Finning to cut up to 500 additional jobs in 2016, on top of 2015 downsizing of 1,900

VANCOUVER – Canada’s largest Caterpillar heavy equipment dealer says it’ll cut 400 to 500 jobs from the global operations this year, on top of 1,900 which were announced this past year in 2 separate rounds of downsizing.

Vancouver-based Finning International Inc. – that also operates in South usa and also the Uk – says about 200 of the latest cuts are in Canada and the rest is going to be spread across its international operations.

Finning is grappling with the downturn in the gas and oil and mining industries, that are major people that use the heavy equipment sold and serviced by the company in Western Canada and abroad.

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It announced in November that it would lay off 1,100 people, or eight percent of its total workforce at the time, including 440 in Western Canada.

The company’s fourth-quarter results, which included the November announcement, showed revenue down 16 percent from the year earlier — to $1.52 billion from $1.8 billion.

Canada’s share of overall revenue was $698 million, down 26 percent from the year earlier. South American revenue fell 11 per cent to $526 million and revenue in the U.K. and Ireland was up 11 per cent to $294 million.

Finning reported a loss of $309 million or $1.82 per share during the last 3 months of 2015 compared with an income of $107 million or 62 cents per share in exactly the same period last year.

we are not safe from the challenges facing our customers across our key markets and geographies

Excluding one-time charges, Finning said it would have earned 23 cents per share in its latest quarter compared with an income 55 cents per share a year ago.

Finning president and CEO Scott Thomson said the organization have been in a position to generate relatively consistent earnings and funds flow by adapting to the conditions, enabling it to maintain its dividends.

“Notwithstanding this progress, we’re not safe from the challenges facing our customers across our key markets and geographies,” Thomson said in a statement.

He said Finning is on the right track to meet its plan to reduce general sales and administrative expenses permanently by $150 million also it expects further savings in the workforce reductions announced Thursday.