Buhler's F2005 annual revenues declined by 2%, mostly influenced by a further 10 cent decline in the US dollar throughout the year. As 75% of the Company's revenue is in US currency, meeting the revenue goals became increasing difficult as the US dollar continued to weaken throughout F2005. As forecast, gross margin showed quarter over quarter improvement. Our goal of a 16% - 18% annual gross margin was exceeded and we are pleased to report a gross margin of 18.3%. Sales of the Company's short line products including grain augers, compact implements and front-end loaders grew almost 9% in Canada and US. Sales outside North America also increased and now accounts for over 15% of the company's total revenue. Revenue from tractor sales inside North America decreased largely due to the declining US dollar, but also due to reduced demand as customers anticipated the release of our new, higher horsepower series of tractors. These products are now being delivered to the marketplace. We are proud to be able to meet the tractor needs of the largest farms in the world with tractors, which now range up to 535 hp. Steel prices moderated during the year, but continue to show signs of instability. The US dollar continues to show signs of further decline. As such, we are forecasting flat revenue and a slight improvement in gross margin resulting in slightly improved EPS for F2006.
| Year ending September 30, 2004 | Previous year | |
|---|---|---|
| Revenue | $202,319,000 |
$206,130,000 |
| Net profit | $9,566,000 |
$12,049,000 |
| Net profit / share | $0.38 | $0.50 |
| Shares issued (millions) | 25.0 | 24.3 |
Revenue for the 4th quarter was $34.3 million compared to $43.5 million last year.
Earnings for the 4th quarter were $1.2 million compared with $1.7 million last year.
Revenue for the year was $202.3 million compared to $206.1 million last year.
Earnings for the year ending September 30th, 2005 were $9.6 million compared with $12.0 million last year. Gross profit was $37.0 million (18.3% of sales) for 2005 compared to $37.6 million (18.2% of sales) last year. The number of shares outstanding at year-end was 25 million.
The Company increased its annual dividend from $0.14 to $0.15 per share. The dividend is payable January 13th, 2006 to shareholders of record on December 2nd, 2005. This is the 13th consecutive increase in dividends.
Craig Engel - President
Phone: (204) 228-6206
E-mail: cengel@buhler.com
Trading symbol: BUI