Finning revenue rises on higher sales of new equipment
Aug 8 (Reuters) - Heavy equipment dealer Finning International Inc said revenue rose on strong sales of new equipment but higher costs dragged down profit.
Finning, the largest dealer of Caterpillar Inc equipment, said net income fell 1 percent to C$81 million, or 47 Canadian cents per basic share, in the second quarter.
The company, which also rents and services equipment and engines, said revenue rose 19 percent to C$1.8 billion.
New equipment sales grew 27 percent to C$875.2 million. Sales of new equipment in Canada rose 64 percent with strong demand from mining and heavy construction industries.
Selling, general and administrative costs were higher due to an increase in the work force and expenses related to recent acquisitions, the company said in a statement.
Finning shares were up 3.5 percent at C$24.68 on Wednesday on the Toronto Stock Exchange. (Reporting by Maneesha Tiwari in Bangalore; Editing by Don Sebastian)