By Stephen Nakrosis

Finning International, the world's largest Caterpillar dealer, said growing demand for copper is underpinning its outlook for Chile, while its outlook for Western Canada is mixed.

On the South America outlook:

Finning said in Chile it is seeing "growing global demand for copper, strong copper prices, capital deployment into large-scale brownfield expansions, and customer confidence to invest in brownfield and greenfield projects." It added it is also seeing "a broad-based level of quoting, tender, and award activity for mining equipment, product support, and technology solutions."

While activity levels and outlook remain positive, Finning said it is expecting a more challenging environment when attracting and retaining qualified labor.

The company also said it expects demand from large contractors supporting mining operations, with infrastructure construction activity remaining steady.

Finning said it continues to take a low-risk approach in Argentina. However, at the same time, it is positioning itself to capture opportunities, particularly in the oil and gas and mining sectors, it said. "The operating environment remains dynamic, and we continue to closely monitor the government's new rules and policies, some of which are helping drive large-scale investment."

On the Western Canada outlook:

Finning said it has a mixed outlook for Western Canada, as it expects large customers to continue practicing spending discipline as they work to achieve operating cost targets. However, these customers are expected to renew, maintain, and rebuild aging fleets going forward, the company said.

While ongoing commitments from federal and provincial governments and private sector projects will support activity in the construction sector, it is expected these projects will take time to advance, Finning said.

The company also said it sees opportunities for its power systems business in the face of growing demand for reliable, efficient and sustainable electric power solutions across communities in Western Canada.

On UK and Ireland operations:

Demand in the U.K. construction sector is expected to remain soft, Finning said.

"In power systems, quoting activity remains strong, driven by healthy demand for primary and backup power generation, particularly in the data center market," the company added.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

February 04, 2025 18:16 ET (23:16 GMT)

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