Canadian farm machinery manufacturer Buhler Industries has taken a revenue hit in 2014 with numbers down almost CA$80 million on the previous result.
Buhler, manufacturers of Versatile tractors (distributed in Australia by PFG) and Farm King implements and augers, has reported a revenue fall of CA$79.8 million in the financial year ending September 2015 down to CA$245.7 million from the CA$325.5 million in 2014.
The results saw a net loss of CA$5.3 million recorded compared to the CA$12.5 million profit registered in 2014.
The company said weak commodity prices and the unstable political environment in Eastern Europe contributed to reduced sales levels.
“Sales in Canada were flat over 2014, whereas sales to the US and Eastern Europe have declined significantly.”
The company expects weak demand for agricultural equipment in 2016 “as a result of lower commodity prices and this will continue to have an unfavorable impact on Buhler sales and profitability in 2016".
“Export sales to Eastern Europe have also been negatively impacted by lower commodity pricing and general economic uncertainty in the region.”
Inventory levels have also dropped and expected to drop again in 2016 while margins are expected to be lower due to lower sales and production volumes.
Buhler forecasts increased competition for equipment sales leading to lower margins due to additional sales programs being required.
The Winnipeg-based company is 80 per cent owned by Russian harvester manufacturer Rostselmash Ltd.