Sales of “non-core assets” helped boost the year-end bottom line for Winnipeg farm equipment maker Buhler Industries, which on Tuesday reported higher net profit on lower sales for 2007.
The company, which sold itself in 2007 to Russia’s Combine Factory Rostselmash, posted $8.01 million in net profit on $166.2 million in revenues, up from $4.58 million on $175.1 million in 2006.
The higher profits came partly from sales of assets such as land, a parkade and a subsidiary, BMW MachineWorks, which Buhler sold in May to Canadian Tool and Die for an undisclosed sum.
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The company noted that its gross margin continued to decline as the U.S. dollar continued to weaken, but the company was able to cut expenses including general costs, interest and depreciation, and also save on taxes due to a loss in one of its divisions.
“The industry is projecting higher tractor sales in the next year and we expect our volumes to increase in part due to stronger demand in the tractor industry,” the company said, noting that its new owner has established sales networks in Russia, Ukraine and Kazakhstan.
Dmitry Lyubimov, the company’s new president, said in its annual report that the main market for its Buhler Versatile tractor line will continue to be North America, while the company will “continue to promote growth” in the former Soviet Union.
Konstantin Babkin, president of Rostselmash’s Russian parent company, reiterated that Rostselmash hopes to introduce its Russian-made combines to North American farmers through the Buhler dealer network.
Buhler’s other ag equipment operations include the Allied, Farm King and Inland brands.
