Another Stellar Quarter Increased DividendThursday July 25 12:54 PM EST
Finning reports record quarterly earnings, says remainder of 2002 promising
VANCOUVER (CP) - Finning International Inc., a major Caterpillar equipment dealer, reported record quarterly profits Thursday and said the outlook is bright for the second half of this year.
Net profits for the second quarter ended June 30 rose to $34.7 million, a 20 per cent increase over the $28.9 million reported in the same period last year. Earnings per share, on a diluted basis, rose to 44 cents from 37 cents. Quarterly revenues fell six per cent to $797.4 million from $849.4 million last year.
The Vancouver-based company said the revenue decline was consistent with its previous forecasts and mainly attributable to the divestiture last year of its Canadian materials handling business.
There was also an absence of large mining equipment deliveries, reflecting a softening in the oil and gas sector, the company said.
"These results reflect the continued focus on operating and financial performance, our global diversification and the efforts of employees in all our operations," Doug Whitehead, Finning's president and chief executive, said in a statement.
"Our results are particularly rewarding considering that the economic environment continues to be challenging in some of the markets we serve," Whitehead said.
The company also said it was increasing its quarterly dividend by one cent to eight cents a share, a 15 per cent increase, reflecting management's confidence in the company's earnings and revenue growth going forward.
"Looking at the balance of 2002, we are increasingly confident in our outlook in earnings for the year," Finning said.
In trading on the Toronto stock market Thursday, Finning (TSX:FTT - news) shares fell five cents to $23.45.