Winnipeg, Man. — Buhler Industries, manufacturer of the Versatile and Farm King brands of ag equipment, released its third quarter earnings for 2016 on Aug. 15.
Revenue for the quarter was $87.1 million, up $8.0 million from the prior year third quarter. Revenue for the first nine months of 2016 was $204.4 million, up $0.5 million from the same period of 2015. Demand for the limited edition Legend series of tractors has offset the weak commodity prices that continue to contribute to reduce sales levels for the Company. Year to date, sales in North America have declined from the prior years, particularly in the U.S.
Net earnings of $3 million were up from earnings of $0.3 million for the third quarter of 2015. For the year to date, net earnings were ($4.1) million, down from $2.2 million in the prior year. Contributing to the increased earnings for the quarter was a $2.4 million gain on sale of surplus property as well as improved margin. For the year to date, the decrease is principally due to the decreased margin, offset by increased gains on sale of surplus property year.
Sales for the remaining part of the year are expected to be slightly off 2015 levels, as demand for agricultural equipment continues to be down resulting from lower commodity prices. Profitability for the year is projected to be improved over 2015 levels mostly due to sales of surplus assets. Company inventory levels are being adjusted to reflect the reduced demand and will to continue to drop in 2016, contributing to increased cashflow. 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 U.S. dollars and with the majority of sales projected to be done in Canada during the year.