Buhler Industries Reports 3Q Earnings

Buhler Industries, Winnipeg, Manitoba, reported that revenue for the company’s third quarter set a record of (Canadian dollars) $100.1 million, surpassing last year’s record of $95.8 million. Sales of $271.7 million for the first nine months were off last year’s record of $274.8 million. The high level of sales are a result of the continued strong demand for tractors, seeding and tillage equipment.

Net earnings of $8.4 million is an increase of $1.6 million compared to the previous third quarter. For the first nine months, earnings reached $18.1 million, up 36.1% from last year’s $13.3 million for the same period. The increase in earnings was primarily due to the increase in gross margin, the gain on foreign exchange, and a decreased selling and administrative expenses, offset by increased interest costs.

Sales are projected to be off last year’s record pace due to dry field conditions experienced last summer and this year’s late spring in North America. Overseas sales are also forecast to be lower due to last year’s drought and slowing economic growth in Russia. Offsetting the weather conditions, the market is still experiencing high commodity prices which continue to drive demand for agricultural products as customers upgrade their equipment. The company said their tractors, seeding and tillage equipment continue to have strong demand. The recent introduction of their new combine, air drill, air cart and grain cart will provide additional sales during the year, the company said.

Buhler, Association member since 1972; buhler.com.