By Ben Glickman
Finning International, the Canadian dealer for Caterpillar products, reported a decline in fourth-quarter profit due to the significant impact of foreign currency fluctuations in Argentina.
Profit and Earnings: For the quarter ended December 31, the company posted a profit of 85 million Canadian dollars ($63 million), equivalent to 59 Canadian cents per share. This is a decrease from the previous year’s profit of C$136 million or C$0.89 per share. However, after excluding one-time items such as foreign currency effects, Finning’s adjusted per-share earnings stood at C$0.96, slightly below market expectations of C$0.97.
Revenue Stability: Despite the economic challenges caused by the currency fluctuations, Finning managed to maintain stable revenue in Q4. The company reported C$2.66 billion in revenue, which is consistent with the figures from the previous year.
Foreign Exchange Loss: Finning attributed a C$0.37 charge included in its per-share earnings to losses incurred from foreign exchange in Argentina. This indicates the severity of the impact faced by the company due to the turbulent currency situation in the region.
Challenges in Canada: In addition to the currency issues in Argentina, Finning also experienced challenges in its Canadian operations. The delayed starts to winter programs and completion of major projects negatively affected the company’s results in Canada.
Finning International’s fourth-quarter performance highlights the vulnerability of businesses to foreign currency fluctuations in global markets. Despite these challenges, the company remains resilient and focused on adapting to changing economic landscapes.