A continuing drop in overseas shipments has pressured the bottom line for Winnipeg farm equipment maker Buhler Industries in its latest quarter.
Buhler, which makes Versatile tractors and Farm King implements, on Monday posted a profit of $700,000 on $53.8 million in revenue in its second quarter (Q2) ending March 31, down from $4.6 million on a Q2 record of $93.4 million in the year-earlier period.
“Earnings have decreased due to the decrease in sales as well as increased spending on research and development,” the company said.
Sales for 2010 are still expected to be strong, reaching above average levels, although short of the company’s 2009 record, Buhler said in its release.
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Continuing strong sales of short-line equipment are offset by a reduction in overseas tractor sales, the company said.
Buhler’s Q2 activity included the February acquisition of bankrupt U.S. equipment maker Feterl Manufacturing’s facilities, for an undisclosed sum. Feterl’s shuttered plant in South Dakota is expected to give Buhler some added capacity to expand its Farm King grain handling equipment line.
Buhler late last year unveiled a new brand strategy in which all its various short-line ag equipment offerings are marketed under the Farm King brand, while its tractors will be branded Versatile.
