Finning to cut up to 500 additional jobs in 2016, on top of 2015 downsizing

VANCOUVER -- Canada's largest Caterpillar heavy equipment dealer says it will cut 400 to 500 jobs from its global operations this year, on top of 1,900 that were announced last year in two separate rounds of downsizing.

See Full Article

Vancouver-based Finning International Inc. (TSX:FTT) -- which also operates in South America and the United Kingdom -- says about 200 of the latest cuts are in Canada and the rest will be spread across its international operations.

Finning is grappling with the downturn in the oil and gas and mining industries, which are major users of the heavy equipment sold and serviced by the company in Western Canada and abroad.

It announced in November that it would lay off 1,100 people, or eight per cent of its total workforce at the time, including 440 in Western Canada.

The company's fourth-quarter results, which included the November announcement, showed revenue down 16 per cent from a year earlier -- to $1.52 billion from $1.8 billion.

Canada's share of overall revenue was $698 million, down 26 per cent from a year earlier. South American revenue fell 11 per cent to $526 million and revenue from the U.K. and Ireland was up 11 per cent to $294 million.

Finning reported a loss of $309 million or $1.82 per share for the last three months of 2015 compared with a profit of $107 million or 62 cents per share in the same period a year earlier.

Excluding one-time charges, Finning said it would have earned 23 cents per share in its latest quarter compared with a profit 55 cents per share a year ago.

Finning president and CEO Scott Thomson said the company had been able to generate relatively consistent earnings and cash flow by adjusting to the conditions, enabling it to maintain its dividends.

"Notwithstanding this progress, we are not immune to the challenges facing our customers across our key markets and geographies," Thomson said in a statement.

He said Finning is on track to meet its plan to reduce general sales and administrative expenses permanently by $150 million and it expects further savings from the workforce reductions announced Thursday.



Advertisements

Latest Economic News

  • Michael Kors takes over shoemaker Jimmy Choo

    Economic CTV News
    LONDON -- American fashion brand Michael Kors has bought luxury shoemaker Jimmy Choo in a deal worth $1.35 billion (896 million pounds). Kors says that London-listed Jimmy Choo is "the ideal partner" that will be bolstered with further development of its online presence. Source
  • Smugglers offer crammed big rigs as 'VIP treatment' to U.S.

    Economic CTV News
    SAN DIEGO -- When Thomas Homan, the acting director of U.S. Immigration and Customs Enforcement, was awakened Sunday morning with news that migrants were found dead inside a sweltering tractor-trailer outside a San Antonio Walmart, his mind flashed back to 2003, when he stood at the back of a truck about 200 kilometres southeast of San Antonio that carried 19 dead migrants. Source
  • New Democrats promise to fix Insurance Corp. of B.C. amid spectre of rate hikes

    Economic CTV News
    VANCOUVER -- British Columbia's attorney general is reassuring drivers they will not be on the hook for a hike in auto-insurance rates, despite a report released Monday forecasting prices could soar as much as 30 per cent without immediate and drastic action. Source
  • Venturing Out with Arlene Dickinson and guest Dino Trevisani

    Economic CBC News
    CBC Calgary presents Venturing Out with Arlene Dickinson. It's a seven-part series of candid conversations between Arlene and some of Canada's top entrepreneurs. They cover the highs the lows and everything in-between when it comes to starting and running a business in Canada. Source
  • Asian stocks sag amid caution on earnings, politics

    Economic CTV News
    TOKYO -- Asian share benchmarks sagged Tuesday as investors awaited a slew of corporate earnings reports. A meeting of the Federal Reserve and caution over potential twists and turns in U.S. politics kept most indexes trading within a narrow range. Source
  • New investment rules fail to reveal some hidden fees

    Economic CBC News
    You may have noticed some new information in your latest investment update, and some of it might have you scratching your head. It's all thanks to a new set of rules, mandated by Canadian securities regulators, called Client Relationship Model 2 (CRM2), which is supposed to provide investors with more information about what they're spending to have their money managed, and how their investments are performing. Source
  • 'Energizer Bunny' loonie to peak near 80 cents US: experts

    Economic CTV News
    Two leading Bay Street strategists expect the Canadian dollar’s steady climb over the last two months will start to top out at about 80 cents US, a level it flirted with on Monday amid signs of an increasingly robust economy. Source
  • In Google vs. the EU, a $2.7B fine could just be the start

    Economic CTV News
    SAN FRANCISCO -- Google's parent company Alphabet can easily afford the $2.7 billion write-down it's taking to cover a big antitrust fine in Europe. But it might find it harder to shrug off the rest of the European regulatory assault that's headed its way. Source
  • Alphabet profit slumps on record $2.7B US fine by European Union

    Economic CBC News
    Alphabet Inc. reported a 27.7 percent drop in quarterly profit as the company recorded a previously announced charge related to a record fine imposed on its Google unit by the EU. EU antitrust regulators last month hit Google with a record 2.4-billion-euro ($2.7 billion US) fine for favouring its own shopping service, taking a tough line in the first of three probes of its dominance in searches and smartphone operating systems. Source
  • Why an 80-cent loonie is good for shoppers but bad for oil producers

    Economic CBC News
    One of the few saving graces of the oil downturn has been that oil is priced in U.S. dollars. Energy companies sell their products in U.S. currency, but pay their expenses in Canadian dollars. So as the loonie dropped over the past three years, it tempered the brutal downturn. Source