Big Caterpillar dealer Finning to cut more jobs, shut outlets

Thu Nov 12, 2015 10:06am EST
 
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By Shubhankar Chakravorty

(Reuters) - Canada's Finning International Inc, the world's biggest dealer of Caterpillar Inc equipment, said on Thursday it would cut another 1,100 jobs in Canada and South America and close 11 Canadian locations due to weak sales.

The latest job cuts bring the total to 1,900 this year, or 13 percent of the company's global workforce.

Vancouver-based Finning also reported lower-than-expected quarterly revenue and profit as its customers in the mining, energy and construction industries cut spending.

Finning shares fell more than 13 percent to C$17.33 in early trading on the Toronto Stock Exchange.

Caterpillar, the world's largest maker of construction and mining equipment, has been hit by weak mining, drilling and construction activity around the world, and has forecast a drop in 2016 sales and profit.

Caterpillar's shares were down 2.7 percent at $69.99.

Finning said it would shut 11 facilities in Western Canada to reduce costs. The company had already announced the closure of 16 locations in the country.

The company said it would cut 450 jobs in Canada, bringing the total job cuts to 1,100 in the country this year.   Continued...