17.11.2007

Hewden up 10%

Finning International has reported another record result, boosted by an improvement in its UK businesses. The UK group which includes, Hewden, Finning – the CAT dealer and Di-Perk the Perkins distributor revenues were C$1 billion, an increase of 15 percent although in sterling terms the increase was a more modest 8.1 percent.

Hewden saw revenues (without the Tool hire business, sold to Speedy during the period) climb by 10.5 percent in Canadian dollars, to C$339 million (£166 million) the increase in local currency is not disclosed, but is likely to be closer to a six percent increase.

UK profits before interest and tax grew by over 15 percent to C$56.9 million (£28 million) Hewden profits are no longer reported separately.

Finning's report says “The company continues to manage the effects of the recent disposition of the tool hire division and the start-up of a new information system.

Both items have been disruptive to normal operations. While execution of both projects has gone reasonably well to this point, ongoing management of these changes continues to challenge Hewden employees.”

“The improved management information that will be available from the new system will take several quarters of operations to gather and analyse and the operational and pricing changes which may be driven by this information will take a further period of time to implement and become visible in operating results.”

Finning International saw revenues grow by 21 percent to C$4.2 billion with net income up 38 percent to C$208 million.

Mike Waites, executive vice president and CFO of Finning International said: "We saw solid performance in our Canadian and UK dealership operations as they continue to show attractive growth in new equipment revenues. Hewden’s third quarter 2007 results were weaker as anticipated due to the significant
operational changes experienced by Hewden this quarter".