Basic EPS of $0.42 was up over 160% from Q1 2010 setting a Q1 record.
Revenue climbed by 32% to $1.3 billion driven by strong new equipment sales in all operations and record product support revenue.
EBIT increased by over 140% to $107 million as earnings continued to outpace revenue growth. EBIT margin of 8.4% was significantly stronger than 4.6% in Q1 2010.
Backlog grew by 20% from December 31, 2010, topping $1.5 billion, the sixth consecutive increase in quarterly backlog.
The company raised its quarterly dividend by 8% to $0.13 per share, reflecting its expectation for strong growth and increased confidence in the outlook.
VANCOUVER, B.C. (May 11, 2011) Finning International Inc. (TSX:FTT) reported record first-quarter 2011 revenues of $1.3 billion, a 32% increase from Q1 2010 and 7% below the company's 2008 first-quarter peak of $1.4 billion. Earnings before interest and income taxes (EBIT) of $107 million were up 141% from Q1 2010 and EBIT margin of 8.4% was significantly higher than 4.6% in Q1 2010. Strong EBIT margin performance was driven by higher gross profit margins in all lines of business combined with substantially improved profitability in Canada. Basic earnings per share (EPS) grew by 163% to $0.42.
"Finning has made a tremendous start to the year with each of our operations firing on all cylinders. The market activity in the quarter increased faster than anticipated and the quarter exceeded our expectations all around," said Mike Waites, Finning president and CEO. "We continued to build on our product support momentum following a record year in 2010 with pent-up service requirements and increasing machine utilization driving demand.
"We have been diligent in improving our efficiencies and preparing to meet growing demand. As a result, we are well-positioned to meet our customers' needs and capture our substantial growth opportunities," continued Waites. "I am also pleased to announce that we are raising our quarterly dividend based on our strong financial results and our confidence in a bright future ahead. Fueled by our strategy, our partnership with Caterpillar, and our people, we are delivering on our commitment to sustainable and profitable growth."
The company expects revenues to grow, on average, at 10% per annum over the next three years. Consolidated earnings growth is forecast to outpace revenue growth as the company is making solid progress towards achieving a 10% EBIT margin in the medium term.