Finning, the Canadian distributor for Caterpillar equipment, has announced revenues of CA$1.58 billion (€1.06 billion) for the second quarter of 2017 – a year-on-year increase of 21%.

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The company said that an increase in new equipment and product support revenues were key to its increase.

Finning’s earnings before interest, taxes, depreciation and amortization (EBITDA) was CA$146 million (€97.55 million) for the quarter, which represents a huge increase of 87% compared to the same quarter a year ago.

Finning said that market recovery and improved operating performance drove higher profitability in Canada, the UK and Ireland.

It added that South America delivered strong results, and that Argentina grew significantly.

Scott Thomson, president and CEO of Finning, said, “Our second quarter results demonstrate strong operating leverage as we continue to benefit from operating performance improvements and a reduced cost base.

“Strengthening demand for equipment and product support in all our regions had a positive impact on our results, and we now expect our annual revenues to increase modestly over 5% compared to 2016.”

He added that, to meet stronger demand, the company would purchase inventories while maintaining capital discipline.

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