Revenue for the quarter was $64.7 million, down from the record second quarter seen in the prior year of $104.8 million. Sales of $124.8 million for the first six months were also down from the prior year level of $173.6 million. Lower commodity prices and an unstable political environment in Eastern Europe has led to a decline in sales that has continued through the second quarter of 2015.
|2Q15||2Q14||2015 YTD||2014 YTD|
|Net Profit (millions)||$0.4||$5.0||$1.9||$9.7|
|Shares issued (millions)||25.0||25.0||25.0||25.0|
Net earnings for the quarter were $0.4 million, down from the $5.0 million reported in 2014. For the first six months, earnings were $1.9 million, a decline from the $9.7 million seen in the prior year. Gross margin has declined with the reduced sales levels, which was partially offset by reduced selling expenses. In the quarter, a gain on foreign exchange was offset by increased research and development spending. Earnings per share came in at $0.02 compared to $0.20 in the prior second quarter, and $0.08 for the six months ended March 31, 2015, compared to $0.39 in 2014.
Lower commodity prices have led to a broad decline in equipment sales. Export sales to Eastern Europe have also been negatively impacted by lower commodity pricing and general economic uncertainty in the region. The company continues to pursue new markets and new products such as the DeltaTrack tractors that have helped offset a softer machinery market. The company has made workforce adjustments that have resulted in reduced production levels. In turn, reduced production levels have led to improved cash flow as inventory levels have declined from the first quarter 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, however, the increased strength of U.S. dollar in 2015 will provide a partial offset to the declining margins.
The complete financial statement can be found here.