Finning Provides a Corporate Update
VANCOUVER, British Columbia, March 20, 2020 (GLOBE NEWSWIRE) -- Finning International Inc. (TSX: FTT) announces business continuity measures in response to COVID-19 and related market
In response to the COVID-19 pandemic and global market volatility, we have activated robust business continuity plans to minimize disruptions to our business and adapt to evolving market conditions. Our top priority is the health and safety of our staff, customers, and the communities in which we operate. We have taken appropriate precautions in this regard while continuing to deliver products and services to meet our customers’ needs. To that end, we are following the advice of health authorities in each jurisdiction where we operate. Globally, we have implemented social distancing, team separation, and extensive work from home initiatives, as well as eliminated all travel not related to critical logistics and field operations.
We remain well-positioned to serve customers through a number of channels, including online at parts.cat.com, our ongoing branch operations, call centres, dropboxes and other flexible delivery alternatives. With the full support of Caterpillar, our global supply chain is functioning well, with minimal disruptions to date and global continuity plans in place. Our branch operations currently remain open in each region, parts warehouses are operating, and we continue serving customers at their sites. As conditions evolve, we will adjust our plans in line with our business continuity protocols, with employee, customer and community health and safety as our highest priority. We recognize, however, that the effects of the COVID‑19 pandemic and government or customer actions to respond could ultimately be materially disruptive for Finning.
We are in a strong financial position, with access to capital, including our $1.3 billion global credit facility which is committed through 2024, as well as a balanced debt maturity profile and capacity to increase capital availability in each of our regions.
We are taking significant actions to control what we can, particularly our costs and capital investments. We are starting with our leadership team, whose salaries will be reduced effective April 2020 by 20% for our CEO, 12% for our senior leadership team and 7% for SVPs and VPs. We have also implemented strict cost containment measures throughout the organization, including freezing recruiting activities and minimizing all discretionary costs. We are taking proactive measures to actively control working capital investments and minimize capital and rental expenditures to mission-critical maintenance and IT capital only. We are confident these additional measures will augment our ongoing emphasis on maximizing EBITDA to free cash flow conversion, which will further strengthen our balance sheet.