VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 9, 2009) - Finning International Inc. (TSX:FTT) announced today that it has realigned Canadian operations and reduced its workforce by 170 positions to improve profitability and advance strategic priorities. These job cuts impact staff at locations across its B.C. and Alberta operations. The company expects to take a restructuring charge of approximately C$4.5 million in the second quarter.
Since the fourth quarter of 2008, Finning has acted quickly to ensure its operations match what is happening in the economic environment. Globally, the company has had to take difficult, but necessary steps to reduce its overall workforce by approximately 8% while reallocating resources to growing areas of the business. To further improve operating efficiencies, the company has also implemented a number of additional cost savings initiatives. It is expected that the company's cost reduction measures will result in annual savings of approximately C$150 million.
The company also announced the realignment of executive positions to support continued good demand in the oil sands and growth in the customer support services areas of the business. Joining the Finning (Canada) operations is David Primrose as executive vice president of mining. Mr. Primrose has 20 years of experience gained across Finning's Canadian and U.K. operations, including in the oil sands and power systems, and was most recently senior vice president of corporate human resources. The company also announced the appointment of Andy Bone as executive vice president of product support and operations for Finning (Canada). Mr. Bone who moves from his current role as president of power systems has held several progressively senior management positions in his 29 year career with Finning. These appointments align executives with extensive operations experience to areas of continued strong demand and will support the company's successful execution of long-term strategic objectives.
"The changes we have made to our organization respond to changing market conditions and are designed to support our strategy and help achieve our long-term vision for Finning. We believe that this reorganization will strengthen our company so we can continue to invest in strategic initiatives to deliver results and be well positioned for future growth," said Mike Waites, President and CEO. "These are difficult decisions that were made after careful consideration of all options and we regret the impact on our employees. These measures will help us to maintain our industry leadership position."
Finning International Inc. is the world's largest Caterpillar equipment dealer. The company sells, rents and provides customer support services for Caterpillar equipment and engines in Western Canada, the U.K., and parts of South America. Headquartered in Vancouver, British Columbia, Canada, Finning International Inc. is a widely held, publicly traded corporation, listed on the Toronto Stock Exchange (symbol FTT). For additional information please visit www.finning.com.
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