Revenue for the quarter set a record of $100.1 million, surpassing last year’s record of $95.8 million. Sales of $271.7 million for the first nine months are just off last year’s record of $274.8 million. The high level of sales are a result of the continued strong demand for tractors, seeding and tillage equipment.
| 3rd quarter ending June 30, 2013 | Year ago | |
|---|---|---|
| Revenue (millions) | $100.1 | $95.8 |
| Net profit (millions) | $8.4 | $6.8 |
| Net profit / share | $0.34 | $0.27 |
| Shares issued (millions) | 25.0 | 25.0 |
| 9 months ending June 30, 2013 | Year ago | |
|---|---|---|
| Revenues (millions) | $271.7 | $274.8 |
| Net profit (millions) | $18.1 | $13.3 |
| Net profit / share | $0.72 | $0.53 |
| Shares issued (millions) | 25.0 | 25.0 |
Net earnings of $8.4 million is an increase of $1.6 million compared to the previous third quarter. For the first nine months, earnings reached $18.1 million, up 36.1% from last year’s $13.3 million for the same period. The increase in earnings was primarily due to the increase in gross margin, the gain on foreign exchange, and a decreased selling and administrative expenses, offset by increased interest costs. Earnings per share came in at $0.34 compared to $0.27 in the prior third quarter, and $0.72 compared to $0.53 for the nine months ended June 30, 2012.
Sales are projected to be off last year’s record pace due to dry field conditions experienced last summer and this year’s late spring in North America. Overseas sales are also forecast to be lower due to last year’s drought and slowing economic growth in Russia. Offsetting the weather conditions, the market is still experiencing high commodity prices which continue to drive demand for agricultural products as customers upgrade their equipment.
The Company’s tractors, seeding and tillage equipment continue to have strong demand. The recent introduction of the combine, the new air drill and air cart and grain cart will provide additional sales during the year. The Company’s balance sheet continues to improve. At the end of the third quarter shareholders equity ended at $179.0M or $7.16 per share. The Company’s cash deficit position at the end of the quarter was $3.2M compared with a cash deficit of $42.3M last year. To support future growth overseas, the Company negotiated an additional $20.0M line of credit with EDC.
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 show and will begin production starting in the fourth quarter. In addition, the Company released its new Row Crop tractor and 60 Foot Liquid Fertilizer Applicator during the year which will further add to sales.
Willy Janzen, Chief Financial Officer
Phone: (204) 654-5718
E-mail: wjanzen@buhler.com
Trading symbol: BUI