Farm and commercial grain storage equipment manufacturer Ag Growth International lived up to its name in 2017 by recording increased sales and profitability as the farm sector in North America improved and the Canadian group continued to gain ground in export markets further afield.
For the first quarter of 2018, AGCO raked in $2 billion in net sales, a 23.3% increase compared to the same 3 month period the year prior. And with the stage set, the company expects sales to reach around $9.3 billion by the year’s end.
North American large ag equipment unit sales were mixed in April, with overall unit sales up 2% year-over-year. Both U.S. and Canada had growth in combine sales (U.S. +59%), but that was partially offset by declines in 4WD tractors (Canada –28%) and row-crop tractors, according to the latest numbers released by the Assn. of Equipment Manufacturers.
Sonalika International Tractors Limited (ITL), one of India’s leading tractor manufacturers, recorded an increase of 22% in tractors sales to 100,000 units in fiscal year 2018. This compares to 81,531 units registered in the previous year, which was an increase of 19.6%.
With particular focus on tine and short disc cultivators for fast, shallow tillage, Lemken’s operations in the U.S. and Canada, based in West Fargo, N.D., and St-Hyacinthe, Que., respectively, recorded double-digit sales growth in 2017.
A noteworthy 12.6% increase in 2017 sales turnover was posted by German agricultural equipment manufacturer Amazone and managers say market indicators give them confidence to predict further growth this year.
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In this week’s episode, we discuss improvements in dealer sentiment at the end of 2019 as well as producers likelihood to purchase farm equipment. From the Precision Farming Dealer Summit in St. Louis this week, Technology Editor Jack Zemlicka reports on how dealers can serve as consultants to their customers, particularly when it comes to technology. Also in this episode: Buhler Industries' revenues drop 25.7%, the Dallas Fed reports 4Q ag loan demand declines and farmland values are likely to hold steady in 2020.