The drop in demand for agricultural equipment during the first half of this year is responsible for the fall in Kuhn Group net sales of over 13% to CHF559 million Swiss Franc (approx. £429 million). Down from the CHF645 million (around £495 million) recorded during the same six months of 2015, parent company Bucher Industries says the downturn that first took hold in the arable sector in 2015 is now also affecting the meat and dairy sectors, which are contending with considerable overproduction at a time of stagnating worldwide demand. That the operating profit of the Kuhn Group held up comparatively well – down by 12% to CHF85 million (£65 million) – is due to a number of factors, including new measures aimed at decreasing purchasing costs. Closer collaboration with retailers including initiatives designed to help manage stocks has also helped, and Kuhn’s global workforce has been reduced by nearly 9% from 5,194 during the first six months of 2015 to 4,742. Bucher Industries does not anticipate any significant improvement in the economic climate for the rest of this year, and says uncertainty in the Eurozone has increased as a result of the Brexit vote in the UK and the tense situation that prevails in some countries due to debt levels. For the remainder of this year Kuhn expects a further weakening of demand in the arable, dairy and meat industries, and a decline in sales and an operating profit margin for the whole year in high single-digit figures.
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