Finning 2016 Q1 Results
May 5, 2016
Q1 2016 HIGHLIGHTS
- The Company generated $30 million in free cash flow(2) in Q1/16, compared to $(232) use of cash in Q1/15, and continues to expect 2016 annual free cash flow to be modestly above $300 million.
- The global workforce was reduced by 435 people year to date in response to difficult market conditions.
- Strong revenue performance in Canada, up 6% from Q1/15.
- Canada's SG&A costs(3) declined by 9% from Q1/15, excluding severance and restructuring costs, and Saskatchewan operations.
- Canada's EBIT margin(2)(3) of 4.0%, excluding severance and restructuring costs, was in line with management's expectations and reflected large equipment deliveries as well as workforce reductions which occurred at the end of Q1; (reported EBIT margin was 3.0%).
- South America's EBIT margin, excluding severance costs, would have been 8.9%; (reported EBIT margin was 7.3%). South American operations continued to proactively manage costs in response to weakening market conditions.
- Excluding global severance and restructuring costs, as well as higher than expected loss provisions on certain power system projects in the UK, basic EPS(3) would have been $0.19 per share; (reported basic EPS was $0.09 per share).
For the complete results: View Q1 Results