Finning International Inc increased second quarter sales 8% to a record CAD861.1 million (USD622.8 million), up from the CAD797.4 million (USD576.7 million) in Q2 in 2002.

"Finning delivered record second-quarter revenue and strong bottom-line performance while continuing our strategy of growing through accretive acquisitions by completing the acquisition of Lex Harvey Ltd in the UK," Finning president Doug Whitehead said.

"Economic conditions in our markets are improving at a modest pace, and we remain confident in our outlook for the balance of 2003."

Finning is starting to integrate the Lex Harvey business and assets into Finning UK's materials handling division. The combination would form one of the UK's largest materials handling businesses, with 16,000 machines and more than 1,300 employees, the company said.

Despite the record revenue, CAD5.1 million (USD3.7 million) in pre-tax expenses affected net profit, which fell from CAD34.7 million (USD25.1 million) to CAD32.2 million (USD23.3 million).

Mr Whitehead said Finning had "excellent" medium to long-term prospects, based on recent developments, including a 20-unit sale closed this month by Finning's Chilean operation.