VANCOUVER, British Columbia, June 13, 2021 (GLOBE NEWSWIRE) – Finning International Inc. (TSX: FTT) (“Finning”, “the Company”, “we”, “us” or “our”) is hosting a investors on June 14 from 11:00 a.m. Eastern Time. Following presentations from members of our management team, attendees will have the opportunity to ask questions using the webcast portal.

“We continue to execute on our global strategic priorities designed to improve our return on invested capital and ultimately increase our earning capacity. Robust execution through 2020 put us back on track to achieve a strong ROI in line with our 2018 Investor Day goals, albeit a year later. Significant improvements in ROI across all three regions will be increasingly evident from our second quarter 2021 results, as the improvement in market activity that we had forecast for the second half of 2021 has started to show. , and we see a strong recovery in revenues and results in the second quarter. Said Scott Thomson, President and CEO of Finning International.

“We have built a solid foundation for growth and put in place a simple plan to increase our return on invested capital while exceeding our previous peaks in earnings per share. As our markets recover to mid-cycle levels and are expected to move to a sustained up-cycle, our strategy is to drive product support revenue growth, further reduce our costs, and reinvest our free cash flow to compose our earnings per share.

“Over the medium term, we expect our consolidated product support revenues to grow at an average annual rate of 5-9% from 2021 levels, assuming a sustained bull market cycle. Key drivers of growth in our product support revenues include market share gains in construction, increased copper production in Chile, stability of the tar sands and associated reconstructions, and growth of our digital performance solutions. We are delighted to launch our CUBIQ Performance Solutions â„¢ platform, a new brand and marketplace for Finning’s digital services This unified digital platform enables our customers to better leverage data and performance solutions to improve productivity , costs, safety and environmental performance.

“As our revenues recover from 2020 levels, we continue to reduce our costs by increasing the productivity of the workforce and facilities and by optimizing our supply chain processes. a percentage of net sales was 18.5% from March to May 2021. We will continue to implement incremental initiatives to reduce fixed costs by an additional $ 50 million over 2021 and 2022 as we target 17% general and administrative expenses as a percentage of mid-cycle net sales.

“Our goal is to proactively manage our business throughout the cycle to grow and increase our profits at each successive mid-cycle point. We expect our next mid-cycle annual net income to be between $ 7.1 billion and $ 7.5 billion from the third quarter of 2021 to the second quarter. 2022 and we expect to achieve EPS greater than $ 2.00 per share and a consolidated ROI greater than 15%. Beyond the coming mid-cycle, in a sustained bullish cycle scenario, we anticipate compound earnings growth potential of mid-teens and above.

“With strong market momentum underway, we are excited about our next phase of growth and our profit potential going forward. Our management team is ready to take our execution to the next level and we are very happy to present our plan to you on our Investor Day 2021, ”concluded Mr. Thomson.

To participate in our 2021 Investor Day, please register for the Finning Investor Day 2021 webcast

You can also access the event by dialing one of the following numbers:
Toll free in Canada and the United States: (833) 227-5839
International: (647) 689-4543
Conference ID: 6047706

Investor Day presentations will be posted on our website and will be webcast live. The webcast and accompanying presentations will be archived on our website after the event.

Finning is the world’s largest Caterpillar equipment dealer, providing unmatched service to customers for nearly 90 years. Finning sells, rents and supplies parts and services for equipment and engines to help customers maximize productivity. Based in Vancouver, British Columbia, the Company operates in Western Canada, Chile, Argentina, Bolivia, United Kingdom and Ireland.

Contact information:

Investor Relations
Amanda hobson
Senior Vice President, Investor Relations and Treasury
(604) 331-4865
[email protected]

www.finning.com

FORWARD-LOOKING INFORMATION CAUTION

This press release includes “forward-looking information” (as defined in applicable Canadian securities legislation) which is based on expectations, estimates and projections that we believe to be reasonable as of the date of this press release, but which may ultimately prove to be incorrect. . Forward-looking information contained in this press release includes the execution of our global strategic priorities to improve return on invested capital and increase our earning capacity; that we are once again on track to achieve a strong ROI in line with our 2018 Investor Day goals, albeit one year later; that significant improvements in ROI in all three regions will be increasingly evident from our second quarter 2021 results and that we see a strong recovery in revenues and results in the second quarter; our plan to increase our return on invested capital and exceed our previous record earnings per share; our strategy to drive product support revenue growth, reduce costs and reinvest our free cash flow to compose our earnings per share; our expectation that in the medium term, our consolidated product support revenue will increase at an average annual rate of between 5 and 9% compared to 2021 levels, assuming a sustained bull cycle supported by our share gains in market in construction, increasing copper production in Chile, stability of the tar sands and associated reconstructions, and the growth of our digital performance solutions; the operation and performance of the CUBIQ Performance Solutions â„¢ platform; our continued cost reduction by increasing labor and facility productivity and optimizing our supply chain processes; our expectation that additional initiatives will reduce our fixed costs by an additional $ 50 million over 2021 and 2022; our target of 17% general and administrative expenses as a percentage of mid-cycle net sales; our goal of proactively managing our business throughout the cycle to grow and compound our profits at each successive mid-cycle point; our expectation that our next annual mid-cycle net revenue will be between $ 7.1 billion and $ 7.5 billion from the third quarter of 2021 to the second quarter of 2022; our expectation to achieve EPS greater than $ 2.00 per share and a consolidated ROI greater than 15% for this mid-cycle period; and, beyond the mid-cycle ahead, in a sustained bullish cycle scenario, our mid-teens expectation and above compound earnings growth potential. No assurance can be given that the information contained in this press release will result in sustained or improved financial or sustainability performance, and past performance is no guarantee of future results. This information has been provided to provide information about our current expectations and plans and is correct at the time of this press release, but may be replaced by more recent information at a later date. Unless required by law, we assume no obligation to update information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors, and is based on a number of assumptions that we believe are reasonable as of the date of this presentation, which may result in results, performance or achievements that are significantly different from future results, performance or achievements expressed or implied by forward-looking information. The assumptions on which the forward-looking information is based include, but are not limited to, the assumptions noted above and that: we will be able to execute our strategic plans, take advantage of growth opportunities, control our costs, ensure continued profitability in a market context, respond to the risks and opportunities associated with climate change and manage the impacts of COVID-19, and that markets will recover to mid-cycle levels and move into a sustained bull cycle , and that market dynamics will continue. Other important information identifying and describing these risks, uncertainties, assumptions and other factors are contained in our last filed annual information form (AIF) and in our most recent annual and quarterly management report on financial results (MD&A), which are available. on our website (www.finning.com) or under our profile on SEDAR (www.sedar.com).

We caution readers that the risks described in the Annual Information Form and MD&A are not the only risks that could impact the Company. We cannot accurately predict the total impact COVID-19 will have on our business, results of operations, financial condition, or demand for our services, in part due to uncertainties related to the ultimate geographic spread of the virus. , the severity of the disease, the duration of the outbreak, the actions our customers or suppliers may take under the current circumstances, including slowing or stopping operations, the duration of any travel and quarantine restrictions imposed by the governments of affected countries and other actions that may be taken by those governments to respond to the pandemic. Additional risks and uncertainties that are not currently known to us or which are currently considered to be insignificant may also have a material adverse effect on our business, financial condition or results of operations.