Buhler records small loss

Versatile tractor maker records small loss


Machinery
Russian owned Canadian ag equipment manufacturer, Buhler Industries experienced tough going in 2015/16 on the back of low commodity prices.

Russian owned Canadian ag equipment manufacturer, Buhler Industries experienced tough going in 2015/16 on the back of low commodity prices.

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Buhler Industries, maker of Versatile tractors books loss

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Canadian based, Russian owned agricultural machinery manufacturer, Buhler Industries has recorded a small loss for the past financial year with sales of special edition Versatile tractors helping to offset lower demand from weak commodity prices.

The company, 80 per cent owned by Russian harvester manufacturer Rostselmash Limited, manufacturers Farm King, Allied, Inland and the Versatile tractor range in factories across Canada and the US.

The company recorded improved revenue for the year ending September 2016 - C$274.1 million compared to C$245.7 million in the same period 2015, but booked a net loss of C$2.7 million attributed to higher interest costs and spending on research and development.

Buhler said demand for a line of limited edition 50th anniversary tractors offset sales levels affected by low commodity margins.

Buhler expects 2017 sales to increase slightly compared to the past financial year but expects the “lower commodity prices will continue to reduce demand for agriculture equipment”.

The company is also expecting competition to remain aggressive having further impact on margins.

A weaker Canadian dollar against the US currency is also expected to take a toll with many components purchased in US dollars.

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