August 12, 2008 / 5:42 PM / 10 years ago

Finning profit slips on costs, Canadian dollar

TORONTO (Reuters) - Heavy-equipment dealer Finning International Inc (FTT.TO) said profit fell 9 percent in the second quarter due to a stronger Canadian dollar and certain one-time costs, and it slightly lowered its earnings forecast for the full year.

Finning, which sells and rents heavy industrial equipment and engines, said net income was C$67.2 million ($63.4 million), or 39 Canadian cents a share. That’s down from C$74.1 million, or 41 Canadian cents a share, a year earlier.

The company said nonrecurring costs for the transition and integration of recently acquired Collicutt Energy Services Ltd as well as some U.K. restructuring costs trimmed 4 Canadian cents a share off its quarterly earnings.

If those costs are excluded, net income was 43 Canadian cents a share, up 2.4 percent, the company said.

And the stronger Canadian dollar shaved 9 Canadian cents from earnings, Finning said.

Analysts expected a profit of 45 Canadian cents a share before items, according to Reuters Estimates.

For the full year, Finning said it expects earnings per share of between C$1.65 and C$1.75 a share, down from its previous forecast of C$1.70 to C$1.80 a share.

    Analysts expect 2008 earnings of C$1.72 a share, according to Reuters Estimates.

    In the latest period, revenue at the Vancouver, British Columbia-based company increased 2.3 percent to a quarterly record of C$1.53 billion.

    Its global order book “remains strong,” with orders for equipment worth about C$1.7 billion. The backlog is weighted towards mining customers as commodity prices continue to be strong, Finning noted.

    ($1=$1.06 Canadian)

    Reporting by Lynne Olver; Editing by Bernadette Baum

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