10.08.2005

Hewden rise 4% in first half

Hewden, Europe’s largest rental company and the UK’s second largest Crane Hirer and powered access rental company, saw its revenues rise by four percent in the six months to June to around £146 million. The improved trend accelerated in the second quarter with local currency revenues up by almost six percent compared to the same period in 2004.

Hewden’s revenues include new and used sales, looking at the pure rental and services indicates a slightly stronger pick up. The company says that in spite of continuing competitive pressures, utilisation continues to pick up, accelerating as the year progressed.

Finning UK saw revenues in the first half climb to C$589 (£255) million an increase of 11 percent in Canadian dollars and closer to 18 percent in sterling. Finnings rental division saw a decrease in revenues, particularly in the material handling sector, where a higher portion of users elected to purchase forklifts rather than take on long term rental contracts. Short term rentals were also down.

Finning (UK) has also delayed the integration of Lex Harvey and as a result, continues to experience inefficiencies in its Materials handling business resulting from operating two different information systems.

The UK represented a smaller portion of Finning internationals business in the first half of 2005, with Finning UK and Hewden representing 38 percent of group revenues compared to 43 percent last year.

Finning International saw worldwide group revenues rise by 21 percent to C$2.4 (£1.04) billion. Net income jumped by 60 percent to C$83 (£35.9) million, while cash flow eased by minus 1.7 percent.

"Our second quarter results are extremely positive and continue on the strong performance we experienced in the first quarter of this year," said Doug Whitehead, President and CEO of Finning International Inc.

"Business conditions remain buoyant and our strong order book points to a solid second half of 2005 and a good start for 2006. We are pleased with the record results being produced by our Canadian and South American operations although we are disappointed with the results of our Materials Handling business in the U.K. Together with Caterpillar Inc., we have completed a significant review of our business model for the UK dealership. Changes will begin to be implemented later this year that we expect will lead to meaningfully improved results in due course.”