Revenue for the quarter was $76.7 million, surpassing last year’s record of $76.5 for a first quarter. Higher sales levels are due to continued strong demand for tractors, seeding and tillage.
|1st quarter ending December 31, 2013||Year ago|
|Net profit (millions)||$4.7||$3.3|
|Net profit / share||$0.19||$0.13|
|Shares issued (millions)||25.0||25.0|
Net earnings for the first quarter was $3.3 million, up $0.9 million in the previous first quarter. This was primarily due to a gain on foreign exchange and reduced selling and administrative expenditures offset by increased research and development expenditures. Earnings per share came in at $0.13 compared to $0.09 in the prior first quarter.
The Company remains cautiously optimistic about being able to repeat its last year’s sales record. Higher commodity prices continue to drive demand for agricultural equipment as customers upgrade their equipment. Commodity prices are projected to remain high as the world population continues to grow and the middle class in emerging markets change their consumption patterns.
Sales of the Company’s tractors, seeding and tillage equipment continue to have strong demand. The recent introductions of the combine, the new drill and cart and grain cart will provide additional sales during the year.
Research and development expenditures are expected to increase in 2013 as the Company continues to invest in new products and technologies. The Company expects to unveil two new products at shows during the second quarter.