Finning International Inc. (TSX:FTT) saw its share price drop nearly 4% Wednesday before announcing its second quarter results after market close.
The world’s largest dealer of Caterpillar Inc. (NYSE:CAT) heavy equipment posted a $210.1 million loss in the quarter ending June 30, 2010, beating analyst estimates.
The heavy equipment distributor had a $47.8 million profit in the same quarter a year ago.
The red ink was primarily attributed to the company’s sale of its U.K.-based Hewden subsidiary in May to an affiliate of Sun European Partners LLP at a cost $244 million after taxes. (See “Finning rebuilding its U.K. presence after departing in the spring ” – BIV Daily edition, August 4 and “Finning expanding into Emerald Isle ” – BIV Daily edition, August 10)
“Market conditions are improving for all our operations and the recovery is unfolding earlier than we expected,” said Finning CEO Mike Waites in a statement. “Mining remains strong and activity in non-mining markets is picking up.”
Finning had a conference call scheduled for Thursday morning.