Buhler posts loss on the year

Buhler Industries posted a net loss of $2.7 million on revenue of $274.1 million in the year ending Sept. 30, 2016.

That was an improvement over last year when the farm equipment maker lost $5.3 million on revenue of $245.7 million.

The company said lower margins were the main driver of the loss, along with higher interest costs and research and development spending, the company said in a release.

This was partially offset by gains on the sale of surplus assets and increased gains on foreign exchange

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Sales for 2017 are expected to be up slightly over 2016, the company forecast.

Inventory levels are expected to drop slightly during the year. Demand for agricultural equipment continues to slow because of lower commodity prices.

Profits should edge higher as manufacturing costs are trimmed, but margin levels are still expected to be weak because of competition for equipment sales and the weaker Canadian dollar, which is driving up the cost of parts imported using U.S. dollars, the company said.

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