Finning cuts jobs in Canada.
By Finning InternationalNews
Dec. 29, 2008 - Finning International, the world’s largest Caterpillar dealer, said it has eliminated about 265 people in its Canadian operations.
“The fourth quarter of 2008 has become increasingly challenging,” Finning president and CEO Mike Waites told an investor meeting in Vancouver last week. “With the financial upheaval, commodity price declines and slowdown in business activity our business, like many others, has been negatively impacted. However, we are working very hard to manage the business given these changing conditions and outlook. We have been active in re-sizing our organization to meet the expected business levels in 2009. The restructuring has been necessary under the circumstances. In some cases, we have surplus resources in certain regions and are understaffed in other regions. We are rebalancing the organization as much as possible to accommodate the different demand levels.” Waites added the company has incorporated expense control programs and will put increased focus on running the business cost effectively.
Waites said Finning expects lower new equipment sales in Canada and U.K. dealership operations and roughly flat new equipment sales in its South American operations. The company expects customer support revenues to grow in Canada and South America, and to remain flat in the U.K. Robust new equipment sales in recent years, especially large mining equipment, will boost customer support revenues.
“Business conditions for 2009 are still uncertain, however, Finning is in very good financial condition,” Waites said. “With our focus on cash generation during 2009, the balance sheet is expected to improve even further. 2009 will be a year of focus on executing our business plan, on reducing costs and driving efficiencies while building on our industry-leading customer support capabilities.”
About 60 percent of Finning’s business is in Western Canada, with about 20 percent each in the U.K. and South America (Argentina, Chile, Uruguay and Bolivia).
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