Revenue for the quarter was one of the highest recorded by the Company, achieving $94.9 million, just off last year’s record setting second quarter of $102.5 million. Sales of $171.7 million for the first six months are also amongst the best in Company history, missing last year’s record of $179.0 million. The high levels of sales are attributable to the continued strong demand for tractors, seeding and tillage equipment.
| 2nd quarter ending March 31, 2013 | Year ago | |
|---|---|---|
| Revenue (millions) | $94.9 | $102.5 |
| Net profit (millions) | $6.4 | $4.2 |
| Net profit / share | $0.26 | $0.17 |
| Shares issued (millions) | 25.0 | 25.0 |
| 6 months ending March 31, 2013 | Year ago | |
|---|---|---|
| Revenue (millions) | $171.7 | $179.0 |
| Net profit (millions) | $9.7 | $6.5 |
| Net profit / share | $0.39 | $0.26 |
| Shares issued (millions) | 25.0 | 25.0 |
Net earnings of $6.4 million was the highest second quarter ever recorded by the Company and an increase of $2.2 million from the previous second quarter. For the first six months, earnings were a record $9.7 million, up 49.2% from $6.5 million seen last year. The increase in earnings was primarily due to the significant increase in gross margin as well as a gain on foreign exchange, offset by increased interest costs. Earnings per share came in at $0.26 compared to $0.17 in the prior second quarter, and $0.39 compared to $0.26 for the six months ended March 31, 2012.
Sales are projected to be slightly off last year’s record pace due to dry conditions experienced last summer and this year’s late spring start. Offsetting the weather conditions, the market is still experiencing higher commodity prices which continues to drive demand for agricultural equipment as customers upgrade their equipment.
The Company’s tractors, seeding and tillage equipment continue to have strong demand. The recent introductions of the combine, the new air drill and air cart and grain cart will provide additional sales during the year.
Research and development expenditures are projected to grow as the Company continues to invest in new products and technologies. This year, the Company unveiled its new DeltaTrack tractor at its dealer meeting. In addition, the Company released its new Row Crop tractor and 60 Foot Liquid Fertilizer Applicator during the year which will add to sales for the year.
Willy Janzen, Chief Financial Officer
Phone: (204) 654-5718
E-mail: wjanzen@buhler.com
Trading symbol: BUI