Press release from Marketwire
Finning Hosts Investor Day, Provides Outlook
Thursday, December 16, 2010
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2010) - Finning International Inc. ("Finning") (TSX:FTT) is hosting its annual Investor Day on December 16. Finning's senior management will provide an update on operations and a medium term outlook. The meeting will be webcast live on the investor relations section of www.finning.com. The archived webcast with the supporting presentations will be available on the Finning website after the event.
"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. Importantly, we are very focused on operating leverage and margin expansion as we drive forward to deliver our true value potential."
Business conditions are expected to improve in all Finning operations and across all sectors and lines of business. The medium term outlook can be summarized as follows:
On a consolidated basis, revenues are projected to grow at 10 percent per annum over the next three years. The revenue mix is expected to remain similar to 2010.
SG&A as a percentage of revenue is expected to decline.
Consolidated earnings growth is forecast to outpace revenue growth.
The Company expects to make ongoing progress towards achieving a 10 percent consolidated EBIT margin in the medium term.
The Company expects higher net investments in capex and rental over the next three years to support growth, while continuing to generate solid free cash flow and further strengthen the balance sheet.
In addition, the Company is pleased to announce that Rebecca Schalm will be joining Finning as Senior Vice President, Human Resources. Ms. Schalm will be responsible for providing leadership and oversight to Finning's global efforts to build on the talents of its employees to achieve the Company's strategic objectives. Ms. Schalm's extensive experience includes providing consulting services in the areas of executive selection, integration and leadership development, succession and talent management, and senior team development. Ms. Schalm earned a Ph.D. in Industrial/Organizational Psychology from the University of Guelph.
Finning International Inc. (TSX:FTT) is the world's largest Caterpillar equipment dealer delivering unrivalled service to customers since 1933. Finning sells, rents and services equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the Company operates in western Canada, Chile, Argentina, Bolivia, Uruguay, as well as in Ireland and the United Kingdom.
This report contains statements about the Company's business outlook, objectives, plans, strategic priorities and other statements that are not historical facts. A statement we make is forward-looking when it uses what we know and expect today to make a statement about the future. Forward-looking statements may include words such as aim, anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, project, seek, should, strategy, strive, target, and will. Forward-looking statements in this report include, but are not limited to, statements with respect to: expectations with respect to the economy and associated impact on the Company's financial results; the estimated annualized cost savings and anticipated restructuring charges related to actions taken by the Company in response to the economic downturn; expected revenue levels and EBIT growth; anticipated effective tax rate; anticipated generation of free cash flow (including projected net capital and rental expenditures), and its expected use; anticipated defined benefit plan contributions; and expected target range of Debt Ratio; and the expected quantitative impact on the consolidated statement of financial position of the Company's transition to IFRS at January 1, 2010. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws.
Unless otherwise indicated by us, forward-looking statements in this report describe our expectations at December 16, 2010. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from our expectations expressed in or implied by such forward-looking statements and that our business outlook, objectives, plans, strategic priorities and other statements that are not historical facts may not be achieved. As a result, we cannot guarantee that any forward-looking statement will materialize. Factors that could cause actual results or events to differ materially from those expressed in or implied by our forward-looking statements include: general economic and credit market conditions; foreign exchange rates; commodity prices; the level of customer confidence and spending, and the demand for, and prices of, our products and services; our dependence on the continued market acceptance of Caterpillar's products and Caterpillar's timely supply of parts and equipment; our ability to continue to implement our cost reduction initiatives while continuing to maintain customer service; the intensity of competitive activity; our ability to raise the capital we need to implement our business plan; regulatory initiatives or proceedings, litigation and changes in laws or regulations; stock market volatility; changes in political and economic environments for operations; new or amended IFRS or interpretations that become effective prior to the inclusion of the Company's financial statement of position in its first annual audited IFRS financial statements. Forward-looking statements are provided in this report for the purpose of giving information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.
Forward-looking statements made in this report are based on a number of assumptions that we believed were reasonable on the day we made the forward-looking statements. Refer in particular to the Market Outlook section of the MD&A. Some of the assumptions, risks, and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this report are discussed in the Company's current Annual Information Form (AIF) in Section 4.
We caution readers that the risks described in the AIF are not the only ones that could impact us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our business, financial condition, or results of operations.
Except as otherwise indicated by us, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way or in the same way we present known risks affecting our business.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mauk Breukels Finning International Inc. Director, Investor Relations and Corporate Affairs (604) 331-4934 firstname.lastname@example.org www.finning.com