Cervus results lag
Cervus Equipment’s net profit slipped 1.5 percent despite a 23 percent gain in revenue in 2013.
Annual net profit fell to $23.3 million on revenue of $899.8 million, down from $23.6 million on revenue of $731.6 million.
Sales were driven by strong demand for agricultural equipment, thanks to a healthy grain economy and increased new equipment sales and parts revenue in the commercial and industrial segments, the company said in a news release.
Revenue from the agriculture business rose 28 percent to $613.5 million. Revenue from commercial and industrial equipment business rose 23 percent to $899.8 million.
Net profit attributable to shareholders from agricultural sales was $18.2 million, up 5.1 percent, while profit from commercial and industrial equipment was $4.9 million, a decline of 1.5 percent.
Margins on sales in the agricultural business were off because of a larger percentage of used equipment in the mix.
Rocky Mountain profits dip
Weaker construction equipment sales hurt annual profits at Rocky Mountain Dealerships in 2013.
Net income for the year was $15.3 million, down from almost $24 million in the previous year.
The shift from government stimulus spending a few years ago to deficit control today has reduced spending on government and institutional projects, which hurt demand for construction equipment.
Profits from sales of agricultural equipment were also off in 2013 compared to the previous year.
This was partly the result of a larger percentage of used equipment sales in the mix.
Total revenue from new and used agricultural equipment sales and service was $943.9 million, up 7.9 percent. Some of the increase was because the company bought additional stores. Net income from the agriculture business was almost $24 million, down 12.1 percent.
Total revenue from the construction equipment business was $63.8 million, down 30 percent, and net income was a loss of $8.7 million, more than double the loss of the previous year.
Rocky Mountain Dealerships has 40 locations on the Prairies. Its key brands are Case and New Holland.