Finning cuts jobs as new equipment sales fall
Vancouver-based Finning (TSX:FTT) has announced it will cut a further 1,100 jobs in Western Canada and South America following a 27% decline in new equipment sales in the second quarter.
Finning has cut its staff by 1,900 since the beginning of 2015 in reaction to a slowdown in mining and the oil sands, two major business areas for the company, which is the world's largest dealer of Caterpillar (NYSE:CAT) equipment. A total of 1,100 Canadian jobs have been lost this year.
Finning will also close 11 more facilities in Western Canada, in addition to 16 other previously announced closures, in an attempt to cut costs.
"In line with significant steps already taken to adjust to the economic downturn, we took further decisive actions to reduce costs and implement sustainable operational improvements as market conditions weakened in the third quarter," Scott Thompson, CEO of Finning, said in a press release.
The company bought back 2.2 million of its shares in the third quarter. Finning reported $1.4 billion in revenue in the third quarter of 2015, compared to $1.6 billion in Q3 2014.