15.05.2009

Hewden tips Finning UK into loss

Finning, the Canadian based Caterpillar dealer and owner of UK crane, access and telehandler rental company Hewden has reported first quarter revenues of C$1.36 ($1.15) billion down 4.6 percent on the same period last year.

Group pre- profits were C$57.7 ($49) million 36 percent lower than for the same period in 2008.

In the UK revenues were down 27.8 percent to C$238.7 (£135) million partially due to the Canadian dollar which was 10.1 stronger against sterling compared to last year. In sterling terms revenues fell 19.6 percent.

Rental revenues at Hewden were down 28.9 percent in sterling terms, due to lower utilisation and lower rates. The company says that the re-organisation of the business is at an advanced stage and is expected to be completed during the second quarter. It adds that the changes will not only reduce the company’s overall cost structure, but also “improve the utilisation performance of its assets, and improve performance on delivering on its commitments to customers.”

The UK Group as a whole incurred a loss before interest and taxes of $5.4 (£3) million, compared with a profit of $29.1 (£16.3) million in the first quarter 2008. The negative result has largely been attributed to a significant loss at Hewden.

Other income in the first quarter of 2008 included a $14.7 (£8.3) million pre-tax gain on the sale of properties at Hewden.