Rocky Mountain Dealerships Inc. has reported its financial results for the quarter ended June 30.
Sales decreased by 35.7 percent compared to the same quarter last year, due primarily to declines in new and used same-store equipment sales. Gross profit as a percentage of sales improved to 15.3 percent compared to 12.6 percent for the same period in 2018. Operating SG&A (selling, general, and administrative expenses) decreased by 11.6 percent.
“The second quarter of 2019 was difficult, and from a business perspective reminiscent of the spring of 2015, but for very different reasons,” said President and CEO Garrett Ganden. “Many of the fundamentals that drive our industry are moving in the right direction. Rain across much of the prairies has provided good moisture, and forecasts indicate that crop production and yields are going to be better year over year.
He said that while “some industry fundamentals remain solid, unfortunately, political and macroeconomic issues continue to create significant uncertainty for Canadian farmers and our business. The
inability of the Canadian government to make meaningful progress toward improving international trade relations with several key partners only exacerbates this uncertainty.”
Notwithstanding current macroeconomic headwinds, Rocky Mountain believes the long-term fundamentals underlying the Western Canadian agriculture market remain strong.
Source: Rocky Mountain Dealerships