Buhler Industries Inc. reports 3rd quarter earnings
Winnipeg, Manitoba
July 23, 2001
Winnipeg, Manitoba, July 23rd 2001: Buhler Industries Inc. (TSE: BUI) today reported 3rd Quarter earnings of $2.2 million or $0.09 per share on revenues of $48.6 million. “There are enormous challenges in the farm market right now, however, we are confident that the market will improve and that Buhler Industries will be there with a strong product line when it does” said Buhler President & Chief Operating Officer Craig Engel.
Buhler Versatile Inc., a wholly owned subsidiary of Buhler Industries Inc., has been unable to realize the full potential of the acquisition of the Versatile and Genesis tractor lines due to a continuing strike/lockout at the facility.
| 3 months to June 30, 2001 | Previous year | |
| Revenue Net profit Net profit/share |
$48,624,000 $2,150,000 0.09 |
$116,700,000 $7,298,000 0.09 |
| 9 months to June 30, 2001 | Previous year | |
| Revenue Net profit Net profit/share |
$142,206,000 $6,033,000 0.25 |
$67,216,000 $4,646,000 0.19 |
| Condensed Consolidated Balance Sheet | |||
| As at June 30, 2001 | |||
| Current assets Capital assets Other assets Total assets |
$91,220 $38,833 $2,121 $132,174 |
Current liabilities Long term debt Deferred income taxes equity Total liabilities and equity |
$42,132 $31,850 $845 $132,174 |
| *Non-interest bearing 13 year loan. | |||
Strike/Lockout at Buhler Versatile Inc. (BVI)
To date, efforts to resolve the 8-month-old labour dispute have not produced a resolution. The union filed two complaints with the Manitoba Labour Board as a result of bargaining with the BVI. The Labour Board issued a ruling in early June indicating that the BVI had not bargained in good faith. The Board will hold hearings in August of this year to hear arguments on the second complaint. The union is seeking in excess of $18 million in damages. BVI maintains that it was honest and forthright with the union during negotiations and has at all times bargained in good faith. Early in the strike, the union refused BVI’s offer of binding arbitration. This refusal by the union resulted in BVI losing a profitable contract to produce the TV-140 tractor for CNH Global. The loss of this contract will result in permanent job losses at the facility. Reduced production has continued at the factory with management and replacement workers. BVI is currently continuing to supply Genesis series tractors for sale and distribution through the CNH network.
Outlook
The farm market continues to struggle with low grain prices and the Company will continue to provide low cost, high quality products to meet the farmer’s needs during these trying times. Sales for the traditional products of the Company in the Allied, Farm King and other divisions are anticipated to remain strong through the next five quarters. Management believes that future earnings will remain flat or slightly higher.
Contact
Craig Engel - President
Phone: (204) 228-6206
E-mail: cengel@buhler.com
Trading symbol: BUI