Torque Talk - John Deere feels the hurt

JOHN Deere has reported further weakness in its third quarter sales.

Net income attributable to Deere & Co. was $644 million, compared with $674m for the same period last year.

Company chairman and chief executive officer Samuel R Allen said the performance reflected the continuing affect of the global farm recession and difficult conditions in construction equipment markets.

Providing a snapshot, Mr Allen said Deere's worldwide sales of agriculture and turf equipment were forecast to decrease by about eight per cent for the fiscal year 2016.

Industry sales for agricultural equipment in the United States and Canada are forecast to be down 15-20pc for 2016, reflecting the affect of low commodity prices and weak farm incomes.

It will be most pronounced in the sale of higher horsepower tractor models.

Full-year 2016 industry sales in the EU28 countries are forecast to be flat to down 5pc, with the decline attributable to low commodity prices and farm incomes, including continued pressure on the dairy sector.

In South America, industry sales of tractors and combines are projected to be down 15-20pc, largely as a result of economic and political concerns in Brazil.

Asian sales are projected to be flat to down slightly, due in part to weakness in China.

Deere already has begun slowing down production to avoid a surplus of tractors and other agricultural equipment which is likely to be a story for all the majors, meaning supply for 2017 will be tighter.

Deere has warned that tractor production at its Waterloo plant will be cut through to at least October as the world's largest maker of farm equipment waits for used inventory levels to decrease at many of its dealerships.

So an astute forward order would be in order and there might be a jacket in it for you.

Classy awards

LANDPOWER founder Herby Whyte displayed his gregarious nature at the company's awards night in Christchurch, New Zealand, where he presented inaugural "Herby Awards" for excellence.

One of the three recipients was CLAAS Harvest Centre Esperance after-sales manager Wesley Stephens.

According to Herby, Wesley earned his Herby for showing exceptional leadership and maturity during a challenging year in WA.

"We've had all sorts of issues in Esperance over the past 12 months, including a change of ownership, a move to a new location, serious bushfires during harvest and then some necessary staff changes," Herby said.

"In the middle of this, we asked Wesley to step up to become workshop foreman.

"Wesley not only performed this role admirably, he quickly earned the respect of his team and proved himself to be a capable manager.

"He did the right things, the right way and at the right time by calmly and logically providing solutions to problems."

Well done Wesley.

Did you get a jacket?

New TMA chief

The Tractor and Machinery Association has appointed Gary Northover as executive director replacing Richard Lewis who has stepped down after more than six years in the role.

Mr Northover comes with a lengthy construction industry background having served 15 years as William Adams' general manager of rental Caterpillar business.

This incorporated the Cat Rental Store brands in Victoria and Tasmania and the Max Hire business in New South Wales and Queensland.

Before that he worked within Brambles Industries' Wreckair Hire business and most recently has been operating as a management consultant.

"It will pretty much be business as usual," Mr Northover said of his TMA appointment.

"My understanding is that Richard straightened things up nicely and I don't think there is a reason for great change.

"Initially it will be about getting on top of the work that needs to be done and understanding the interests and needs of all members.

"We'll also look to improve and widen the dissemination of the tractor and machinery sales statistics."

As for Richard?

"I'll be around somewhere," he said.

"This industry is too exciting to leave."

Versies to rescue

VERSATILE's limited edition Legendary series has been nominated as the reason for Buhler Industries' good third quarter results, which it released recently.

Revenue for the quarter was $89 million, up $8.1 from the prior year third quarter.

According to the company, demand for the Legend Versatile 4WD tractors has offset the weak commodity prices that continue to contribute to reduced sales levels.

The Versatile Legendary Limited Edition features historic red and yellow paint, special decals and pays tribute to 50 years of continuous 4WD tractor production.

The company says in its report that margin levels are still expected to be weak due to competition for equipment sales and the weaker Canadian dollar continues to have a significant affect, with parts purchased in United States dollars and with the majority of sales projected to be done in Canada during the year.

Apart from manufacturing Versatile tractors, Buhler Industries has Farm King and Versatile tillage (formerly Ezee-On) in its stable.

The company is still owned by Combine Factory Rostselmash Ltd (CFR).

CFR is a major combine manufacturer located in Rostov-on-Don, Russia.

New CLAAS Harvest Centre

A new CLAAS Harvest Centre (CHC) is scheduled to open in Northam later this year.

That's the word from CHC WA regional general manager Andrew Johnston, who had a chat with Torque at last week's Dowerin GWN7 Machinery Field Days.

"It will be a new base to expand our market share," he said.

"Importantly, it strengthens our ability to provide good service and parts back-up to existing customers.'

Andrew said the new Northam store would provide the full suite of products, including tractors and hay equipment and headers, tillage and seeding equipment.

"There's a lot of interest in our products and we are confident we can grow our market," he said."

Incidentally, hay demonstrations start soon and will include the new CLAAS Quadrant 5300 rectangular baler and CLAAS Axion 930 tractor.

If you want an on farm demo contact CHC territory manager James Moss on 0400 623 093.