion as higher revenues in Canada and the UK & Ireland more than offset the decline in South America.
- Product support revenues increased by 9% to record levels driven by improved demand for parts in Canada, mostly in mining.
- Earnings before finance costs and income taxes (EBIT)(1) of $111 million was 5% below Q1 2013, reflecting lower sales volumes in South America and lower gross profit margins in Canada.
- Basic earnings per share (EPS) declined to $0.39 from $0.43 in Q1 2013, reflecting a lower EBIT and a higher effective tax rate.
- The order backlog(1) of $1.3 billion at the end of Q1 was up by approximately 45% from $0.9 billion at the end of December 2013, driven primarily by record order intake in Canada, including an equipment order for $260 million from an existing oil sands producer for a fleet expansion.
- The Company raised its dividend to a level which represents an annualized dividend increase of 10 cents to 71 cents per share, reflecting confidence in operating performance and the expectation for strong free cash flow generation in 2014 and beyond.
For the complete results: View Q1 Results