Winnipeg, Manitoba
May 14, 2014
Sales
Revenue for the quarter was the highest recorded by the Company, achieving $104.8 million, up $10.8 million from last year. Sales of $173.6 million for the first six months are also amongst the best in Company history, surpassing the $169.8 million from the prior year. The high levels of sales are attributable to the introduction of the new DeltaTrack tractors and continued strong demand for tractors.
2nd quarter ending 6 months ending
March 31, 2014 Y e a r A g o March 31, 2014 Year Ago
Revenue (millions) $104.8 $94.0 Revenues (millions) $173.6 $169.8
Net profit (millions) $5.0 $6.4 Net profit (millions) $9.7 $9.7
Net profit/share $0.20 $0.26 Net profit/share $0.39 $0.39
Shares issued (millions) 25.0 25.0 Shares Issued (millions) 25.0 25.0
Net Earnings
Net earnings of $5.0 million were amongst the best second quarters recorded by the Company. For the first six months, earnings were $9.7 million, consistent with 2013. Increases in gross margin were primarily offset by increased selling expenses. A small loss on foreign exchange in the quarter was offset by reductions in interest expense and a gain on disposal of surplus assets. Earnings per share came in at $0.20 compared to $0.26 in the prior second quarter, and $0.39 for the six months ended March 31, 2014 and 2013.
Looking Forward
The Company expects to see a slight decline in third and fourth quarter sales due to higher tractor inventory located at machinery dealers in North America as reported by the Association of Equipment Manufacturers. In addition, grain and corn prices have dropped from 2013 creating some uncertainty for farmers as they wait to see what commodity prices will be in the fall.
Export sales to Eastern Europe are also expected to decline due to political uncertainty in Russia and Ukraine. The Company continues to pursue new markets and products such as the new DeltaTrack tractors have helped offset a softer machinery market. In addition, the Company has been helped by a weaker Canadian dollar which has helped margins and increased sales as reported in Canadian dollars.
The Company expects cash flow to improve throughout the remainder of the year as inventory levels decline. The Company has established a new $100 million line of credit with The Bank of Montreal and The Bank of Nova Scotia and has a $20M line with Export Development Canada.
Contact: Willy Janzen, Chief Financial Officer
Phone: (204) 654-5718
E-mail: wjanzen@buhler.com
Complete financial statement: http://www.buhlerindustries.com/investors/reports/buhler-2014-q2.pdf
Trading symbol: BUI