The following is a summary of the Finning International Inc. (FINGF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Finning International reported Q1 2024 net revenue of $2.3bn, an increase of 9% year-on-year, primarily due to new and used equipment sales.

• Gross profit as a % of net revenue fell by 260 basis points due to a shift in sales mix.

• Selling, General & Administrative expenses reduced by 130 basis points to 17.7% of net revenue.

• Product support revenue was down 1% but used equipment sales increased by 48% and new equipment sales grew by 25%.

• Earnings per share dropped by 5% mainly due to the shift in the mix to new and used equipment and lower margins.

Business Progress:

• Robust demand in mining and power systems contributed to growth.

• The company has launched FusEd Equipment, a platform specializing in selling used equipment globally.

• Power system sales grew 37% year-on-year, and $700m of new equipment orders were secured for delivery in H2 2024.

• Growth opportunities are being pursued in Chile, Canada, and the U.K. & Ireland.

• An increased dividend shows commitment to returning capital to shareholders.

• Finning plans to publish its 2023 sustainability report and continues to aim for improved safety, emission reduction, and customer support for decarbonization goals.

• The company anticipates moderate order reduction due to improved availability of certain product lines and plans to unlock $450m of capital in H2 through inventory reduction and warehouse automation.

• Through continuous evolution in the used equipment division and optimistic projections for the oil sands market, Finning demonstrates its strategic focus on business growth and resilience.

More details: FINNING INTERNATIONAL INC IR

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