The maker of Versatile tractors and Farm King equipment says the supply chain issues that have pressured its quarterly bottom line have begun to clear.
Winnipeg-based Buhler Industries on Aug. 14 reported net income of $16.1 million on $67.6 million in revenue for its second quarter ending June 30, up from $1.1 million on $57.8 million in the year-earlier Q2.
Buhler said it “achieved higher sales as it begins to see improvements in the supply chain issues experienced over the last two years.”
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The company said it also expects increased sales during the rest of 2023, on a “large backlog of sales (and) strong demand for agricultural machinery and equipment.”
Buhler in its second quarter also booked its revenue from the sale of its tillage equipment manufacturing plant at Vegreville, Alta., which it shuttered in 2021. The company closed on the sale of the former Ezee-On plant in April.
The Q2 ledger also includes proceeds from the sale of Buhler’s property at Woodstock, Ont. — on which it has exercised an option to lease back for up to five years.
Buhler said in April that the combined net proceeds from those plus the sale of its property at Fargo, N.D., which it booked separately in its first quarter, came in at $24.3 million. In its Q2 report, it logged the combined Vegreville and Woodstock sales as a gain on disposal of assets valued at $12.4 million.
The company said in July that the sale of those “underutilized assets” has helped it to secure “sufficient capital for current operational needs” — but it also announced at the time it has hired a Toronto firm, Origin Merchant Partners, to identify a new “long-term investment partner” for Buhler.
Buhler said in July it “seeks to bolster its position in the agricultural industry and continue its commitment to serving farmers and dealers with high quality farm equipment.”
The company didn’t say what its future plans would be if a new investment partner is brought on board. It said its “search for the right investment partner is driven by a commitment to preserving the legacy of the iconic Versatile and Farm King brands.”
Buhler also said it wants a partner “who understands and respects the historical significance of these brands, as well as their immense potential for future growth and innovation.”
Shares in Buhler today are about 97 per cent owned by Russian farm equipment firm Rostselmash, while the remaining three per cent are publicly traded and held by employees and other investors. A Buhler representative wasn’t available for comment this week. — Glacier FarmMedia Network
