Finning's rental business grows
18 March 2008
Finning International's rental businesses in Canada and Latin America grew by 23,6% and 38% respectively in the three months to 30 June this year. Its Hewden subsidiary saw revenues in local currency grow 5,6% in the same period.
Finning's rental business in Canada reported revenues up to C$68,6 million from C$55,5 million. The company said the increase was “a result of strong customer demand in this sector and a corresponding increase in the rental fleet. All rental categories continue to generate strong returns.”
The company opened two new Cat Rental Stores in Canada during the quarter, plus another in August, and now has a network of 33 stores in western Canada.
Revenues at its UK Hewden business-now excluding the tool hire operation sold to Speedy Hire – rose by 5,6% to C$113,6 million for the quarter. Finning said the UK company “continues to be impacted by lower rental utilisation rates and Hewden's inability to achieve price realisation targets. This is due to a competitive market in the UK as well as management being deployed in various initiatives to generate future benefits.”
Finning's rental business in Latin America – in Chile, Argentina, Bolivia, and Uruguay-are much smaller in scale, but growing fast. Revenues in the three months grew by 38% to C$13,0 million.