Revenue for the quarter was $79.1 million, up from last year’s $77.1 million. Sales of $203.9 million for the first nine months dropped from the $250.7 million reported in 2014. Sales for the quarter and year to date declined due to lower demand for agricultural equipment as a result of lower commodity prices and the unstable political environment in Eastern Europe.
| 3rd quarter ending June 30, 2015 | Year ago | |
|---|---|---|
| Revenue (millions) | $79.1 | $77.1 |
| Net profit (millions) | $0.3 | $1.1 |
| Net profit / share | $0.01 | $0.04 |
| Shares issued (millions) | 25.0 | 25.0 |
| 9 months ending June 30, 2015 | Year ago | |
|---|---|---|
| Revenues (millions) | $203.9 | $250.7 |
| Net profit (millions) | $2.2 | $10.8 |
| Net profit / share | $0.09 | $0.43 |
| Shares issued (millions) | 25.0 | 25.0 |
Net earnings of $0.3 million were down from the Company’s third quarter of 2014 of $1.1 million. For the year to date net earnings were $2.2 million, down from the $10.8 realized in the prior year. The decline in net earnings was largely attributed to the decline in gross margin coupled with increased foreign exchange losses. Earnings per share came in at $0.01 compared to $0.04 in the prior third quarter and $0.09 for the nine months ended June 30, 2015 compared to $0.43 in 2014.
Demand for large agricultural equipment, in particular tractors and sprayers, remains soft as a result of lower commodity prices which will continue to have an unfavorable impact on the Company’s sales and income in 2015. Export sales to Eastern Europe have also been negatively impacted by lower commodity pricing and general economic uncertainty in the region. The Company has made workforce adjustments that have resulted in reduced production levels. In turn, these reduced production levels have led to improved cash flow and reduced debt load as inventory levels have declined from 2014 year end levels and are expected to decline throughout the remainder of the year. Gross margin and operating margin are expected to be lower due to lower sales and production volumes. In addition, increased competition for equipment sales will lead to lower margins due to additional sales programs being added, however, the increased strength of U.S. dollar in 2015 will provide some relief to the declining margins.
Willy Janzen, Chief Financial Officer
Phone: (204) 654-5718
E-mail: wjanzen@buhler.com
Trading symbol: BUI