Finning Provides Update on ERP System Implementation in Canadian Operations

press release

Oct. 14, 2011, 11:42 a.m. EDT

Finning Provides Update on ERP System Implementation in Canadian Operations

VANCOUVER, BRITISH COLUMBIA, Oct 14, 2011 (MARKETWIRE via COMTEX) -- Finning International Inc. /quotes/zigman/17253 CA:FTT -3.00% today provided an update on its enterprise resource planning (ERP) system implementation in Canada, as well as a projection of the expected third quarter financial impact of that implementation and the five-week strike in B.C.

As previously disclosed, following the launch of its new ERP system in Canada on July 4, the Company experienced implementation issues affecting parts supply, warehousing and distribution operations. Finning's Canadian operations have tested and deployed a series of application changes to improve the functionality and reliability of the system to process and distribute parts to customers. With improved functionality in the application, the next phase of work will focus on enhancing user proficiency and introducing controlled system improvements to achieve greater efficiency over time.

The combined impact of the strike and ERP system implementation on revenues and additional system support costs is expected to be a reduction in earnings per share in the range of 20-25 cents in the third quarter of 2011. The ability to process parts orders has grown considerably since go-live and the Company expects fourth quarter parts activity levels to be substantially improved and approaching normal volumes.

"We are extremely grateful to our customers for their patience and apologize for the inconvenience this has caused. We, at Finning, are committed to maintain our customers' loyalty. I also wish to extend my sincere appreciation to our employees for their extraordinary efforts and dedication during the implementation," said Mike Waites, president and CEO of Finning International.

"The ERP platform will drive operational excellence and support our long-term growth objectives. We are confident that the new system will enable us to provide the highest levels of service for which Finning is renowned. Specifically, the new system significantly improves our capacity for planning, service scheduling, and forecasting capabilities, as well as many other facets of the business and will support our strong growth plans into 2012 and beyond," concluded Mr. Waites.


Contacts: Finning International Inc. Mauk Breukels Vice President, Investor Relations and Corporate Affairs (604) 331-4934 mauk.breukels@finning.com www.finning.com

SOURCE: Finning International Inc.

mailto:mauk.breukels@finning.com http://www.finning.com