Finning International warns of earnings fall
THE worlds largest distributor of Caterpillar heavy equipment, Finning International, has warned that its third-quarter earnings would be “significantly below” last years.
Company officials blamed the slump in global commodity prices and lacklustre sales at its UK operations.
Finning, based in western Canada, generated C$ 2.3bn (US$ 1.5bn) in revenues last year by selling, financing and servicing Caterpillar equipment.
The group said its UK arm was suffering because of the strong pound. Finning last year merged its UK operations with Leverton, the former Caterpillar dealer for eastern and northern England, in order to build a national presence.
Case and Deere, the US agriculture and heavy equipment manufacturers, also recently issued warnings about weaker demand.
- US machinery makers show strain, FWi, 17 September, 1998
- Financial Times 23/09/98 page 31 (News Digest)