August 12, 2011 / 1:52 PM / 6 years ago

UPDATE 1-Finning Q2 profit doubles

* Says strike at British Columbia unit to hurt Q3

* Q2 earnings per basic share C$0.48 vs $0.21 year ago (Follows alerts)

Aug 12 (Reuters) - Finning International Inc’s second-quarter profit more than doubled, but it expects the strike at its British Columbia unit and certain challenges with its new enterprise resource planning system to impact its third-quarter results in Canada.

Finning, the largest dealer of Caterpillar equipment, had received a strike notice after the worker’s union at the unit rejected its wage agreement proposal.

Finning also said it has entered into preliminary talks with Caterpillar regarding possible purchase of certain distribution rights related to Caterpillar’s recently announced Bucyrus acquisition.

For the April-June quarter, net income rose to C$82 million, or 48 Canadian cents per basic share, from C$36 million, or 21 Canadian cents per basic share, a year ago.

Revenue for the company, which has operations in western Canada, Chile, Argentina, Bolivia, Uruguay, Ireland and the UK, rose 39 percent to C$1.5 billion, due in part to strong new equipment sales.

Vancouver, British Columbia-based Finning’s shares were up 80 Canadian cents at C$26.20 on Friday morning on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Roshni Menon)

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