Kuhn results suffer in tough market
The tough worldwide agricultural equipment market has made its mark on key hay, tillage and seeding equipment manufacturer, Kuhn.
Part of the wider Bucher Group, Kuhn net sales were down 12.9 per cent in 2016 compared to 2015 numbers.
Kuhn said record cereal harvests, over supply of milk, which was also a consequence of the abolition of milk quotas in the European Union, and an oversupply of meat, led to a further decline in the prices of agricultural produce having an impact on machinery sales.
In the important volume markets such as France, poor weather saw cereal harvest yields fall, while “cautious investment behavior” particularly in the important North American market, was the norm, according to the company.
The company’s order intake and sales showed a substantial downward trend as a result and is expecting a sharp decline in operating profit and operating profit margin for 2016.