Revenue for the year was $274.1 million, up $28.4 million from 2015. Demand for the Legendary Limited Edition tractors, introduced to commemorate 50 years of continuous four-wheel drive production, offset the weak commodity prices that continue to contribute to reduced sales levels for the Company. Year to date sales in North America have declined from prior years, particularly in the US.
Net Earnings Up for the Year
The net loss for the year was $2.7 million, an improvement of $2.6 million compared to the $5.3 million loss last year. A decrease in margin was the main driver of the loss, along with higher interest costs and research and development spending, partially offset by gains on the sale of surplus assets and increased gains on foreign exchange.
Sales for 2017 are expected to increase slightly compared to 2016 as the Company continues to pursue increases in market share, though lower commodity prices will continue to reduce demand for agriculture equipment. Margins are still expected to be weak due to aggressive competition. Inventory levels for the Company are expected to drop during the year and profitability from operations is expected to increase as a result of cost reduction initiatives. The weaker Canadian dollar continues to have a significant negative impact on the Company due to components and parts purchased in US dollars.