Finning Reports Q3 2015 Results; Announces Global Workforce Reductions and Facilities Optimization in Western Canada
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 11/12/15 -- Finning International Inc. (TSX: FTT) reported third quarter 2015 results today (all monetary amounts are in Canadian dollars unless otherwise stated).
Q3 2015 HIGHLIGHTS
"In line with significant steps already taken to adjust to the economic downturn, we took further decisive actions to reduce costs and implement sustainable operational improvements as market conditions weakened in the third quarter," said Scott Thomson, president and CEO of Finning International. "These steps include reducing the size of our global workforce by 1,900 people since the beginning of the year and 2,500 people since the start of the downturn in mid-2013. We also continued to restructure our Canadian branch network, effectively reducing our facility footprint by over 20% since the beginning of the year, to optimize the utilization of our assets throughout the cycle. While these are difficult decisions, we believe we are taking the right path to adjust our business to market realities and ensure financial strength, while simultaneously positioning Finning to deliver customer service more effectively and efficiently over the long-term."
"These organizational changes, coupled with the operational improvements we are implementing, are driven by our focus on providing value for our customers and our shareholders. In particular, the changes made to our facility footprint are underpinned by our solid commitment to our customers and follow careful consideration of their needs. We believe our resulting facility footprint provides the right support to enhance our customers'' experience, meet their evolving requirements, and improve sales and service levels through our larger service centers and extended resident field teams," continued Mr. Thomson.
"Our focus on managing the factors within our control has contributed to preserving a strong balance sheet and allowed us to improve profitability in our Canadian operations on a quarter by quarter basis throughout 2015 despite a very challenging business environment. Being able to achieve these outcomes under current market conditions gives me confidence that we will be well-positioned when demand strengthens. Going forward, we will continue to implement operating improvements which earn our customers'' loyalty, and maintain cost and capital discipline as we manage through persistent market uncertainty," concluded Mr. Thomson.
Q3 2015 FINANCIAL SUMMARY
Excluding these items, Q3 2015 EBIT would have been $97 million.
Excluding these items, Q3 2014 EBIT would have been $135 million.
Excluding these items, Q3 2015 EPS would have been $0.34. In comparison, Q3 2014 EPS was negatively impacted by a one-time non-cash write-off of ERP costs in South America ($0.06 per share), a one-time non-cash charge from the revaluation of deferred income tax balances in Chile ($0.04 per share), a higher estimated annual effective tax rate in Argentina ($0.03 per share), and severance and labour disruption costs ($0.04 per share). Excluding these items, Q3 2014 EPS would have been $0.50.
Q3 2015 HIGHLIGHTS BY OPERATION
Canada
South America
United Kingdom & Ireland
CORPORATE AND BUSINESS DEVELOPMENTS
Dividend
The Board of Directors has approved a quarterly dividend of $0.1825 per share, payable on December 10, 2015 to shareholders of record on November 26, 2015. This dividend will be considered an eligible dividend for Canadian income tax purposes.
To download Finning''s complete Q3 2015 results in PDF, please open the following link: .
Q3 2015 RESULTS INVESTOR CALL
The Company will hold an investor call on November 12 at 9:00 am Eastern Time. Dial-in numbers: 1-800-766-6630 (within Canada and the US) or 416-340-8527 (Toronto area and overseas). The call will be webcast live and subsequently archived at . Playback recording will be available at 1-800-408-3053 until November 19, 2015. The pass code to access the playback recording is 9483268 followed by the number sign.
ABOUT FINNING
Finning International Inc. (TSX: FTT) is the world''s largest Caterpillar equipment dealer delivering unrivalled service to customers for over 80 years. Finning sells, rents, and provides parts and services for equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the Company operates in Western Canada, Chile, Argentina, Bolivia, Uruguay, as well as in the United Kingdom and Ireland.
FOOTNOTES
FORWARD-LOOKING DISCLAIMER
This report contains statements about the Company''s business outlook, objectives, plans, strategic priorities and other statements that are not historical facts. A statement Finning makes is forward-looking when it uses what the Company knows and expects today to make a statement about the future. Forward-looking statements may include words such as aim, anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, project, seek, should, strategy, strive, target, and will. Forward-looking statements in this report include, but are not limited to, statements with respect to: expectations with respect to the economy and associated impact on the Company''s financial results; workforce reductions; facility closures; expected revenue; expected free cash flow; EBIT margin; expected range of the effective tax rate; ROIC; market share growth; expected results from service excellence action plans; anticipated asset utilization; inventory turns and parts service levels; the expected target range of the Company''s net debt to invested capital ratio; and the expected financial impact from the acquisition of the operating assets of the Caterpillar dealer in Saskatchewan. All such forward-looking statements are made pursuant to the ''safe harbour'' provisions of applicable Canadian securities laws.
Unless otherwise indicated by us, forward-looking statements in this report reflect Finning''s expectations at November 11, 2015. Except as may be required by Canadian securities laws, Finning does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from the expectations expressed in or implied by such forward-looking statements and that Finning''s business outlook, objectives, plans, strategic priorities and other statements that are not historical facts may not be achieved. As a result, Finning cannot guarantee that any forward-looking statement will materialize. Factors that could cause actual results or events to differ materially from those expressed in or implied by these forward-looking statements include: general economic and market conditions; foreign exchange rates; commodity prices; the level of customer confidence and spending, and the demand for, and prices of, Finning''s products and services; Finning''s dependence on the continued market acceptance of Caterpillar''s products and Caterpillar''s timely supply of parts and equipment; Finning''s ability to continue to improve productivity and operational efficiencies while continuing to maintain customer service; Finning''s ability to manage cost pressures as growth in revenue occurs; Finning''s ability to reduce costs in response to slowing activity levels; Finning''s ability to attract sufficient skilled labour resources to meet growing product support demand; Finning''s ability to negotiate and renew collective bargaining agreements with satisfactory terms for Finning''s employees and the Company; the intensity of competitive activity; Finning''s ability to raise the capital needed to implement its business plan; regulatory initiatives or proceedings, litigation and changes in laws or regulations; stock market volatility; changes in political and economic environments for operations; the integrity, reliability, availability and benefits from information technology and the data processed by that technology. Forward-looking statements are provided in this report for the purpose of giving information about management''s current expectations and plans and allowing investors and others to get a better understanding of Finning''s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.
Forward-looking statements made in this report are based on a number of assumptions that Finning believed were reasonable on the day the Company made the forward-looking statements. Refer in particular to the Outlook section of this MD&A. Some of the assumptions, risks, and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this report are discussed in Section 4 of the Company''s current AIF.
Finning cautions readers that the risks described in the AIF are not the only ones that could impact the Company. Additional risks and uncertainties not currently known to the Company or that are currently deemed to be immaterial may also have a material adverse effect on Finning''s business, financial condition, or results of operations.
Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. Finning therefore cannot describe the expected impact in a meaningful way or in the same way Finning presents known risks affecting its business.
Contacts:
Finning International Inc.
Mauk Breukels
Vice President, Investor Relations and Corporate Affairs
(604) 331-4934
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Datum: 12.11.2015 - 06:00 Uhr
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