The Company saw another excellent quarter for revenues, coming in at $68.9, surpassed only by the record first quarters enjoyed in 2011 and 2012. Demand continues to be strong 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 were $4.7 million, up $1.4 million in the previous first quarter. This was primarily due to improved profit margins and a gain on foreign exchange, offset by increased research and development expenditures. Earnings per share came in at $0.19 compared to $0.13 in the prior first quarter.
The Company expects to maintain it's 2013 sales level in 2014. A number of factors are contributing to the modest forecast. Export sales are expected to grow partially due to a weaker Canadian dollar and by actively pursuing new markets. New Versatile products such as the DeltaTrack and updated row crop front-wheel assist tractors introduced last year are gaining momentum into 2014. In addition, the new line of Farm King liquid fertilizer applicators is rapidly gaining market acceptance. Offsetting the sales growth above are higher levels of tractor inventory at dealers (as reported by the Association of Equipment Manufacturers) combined with lower crop prices resulting from high crop yields.
The Company expects cash flow to improve throughout the remainder of the year as inventory levels decline. The Company is working on increased financing to be put in place in 2014 as it continues to plan for its future growth.