In its latest earnings report, Kuhn Group reported net sales of $1,220.9 million in 2020, down 7.1% from $1,313.5 million in 2019. The company also reported order intake of $1,439.7 million in 2020, a 13.1% increase over $1,273.4 million in the previous year. Kuhn's order book came out to $655.1 million vs. $458.7 in 2020, a 42.8% increase.
The company stated the following in its press release:
"The agricultural machinery market proved resilient in the reporting period. Following months of uncertainty in the spring, a strong recovery set in at the middle of the year. In Europe and North America, market conditions in the dairy and livestock sector were generally satisfactory, owing to reasonable producer prices and government support. Europe’s arable sector suffered from smaller harvest volumes but was overall stable. Income among U.S. farmers increased significantly, thanks to generous direct payments. In addition, a strong rise in crop prices towards the end of the reporting period generated new optimism. The business situation in Brazil remained very good.
"Overall, order intake at Kuhn Group advanced substantially, which was partially attributable to low dealer inventories at the end of the season. The production sites in France were temporarily shut down in the spring, but the division was producing again at full capacity as of mid-May and was able to successively reduce the fall in sales over the course of the rest of the year. The effects of various short-term cost savings, especially lower prices for materials, should put the operating profit margin for 2020 at the same level as in 2019."
Kuhn Group anticipates a positive development in its most important markets, in particular in the arable sector owing to high crop prices. The dairy and livestock sector may be increasingly impacted negatively by rising feed costs. Overall, the division expects a moderate rise in sales for 2021. The operating profit margin is likely to be slightly higher, despite rising costs for materials.