Revenue for the quarter was $47.1 million, an improvement of $10.8 million over the first quarter of 2016. Weak commodity prices continue to contribute to reduced sales levels for the Company. Sales in North America have returned to near historical levels, although sales in the US are still lower than normal. Sales to Eastern Europe have remained steady.
|1st quarter ending December 31, 2016||Year ago|
|Net profit (millions)||($2.4)||$8.7|
|Net profit / share||($0.10)||$0.35|
|Shares issued (millions)||25.0||25.0|
The net loss for the quarter was $2.4 million, an improvement of $6.3 million compared with last year’s first quarter loss of $8.7. This improvement was mainly driven by the increased margin, gain on sale of excess assets and gains on foreign exchange, offset by increased selling and administration, interest and research and development costs.
Sales for 2017 are expected to be up slightly over 2016 sales. Demand for agricultural equipment continues to be slow resulting from lower commodity prices. Dealer inventory levels are down from last year which will create opportunities when demand for new equipment increases. The Company continues to pursue increases in market share of agricultural equipment. Profitability from operations is expected to increase during the year resulting from actions taken by the Company to reduce cost. Margin levels are still expected to be weak due to competition for equipment sales and the weaker Canadian dollar that continues to have a significant negative impact on the Company with parts purchased in US dollars.