Buhler Reports 2Q Earnings

Buhler Industries reported revenue for the quarter was $102.5 million, up $31.3 million, compared to last year (all funds are in Canadian dollars). Sales for the quarter were the highest ever recorded by the company in one quarter. Sales for the first six months were up from 2011, hitting $179 million, an increase of $53.9 million, also the best on record. The increase in sales is due to the strong overseas markets for tractors, strong demand for the sprayer line as well as the tillage lines introduced in 2011.

Gross profit came in at $16.3 million, up $6.6 million (68.0%) over the second quarter of 2011. For the six months ended March 31, gross profit was $28.6 million, up from $19.3 million (48.4%) for the same period in the prior year. As a percentage of sales, gross profit for the quarter was 15.9%, up from 13.6% in the second quarter last year, and up 0.6% to 16.0% for the six months ended. The increase in gross profit was due to higher sales volumes in the period.

Income from operations is $10.6 million, up $6.2 million from the second quarter in 2011. Selling and administration expenses increased to $5.7 million, up from $5.2 million in the same period last year. As a percentage of sales, selling and administration expenses are down to 5.5% from 7.3% for the quarter. For the six months ended March 31, 2012 expenses were up $1.9 million over the same period in the prior year, coming in at $11.2 million. Increased spending is a result of the acquisitions made during 2011 and having a full impact in 2012. As a percentage of sales, selling and administration expenses are down by 1.2% to 6.2% from the prior year level of 7.4%.

Net earnings came in at $4.2 million, compared to $0.4 million in the prior year’s second quarter. For the six months ended March 31, net earnings were $6.5 million, up from the prior year’s $0.9 million. Sales have increased sharply from 2011, resulting in a large increase in income from operations. With the recent acquisitions of the sprayer, seeding and tillage lines, interest and depreciation costs have increased.

Buhler Industries, Association member since 1972; buhler.com.