By Connor Hart
Finning International logged higher sales in the first quarter, though higher expenses resulted in decreased earnings.
The Canadian dealer for Caterpillar products on Monday posted a profit of C$104 million, or C$0.77 a share, for the March quarter, compared with C$121 million, or C$0.84 a share, a year earlier.
Adjusted per-share earnings came in at C$0.99, beating the C$0.89 that analysts polled by FactSet expected.
Total revenue increased 9.1% to C$2.82 billion. Net revenue, which excludes fuel costs, was C$2.5 billion, compared with analyst views for C$2.37 billion.
Selling, general and administrative expenses increased to C$410 million from C$395 million, and Finning incurred C$45 million in additional expenses during the quarter.
New equipment sales rose 7%, though the gain was offset by sales of used equipment, which fell 27%. Revenue from product support services climbed 11%.
Net revenue increased 17% in South America, driven by new equipment deliveries and what the company called strong product support growth in the mining segment. Net sales across Canada were roughly flat from last year, while net revenue from the United Kingdom and Ireland fell 8%, largely because of lower new equipment sales in power systems.
Tariff impacts have so far been largely contained to its Canadian operations, according to the company.
"We have not yet seen major shifts in customer purchasing decisions, major supply chain changes or changes in the competitive dynamics in the markets we serve as a result of the global tariff landscape," the company said, though it noted it will remain cautious moving forward.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
May 12, 2025 19:01 ET (23:01 GMT)
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