Finning International Inc. (TSX:FTT) reported a record third quarter, which included a 10% increase in revenue for the period ending September 30, 2008.
The Vancouver heavy equipment dealer reported that revenue rose to $1.5 billion from $1.3 billion in 2007's third quarter due primarily to a 12% increase in equipment and engine sales and a 15% increase in parts and service revenue.
Net income increased to 1.9% to $64.8 million from $63.6 million.
Finning's order backlog of equipment sales also grew to a record $2 billion, reflecting continued solid demand from mainly mining, oilsands and power system customers. Finning said many of its mining customers are low cash-cost producers whose mines are expected to continue operating despite lower commodity prices.
The company expects the remainder of 2008 to be negatively affected by the global economic slowdown. Construction-related spending in the U.K. has declined and is expected to affect the equipment rental sector. Higher labour costs, weakening natural gas drilling activity and a shrinking construction sector are all expected to take a toll on Finning's Canadian operations.
Finning's share price range during the past week: between $13.06 and $14.20; 52-week high: $31.30; 52-week low: $12.44.