Revenue for the quarter was $77.1 million, down from last year’s record of $99.2 million. Sales of $250.7 million for the first nine months dropped from the $269.0 million reported in 2013. Sales for the quarter and year to date declined due to lower demand for agricultural equipment as a result of lower commodity prices.
|3rd quarter ending||9 months ending|
|June 30, 2014||Year Ago||June 30, 2014||Year Ago|
|Revenue (millions)||$77.1||$99.2||Revenue (millions)||$250.7||$269.0|
|Net profit (millions)||$1.1||$8.4||Net profit (millions)||$10.8||$18.1|
|Net profit/share||$0.04||$0.34||Net profit/share||$0.43||$0.72|
|Shares issued (millions)||25.0||25.0||Shares issued (millions)||25.0||25.0|
Net earnings of $1.1 million were down from the Company record third quarter of $8.4 million set in 2013. For the year to date net earnings were $10.8 million, among the best first three quarters in Company history and also down from the 2013 record year. Aside from the decreased sales levels, the Company saw increases in selling and research and development expenses as well as a decrease in gain on foreign exchange. These were partially offset by increases in gains in sales of surplus assets and decreased interest expenses. Earnings per share came in at $0.04 compared to $0.34 in the prior third quarter and $0.43 for the nine months ended June 30, 2014 compared to $0.72 in 2013.
The Company expects to see a decline in full year sales due to lower commodity prices. Commodity prices have declined and based on the current trend will result in lower 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 the fourth quarter which will 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 remainder of the year as inventory levels are projected to decline.
Contact: Willy Janzen, Chief Financial Officer
Phone: (204) 654-5718
Complete financial statement: http://www.buhlerindustries.com/investors/reports/buhler-2014-q3.pdf