UPDATE 1-Caterpillar dealer Finning Q4 profit misses; to cut more jobs

Thu Feb 18, 2016 10:35am EST
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Feb 18 (Reuters) - Canada's Finning International Inc , the world's biggest dealer of Caterpillar Inc equipment, posted a lower-than-expected quarterly profit and said it would cut more jobs.

The company, which cut 13 percent of its global workforce last year, said it would cut another 400-500 jobs by mid-2016.

Finning had about 14,500 employees as of Dec. 31, 2014.

Shares of the Vancouver-based company were down 7.4 percent at C$17.29 in early trade.

Caterpillar, the world's largest maker of construction and mining equipment, has been hit by weak mining, drilling and construction activity around the world.

Finning in November shut 11 facilities in Western Canada, in addition to previously announced 16 closures, to cut costs.

The company posted a net loss of C$309 million ($225.75 million), or C$1.82 per share, for the fourth quarter ended Dec. 31, compared with a profit of C$107 million, or 62 Canadian cents, a year earlier.

Excluding a $338 million goodwill impairment charge and other items, Finning earned 23 Canadian cents per share, below the average analyst estimate of 35 Canadian cents, according to Thomson Reuters I/B/E/S.

Revenue fell nearly 16 percent to C$1.5 billion, hurt by a 28 percent fall in new equipment revenue. ($1 = 1.3688 Canadian dollars) (Reporting by Anet Josline Pinto in Bengaluru; Editing by Shounak Dasgupta)