Rocky Mountain Dealerships Inc. recently reported its financial results for the three months ended March 31. Unless otherwise stated, all amounts are expressed in Canadian dollars.
Sales decreased 24.7 percent, or $44 million, compared to the same quarter last year, due primarily to declines in new equipment sales driven by the company’s intentional limiting of these sales to reduce trade-ins, undelivered equipment sales from the OEM, and farmer hesitation.
Gross profit dollars mirrored the sales decline, coming in 24.5 percent lower compared to the same period in 2019.
“Operationally, the first quarter was Canada’s fourth under China’s canola embargo while rail protests also disrupted grain shipments and farmers’ cash-flows,” said President and CEO Garrett Ganden. “Our equipment sales are down, as would be expected with those headwinds, but we are pleased to note our product support activities held steady and even increased a little despite a later start to seeding this year relative to 2019.”
COVID-19 also impacted first quarter operations.