Rocky Mountain Dealerships last week released financial results for its quarter and year.
For the year, sales decreased by 26.3 percent compared to 2018 “due primarily to negative customer sentiment driven by unresolved trade disputes.”
Gross margin percentage increased from 13.5 percent to 14.3 percent as the sales mix shifted toward higher-margin parts and service sales.
For the quarter ending Dec. 31, sales decreased 26 percent “due primarily to declines in new and used equipment sales.” The declines reflect the continued weaker 2019 demand and the overall negative farmer sentiment across the Canadian prairies, the company said.
Gross margin percentage decreased by 1 percent for the quarter. Gross profit dollars decreased by 31.5 percent.
In the fourth quarter, “RME continued to respond to the challenging and ongoing macro-economic conditions swiftly and directly,” said President and CEO Garrett Ganden. “Throughout the year, we continued to focus on those business factors within our control, and that meant making some tough decisions.”
“By all measures, 2019 was a tough year,” Ganden said. “However, despite low overall sales in 2019, we brought total equipment inventories back in-line with year-end 2018.”
Source: Rocky Mountain