Buhler Industries posted a profit of $3 million in the third quarter, up from $300,000 in the same period last year.
Revenue for the quarter ending June 30 was $87.1 million, up from $79.1 million last year.
The company produces tractors under the Versatile name and other equipment under brands such as Farm King and Ezee-On.
Gross profit declined as the company increased sales discounts in the highly competitive market, which is suffering as farmers experience low commodity prices.
Slower production reduced efficiencies in manufacturing.
Most significantly, the weak Canadian dollar has made equipment parts bought in U.S. dollars more expensive.
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Sales for the rest of the year are expected to be slightly off 2015 levels on sluggish demand for agricultural equipment.
Profitability for the year is projected to improve over 2015 levels, mostly because of sales of surplus assets.
Inventory levels are being reduced to reflect the lower demand. This will help increase cash flow.
Research and development spending in the year to date was $6.3 million, similar to the previous year.
“Management believes this strategy will maintain the company’s competitive position in the marketplace.”
The Winnipeg-based, Russian-owned company has factories in Morden and Winnipeg in Manitoba, Vegreville, Alta., Fargo, North Dakota, Salem, South Dakota and Willmar, Minnesota.
