Kuhn Forecasts Good Year

After three difficult years, Kuhn, which is the largest business unit of the Swiss engineering group Bucher Industries, sees “a clear recovery.”

Bucher CEO Jacques Sanche reported a 13.5 percent gain in net sales from 2016 to 2017. The increase includes adjustments for currency.

“As farmers in Europe resumed investing in new machinery and dealers built up their inventories, we saw a 22 percent increase in order intake year-over-year and a near 16 percent increase—before currency adjustments—in net sales,” Sanche said.

In Europe in particular, demand for hay and forage harvesting machinery, as well as for livestock bedding and feeding, increased in response to higher farmgate prices for meat and milk. Although prices for these commodities have fallen back in some European markets, Kuhn managers are optimistic that conditions will continue to improve in the dairy and other livestock sectors.

Kuhn expects the rebound to take longer in North America due to low farm incomes. The company also said arable sector prospects are marred by high equipment inventories and relatively easy harvests. It expects continuing sales growth and improved profits in 2018.

Source: Farm Equipment

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