The significant drop in demand for new machines resulted in a 17% reduction in Kuhn Group net sales in the first six months of this year to around €733 million (CHF704 million).
Down on the roughly €887 million (CHF 852 million) in the same six months one year ago, Kuhn Group parent company Bucher Industries says that lower prices for agricultural products, high interest rates and fewer subsidies continue to make farmers cautious in terms of investment.
In addition, the inventories of agricultural machinery in the dealer network remain high, which led to lower demand on the part of the dealers in all regions and was reflected in a significant decline in order intake, especially in Brazil and Europe. Europe’s uncertain political climate, together with its wet weather conditions, had an additional negative impact. The slowdown also continued in North America.
Looking ahead to the second half of this year, Buhler Industries expects demand for farm machinery to continue to be affected by the volatile environment. Capacity adjustments have been made in Brazil as well as in Europe, and the division is continuing to work on optimising its costs.
While it is unlikely that the agricultural machinery market will recover, the stabilisation that has begun in other markets is expected to continue. Overall, Kuhn Group expects sales to decrease and the operating profit margin to be lower.
Kuhn net sales down nearly a fifth – Profi
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