VANCOUVER, BC — The mega Caterpillar dealer Finning International Inc. says it will exit 11 facilities in Western Canada and cut some of its workforce in order to reduce costs in struggling markets.
Combined with the previously announced closure of 16 facilities, the company’s footprint in Western Canada will be reduced by over 20 percent by mid to late 2016.
The move follows a deep decline in oil prices, which had led to reduced output in Western Canada, while copper prices in Brazil, where Finning also does a big portion of business, have fallen by half over the past four years, according to CBC News.
Finning made the announcement as part of its third quarter financial release, which saw revenues decline by 10 percent from the third quarter of 2014 to $1.5 billion, driven by 30 percent lower new equipment sales.
Net income fell 42 percent from a year earlier to $33 million in the most recent quarter.
The company also announced an additional workforce reduction of approximately 1,100 people or eight percent, bringing the total cuts to approximately 1,900 people or 13 percent in 2015.
Including the recent workforce reduction of 450 people, the Canadian operations will have reduced their workforce by approximately 1,100 people or 20 percent in 2015.
“We also continued to restructure our Canadian branch network, effectively reducing our facility footprint by over 20 percent since the beginning of the year, to optimize the utilization of our assets throughout the cycle,” said Scott Thomson, president and CEO of Finning International. “While these are difficult decisions, we believe we are taking the right path to adjust our business to market realities and ensure financial strength, while simultaneously positioning Finning to deliver customer service more effectively and efficiently over the long-term.”
More details are on the Finning International website.
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