August 12, 2009 / 5:24 PM / 9 years ago

UPDATE 1-Finning profit falls 29 percent on weak economy

* Q2 EPS C$0.28 vs C$0.39

* Reuters Estimates C$0.29/share

* Revenue down 24 percent

* Shares fall 3.4 percent on the TSX

TORONTO, Aug 12 (Reuters) - Finning International (FTT.TO), the world’s largest Caterpillar equipment dealer, said on Wednesday its quarterly profit fell 29 percent as the weak economy sapped demand in many of the areas where it does business.

The company, which sells and rents heavy industrial equipment and engines, said it will no longer provide revenue forecasts for 2009 and that it would likely not achieve the forecast it gave for 2009 in late 2008.

Finning said it would focus on cash flow generation and balance sheet liquidity as well as cost reduction initiatives.

It said its second-quarter net income was C$47.8 million ($43.9 million), or 28 Canadian cents a share. That compares with C$67.2 million, or 39 Canadian cents a share, a year earlier.

Analysts had expected a profit of 29 Canadian cents a share, according to Reuters Estimates.

Shares of the Vancouver, British Columbia-based company were down 64 Canadian cents, or 3.4 percent, at C$18.30 on the Toronto Stock Exchange shortly after the results were released.

Revenue was down 24 percent at C$1.16 billion.

Finning said its backlog of equipment orders was worth C$600 million, compared with C$1.7 billion a year earlier.

Finning said its financial condition remains strong and that it expects it to improve further as strong cash generation is used to reduce debt levels. It said it has about C$450 million in available committed credit facilities. ($1=$1.09 Canadian) (Reporting by John McCrank; editing by Peter Galloway)

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