Finning International Inc. (TSX:FTT) increased sales 16% during 2012’s first quarter and announced that it will boost its quarterly dividend by 7.7% –even though earnings slumped in the quarter.
Finning, which is B.C.’s third largest public company ranked by revenue, generated $1.47 billion in first-quarter sales and a $67 million profit, or $0.39 per share.
That compares with $1.28 billion in revenue and a $71.5 million profit ($0.42 per share) in the same quarter a year ago.
The heavy equipment distributor’s earnings dip was fuelled by costs related to its new parts management system.
Finning president and chief executive Mike Waites was upbeat, however.
“Strong prevailing market conditions across our regions are reflected in our excellent start to the year and provide a solid platform for growth throughout 2012,” said Waites.
He said that the company would boost its quarterly dividend from $0.13 per share to $0.14 per share.
During the quarter, Finning closed its deal to buy the distribution and support businesses of a former Caterpillar Inc. division known as Bucyrus International – an entity that operated in South America, Western Canada and the U.K.
The deal was valued at approximately US$465 million.
Finning shares yesterday slipped $0.40 to $25.35.
