Finning International Inc. · TSX:FTT
Finning International — Q2 2009 Earnings Presentation
10 slides from Finning International's earnings presentation, Aug 12, 2009
Slide 1: Q2 2009 Results Investor Conference Call
Q2 2009 Results Investor Conference Call August 12, 2009
Slide 2: Forward Looking Information
Forward Looking Information This presentation and the Company’s Management’s Discussion & Analysis (MD&A), consolidated financial statements, and notes to consolidated financial statements filed separately contains statements about the Company’s business outlook, objectives, plans, strategic priorit
Slide 3: Q2 2009 Results
Q2 2009 Results (C$ millions) Q209 Q208 Q209/Q208 Q109 Q209/Q109 Revenue 1,165 1,531 (24%) 1,364 (15%) Gross profit 350 440 (21%) 394 (11%) GP margin 30.0% 28.7% 28.8% SG&A (275) (324) 15% (310) 11% Other income (expenses) (15) (8) (8) EBIT 60 108 (44%) 76 (21%) EBIT margin 5.2% 7.0% 5.5% Net Income
Slide 4: Canada – Q2/09
Canada – Q2/09 (C$ millions) Q209 Q208 Change (C$) Q109 Revenue 582 849 (31%) 713 Operating Costs (505) (737) 31% (627) Depreciation/Amortization (32) (38) (38) Other Income / (Expense) (7) (1) (2) EBIT 38 73 (48%) 46 EBIT Margin 6.5% 8.6% 6.4% New equipment sales down almost 50% over Q2/08 Product
Slide 5: FINSA – Q2/09
FINSA – Q2/09 (C$ millions) Q209 Q208 Change Change Q109 (C$) (US$) Revenue 363 341 6% (8%) 413 Operating Costs (315) (297) (6%) 8% (355) Depreciation/Amortization (9) (8) (10) Other Income / (Expense) (1) - (1) EBIT 38 36 6% (7%) 47 EBIT Margin 10.6% 10.6% 11.3% New equipment sales down 18% in func
Slide 6: UK Group – Q2/09
UK Group – Q2/09 (C$ millions) Q209 Q208 Change Change Q109 (C$) (GBP) Revenue 220 342 (36%) (29%) 239 Operating Costs (201) (290) 31% 24% (216) Depreciation/Amortization (25) (32) (25) Other Income / (Expense) (3) (3) (3) EBIT (9) 17 (153%) (160%) (5) EBIT Margin (4.2%) 5.0% (2.3%) Increasingly cha
Slide 7: Cash Flow
Cash Flow (C$ millions) Q209 Q208 Q109 Operating cash flow (1) 115 155 120 Changes in working capital items 52 (118) (106) Net (expenditures)/disposals on capital assets (27) (18) (22) Net (expenditures)/disposals on rental fleet (2) - (57) 6 Free cash flow 140 (38) (2) Strong free cash flow = $178
Slide 8: Q2/09 Summary
Q2/09 Summary Strategic review is underway at Hewden Sharper decline in new equipment sales and softer product support revenues than expected Revenue outlook more cautious as visibility into business volumes remains poor Solid operating results from FINSA supported by strong mining sector Good progr
Slide 9: Outlook
Outlook Expect soft revenues and EBIT in the second half of 2009 Product support business remains solid in mining but slow in other sectors Canada Encouraging quoting activity in the oil sands and heavy construction General construction, forestry and oil & gas expected to remain weak in the second h
Slide 10: Priorities
Priorities Strategic review at Hewden Strong free cash flow EBIT margin improvement SG&A reductions Improved operating efficiencies Remain committed to long-term strategies Global leader in mining Power systems opportunities Product support business growth 10
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