Finning Reports Q2 2016 Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/03/16 -- Finning International Inc. (TSX: FTT) reported second quarter 2016 results today. All monetary amounts are in Canadian dollars unless otherwise stated.
HIGHLIGHTS
"The second quarter results demonstrated the benefit of actions taken to improve our operating performance and reduce costs in our Canadian and South American operations. I am pleased with the improvement in Canada''s profitability, particularly considering the impact of the recent wildfires in Northern Alberta. In South America, we continued to execute well in a tough market in Chile, and are encouraged by the opportunities emerging in Argentina," said Scott Thomson, CEO and president of Finning International. "Our results in the UK and Ireland were impacted by severance and restructuring charges, related to workforce reductions and branch closures, as well as the anticipated sale of a non-core business following the conclusion of a strategic review of our power systems division. I am confident that our UK and Ireland business is moving in the right direction and we will restore EBIT margin to historical levels by the end of the year."
"We have now taken action to restructure all three of our regions to align with market conditions, which will reduce our SG&A costs by about 20 percent between 2014 and 2016 excluding the impact of foreign exchange," continued Mr. Thomson. "While we expect the environment to remain challenging, we are now well positioned to improve profitability and generate strong free cash flow this year."
Q2 2016 FINANCIAL SUMMARY
Included in Q2 2016 and Q2 2015 results are the following significant items that management does not consider indicative of operational and financial trends either by nature or amount. These significant items are summarized below and described in more detail on page 3 of the Company''s Q2 2016 Management''s Discussion and Analysis ("MD&A").
Q2 2016 INVESTED CAPITAL
Q2 2016 HIGHLIGHTS BY OPERATION
Canada
South America
United Kingdom & Ireland
The Company expects the UK & Ireland operations to return to historic profitability levels by the end of 2016.
CORPORATE AND BUSINESS DEVELOPMENTS
Dividend
The Board of Directors has approved a quarterly dividend of $0.1825 per share, payable on September 1, 2016 to shareholders of record on August 18, 2016. This dividend will be considered an eligible dividend for Canadian income tax purposes.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
To download Finning''s complete Q2 2016 results in PDF, please open the following link:
Q2 2016 RESULTS INVESTOR CALL
The Company will hold an investor call on August 3 at 8:00 am Eastern Time. Dial-in numbers: 1-800-319-4610 (within Canada and the US) or 1-416-915-3239 (Toronto area and overseas). The call will be webcast live and subsequently archived at . Playback recording will be available at 1-855-669-9658 until August 10, 2016. The pass code to access the playback recording is 00624.
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, 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; distribution network and goodwill impairment; facility closures; expected revenue; expected free cash flow; EBIT margin; expected profitability levels; expected range of the effective tax rate; ROIC; market share growth; expected results from service excellence action plans; expected results from cost reductions and transformation initiatives; anticipated asset utilization; inventory turns and parts service levels; the expected target range of the Company''s net debt to invested capital ratio; estimated loss on disputes regarding two power system projects in the UK, anticipated sale of non-core business in the U.K.; and the expected financial impact from the Alberta wildfires. 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 August 2, 2016. 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 products and 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 as market conditions, business strategy or technologies change; 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 for forward-looking statements. 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 and in the annual MD&A for the financial risks.
Finning cautions readers that the risks described in the MD&A and 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
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 03.08.2016 - 04:00 Uhr
Sprache: Deutsch
News-ID 1450487
Anzahl Zeichen: 2489
contact information:
Contact person:
Town:
VANCOUVER, BRITISH COLUMBIA
Phone:
Kategorie:
Machinery & Tools
Typ of Press Release:
type of sending:
Date of sending:
Anmerkungen:
Diese Pressemitteilung wurde bisher 245 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Finning Reports Q2 2016 Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
Finning International Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
