The Company achieved the third highest level in sales history. Revenues for the year were $325.5 million, surpassed only by the records set in 2012 and 2013. Demand for tractors, particularly the DeltaTrack units, continues to be strong. However, as anticipated, the decline in commodity prices has resulted in a reduction in sales.
|Year ending September 30, 2014||Year ago|
|Net profit (millions)||$12.5||$19.9|
|Net profit / share||$0.50||$0.80|
|Shares issued (millions)||25.0||25.0|
Net earnings were $12.5 million, down from the record $19.9 million of 2013. Decreased margins and increased selling and administration expenses were partially offset by gains on sale of excess property and equipment, as well as decreased interest expenses resulting from new financing agreements. Earnings per share came in at $0.50 compared to $0.80 in the prior year.
The Company expects to see a decline in 2015 sales due to lower commodity prices. Commodity prices have declined and based on the current trend will result in reduced farm income levels. Export sales to Eastern Europe have also dropped due to weaker commodity pricing and the political uncertainty in Russia and Ukraine. The Company continues to pursue new markets and products such as the new DeltaTrack tractors that have helped offset a softer machinery market. The U.S. dollar is expected to strengthen in 2015 and should offset some of the anticipated margin loss due to a higher level of competition for equipment sales.
The Company expects cash flow to improve throughout the year as inventory levels are projected to decline.