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Finning CEO Mike Waites (JOHN LEHMANN/The Globe and Mail)
Finning CEO Mike Waites (JOHN LEHMANN/The Globe and Mail)

Finning to hike quarterly dividend Add to ...

Finning International Inc. will increase its quarterly dividend, the heavy equipment maker said Wednesday as it reported a sharp increase in first-quarter profits and revenues that beat analyst estimates.

The Vancouver-based company said it will now pay a quarterly dividend of 13 cents per share, up from 12 cents.

"Finning has made a tremendous start to the year with each of our operations firing on all cylinders," president and chief executive Mike Waites said in a statement.

"The market activity in the quarter increased faster than anticipated and the quarter exceeded our expectations all around."

Finning said it earned $71.5-million, or 42 cents per share, for the quarter ended March 31 compared with a profit of $24.7-million, or 15 cents per share, a year ago.

Revenue in the quarter totalled $1.28-billion, up from $967-million.

Analysts, on average, had expected earnings of 31 cents per share on $1.19-billion in revenue, according to Thomson Reuters.

Finning International is the world's largest dealer of Caterpillar heavy equipment.

The company sells and services giant dump trucks, backhauls and other equipment to mining companies, oil sands operators, construction companies and others around the world.

Finning also runs a Caterpillar engine and equipment component remanufacturing plant in Edmonton, a mining and heavy equipment preparation and overhaul operation in Red Deer, Alta., and compression equipment repair shops in Western Canada.

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