Finning ups investment in rental

17 December 2010

Finning International will invest heavily in its rental operations over the coming three years the company told analysts at its annual investors day presentation on 16 December.

The Caterpillar dealer said it would made a net capital investment in its rental fleets in the upper range of C$100-150 million in 2011 and would invest heavily also in 2012 and 2013.

Although Finning sold its UK rental business, Hewden, earlier this year it still has rental businesses in Canada, Uruguay, Chile, Argentina, Bolivia as well as a smaller rental operation at Finning UK.

The company said it would invest mainly in heavy equipment for its rental fleets, including mid-sized dozers, loaders and excavators. Around 9% of its Canadian revenues come from rental, while the proportion is still 5% in the UK (without Hewden) and 3% in its South American business.

Finning said at the meeting that it expected overall revenue growth of 10% per year over the next three years, with a similar revenue mix as in 2010.

"We expect strong growth in 2011 and beyond, supported by robust commodity markets," said Mike Waites, president and CEO of Finning International Inc. "We are investing in our people and facilities to further serve our customers and the company is well positioned to capture this growth."

Finning is the world's largest Caterpillar equipment dealer, headquartered in Vancouver, Canada, and with operations in western Canada, Chile, Argentina, Bolivia, Uruguay, Ireland and the UK.

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