Buhler Industries (TSX:BUI), a Winnipeg-based maker of farm equipment, reports its net profits fell in the second quarter but revenues jumped by nearly a third.
The company said Friday it earned $0.4 million or two cents a share for the three months ended March 31, down from $0.7 million or three cents in the previous year.
Revenue for the quarter rose 31% to $70.5 million from $53.8 million.
For the six-month period, sales jumped to $122.7 million from $96.6 million and were among the best in Buhler's history — reflecting strong demand for tractors in Canada and abroad and a new line of sprayers the company began selling.
Net profits in the six months fell to $0.9 million from $2.1 million last year, when the company benefited from a one-time gain from a property sale.
Looking ahead, the company said sales should continue to grow but profits will be under pressure.
"Sales for 2011 are projected to be strong with the increased demand for tractors and sprayers," Buhler said in a release.
"In addition, the previously announced strategic alliance with Westeel and the recent acquisition of Ezee-On will contribute to sales growth in 2011. While sales are expected to be higher, profit will be impacted by the stronger Canadian dollar and higher steel prices."