VANCOUVER - Finning International Inc.'s second-quarter profit and revenue beat analyst estimates as the heavy-equipment dealer benefited from stronger sales of new equipment, higher product support revenue and improved margins.
The Vancouver-based company, which sells Caterpillar equipment in Western Canada and several other countries, said its net income was up 44 per cent from last year at $81 million and revenue was up nine per cent at $1.73 billion.
Finning said all lines of its business experienced higher revenue compared with last year except used equipment. Product support revenue was up 11 per cent at $968 million and new equipment revenue was up 12 per cent at $623 million.
Net income per share was 48 cents, up 44 per cent from last year when Finning had $55 million or 33 cents per share of net income and $1.58 billion of revenue.
Analysts had estimated 44 cents per share of net income and $1.6 billion of revenue, according to Thomson Reuters Eikon.
In addition to its earnings, Finning announced the pending retirement of chief operating officer Juan Carlos Villegas, a 20-year veteran of the company, who has been president of Finning Canada for five years.
Kevin Parkes becomes president of Finning Canada on Jan. 1, a day after Villegas formally retires. Parkes will be succeeded as managing director of Finning UK and Ireland by David Primrose, a Finning Canada executive vice-president.
Last week, Toromont Industries - eastern Canada's largest Caterpillar dealer - also beat analyst estimates. It reported $67.6 million or 83 cents per share of net income for the second quarter when revenue was $961.3 million.
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The Canadian Press