Rocky Mountain Equipment saw financial results dip in the second quarter as dry weather in Western Canada and currency-related equipment price increases discouraged buyers.
The slow down in the energy market depressed sales in Rocky’s industrial equipment.
Net earnings for the quarter ending June 30 were $2.03 million, down from $5.9 million in the same period in 2014.
Sales of new equipment dropped 28 percent to $95.39 million and used equipment rose seven percent to $75.49 million.
Inventory decreased by $30.2 million or 5.7 percent.
“The reduction of our overall inventory levels, and the deleveraging of our balance sheet, continue to be a top priority for us,” said Garrett Ganden, president and chief executive of Rocky, in a news release. “We view the shift in de-mand from new to used agriculture equipment as a positive development as it pertains to the reduction of inventory.”
Also, as farmers hang on to machinery longer, it increases the company’s opportunity to increase revenue from parts and service.
The depreciation in the Canadian dollar has sparked increased American buyer interest in Rocky’s used equipment.