The world’s leading tractor manufacturers are posting record profits this year, fueled by increases in the price of their equipment.
ohn Deere posted quarterly profit last Wednesday that slightly beat Wall Street estimates, with strong sales fueled by price increases for its farm and construction equipment.
Despite supply chain challenges, the world’s largest farm equipment maker reported a 75 percent increase in profit for the most recent quarter of its fiscal year and forecast higher net income for next year.
Operating profit for Deere’s construction and forestry equipment increased 53 percent year over year, while precision agricultural products saw the largest increase at 124 percent.
AGCO, the maker of well-known brands such as Massey Ferguson, Fendt and Valtra, announced that its third-quarter sales were approximately $3.1 billion, an increase of approximately 14.5 percent from the third quarter of 2021.
AGCO Chairman, President and Chief Executive Officer Eric Hansotia said that solid operational performance and continued strong pricing have weathered ongoing supply chain challenges, inflationary pressures and significant currency headwinds.
“Fundamentals of healthy farming support order boards that now stretch well into 2023 in some regions,” he added.
AGCO announced that net sales in its Europe/Middle East region increased by 10.6 percent in the first nine months of 2022 compared to the same period in 2021.
The improvement was driven by higher sales of tractors and parts, as well as “cheap” price promotions. Strong growth in France, Turkey, Central Europe and Scandinavia accounted for most of the increase.
Meanwhile, CNH Industrial, which owns the Case IH and New Holland brands, announced in its latest update in August that it just posted a record quarter of revenue, up almost 24 percent year-on-year.
Citing a mix of favorable volume, price realization, excellent operational execution and supportive product mix as reasons for the strong performance, it highlighted agriculture, which achieved a record 14.8 percent margin.
Sales of new tractors for the year to October in Ireland were 10 per cent lower than the same period in 2021, according to the FTMTA.
So far in 2022 around 2,067 new tractors have been registered in the Republic of Ireland compared to 2,305 units in 2021.
Cork continues to deliver the highest number of new tractor registrations with 303 units year-to-date, while Tipperary is second with 165 units, followed by Wexford with 141 units.
Earlier this year the Association of Farm & Forestry Contractors in Ireland said the rising cost of new machinery for contractors and their client farmers is affecting the sustainability of many farm contractors.
https://www.independent.ie/business/farming/machinery/tractor-makers-profits-take-off-after-price-hikes-42180630.html Tractor manufacturers’ profits decrease after price increases