VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/13/13 -- Finning International Inc. (TSX: FTT) -
Q4 2012 HIGHLIGHTS-- Revenue of $1.8 billion was roughly on par with the record set in Q4 2011. Lower revenues in Canada and the UK & Ireland were partly offset by the highest-ever revenue from South America.-- EBIT grew by 40% to a new quarterly record of $150 million and included a $9.7 million gain on the sale of property in Canada. Consolidated EBIT margin rose for the fifth consecutive quarter to 8.4%, driven primarily by EBIT margin improvement in Canada.-- Basic EPS of $0.61 surpassed the previous quarterly earnings record by 24%.-- The Company generated $245 million in free cash flow in Q4 2012.
Finning International Inc. reported fourth quarter revenues of $1.8 billion, 2% below the record levels in Q4 2011, as lower new equipment sales were partly offset by 11% growth in product support. South America posted record revenues across most lines of business, while revenues in Canada and the UK & Ireland decreased compared to Q4 2011. Quarterly earnings before finance costs and income taxes (EBIT) rose to a new record of $150 million. Quarterly EBIT margin continued to show sequential improvement over the last five quarters and reached 8.4% compared to 5.9% in Q4 2011. Basic earnings per share (EPS) increased by 49% from Q4 of last year to $0.61, an all-time high for the Company. Backlog declined from $1.4 billion at the end of September to $1.2 billion at the end of December primarily due to strong deliveries. While some customers remain cautious making purchasing decisions, order intake in Q4 was 42% higher compared to Q3 2012.
For the full year 2012:-- Finning achieved record annual revenues of $6.6 billion which grew by 12% over 2011. New equipment sales increased by 7% to $3.1 billion - the highest level in Finning's history. Product support revenues also reached a new record, climbing by 18% to $2.8 billion.-- The Company reported 31% EBIT growth over the prior year to a record- setting $496 million, and demonstrated sequential EBIT margin expansion throughout 2012. Annual EBIT margin improved to 7.5% from 6.4% in 2011, driven primarily by EBIT margin recovery in Canada. EBITDA of $709million was also at record levels.-- Basic EPS increased to $1.96 from $1.51 in 2011 and was 25% higher than the previous annual earnings record reported in 2007.-- Return on equity of 23.5% was the strongest in Finning's history.-- The Company successfully executed on the acquisition and integration of the Bucyrus distribution and support business, which contributed incremental earnings of approximately $0.09 per share in 2012.
"We had an outstanding 2012 marked by numerous strategic achievements and record financial performance. Canada significantly improved operating profitability and expanded product support capabilities in the oil sands with the opening of a new service facility in Fort McKay. South America eclipsed previous records across the board; and, our UK and Ireland team enhanced our power systems capabilities with two strategic acquisitions. In addition, we are capitalizing on opportunities with mining customers following the successful Bucyrus acquisition," said Mike Waites, president and CEO of Finning International Inc.