Business Roundup: Finning Q2 revenue up 21%; Komatsu Q1 sales up 44%; Takeuchi-US adds Courson Equipment; ARA drops rental forecast

Second quarter revenue for the largest Caterpillar distributor Finning International jumped 21 percent to $1.58 billion, compared to the same period last year, driven by a 46-percent increase in new equipment sales on a consolidated basis.

The company also cites product support revenue growth of 13 percent, indicating all operations reported higher parts demand.

“Our second quarter results demonstrate strong operating leverage as we continue to benefit from operating performance improvements and a reduced cost base,” says President and CEO Scott Thomson. “Strengthening demand for equipment and product support in all our regions had a positive impact on our results, and we now expect our annual revenues to increase modestly over 5% compared to 2016.”

Read the full story here.

The immediate impact of Komatsu’s acquisition of Wisconsin-based surface and underground mining equipment manufacturer Joy Global has been overwhelmingly positive as the Japanese equipment manufacturer has seen big sales and profit gains in the first quarter of the current fiscal year.

According to the company’s FY 2018 Q1 earnings report, sales are up 44.2 percent to 561.2 billion Japanese Yen ($5.1 billion). Komatsu attributed the sharp increase to the Joy acquisition along with increased construction equipment demand from “China, Indonesia and many other countries.”