Canada slowdown hits Finning’s rental business
14 February 2020
Finning’s rental revenues declined by 14% to C$55 million in the final quarter of 2019, mainly the result of a softening of the Canadian construction market, where rental and used equipment sales fell by 20% in the quarter.
Rental revenues for the full year were 3% up at C$246 million. Finning, which is one of Caterpillar’s largest dealers, has rental operations in Canada, the UK and in South America (Chile, Argentina and Bolivia.)
Total group revenues in the final quarter were up 4% to C$1911 million, with pre-tax profits 6% higher year-on-year at C$97 million.
Sales in the UK fell by 17% in the final quarter of 2019, hit by a 24% decrease in new equipment sales, driven by the power systems business. Sales of new equipment to construction in the UK were slightly below the same period in 2018, “reflecting continued uncertainty related to Brexit and slower economic growth”