Third-quarter sales in the Agricultural Products segment were $4,660,000 compared to $3,671,000 during the same period of fiscal 2020, an increase of $989,000, or 26.9%.  Year-to-date Agricultural Product sales were $12,017,000 compared to $9,695,000 during the same period in fiscal 2020, an increase of $2,322,000, or 24%. The company attributes the large increase in revenue to a strengthening agricultural economy that is producing five to ten-year highs in commodity and livestock prices along with government assistance programs that provided farmers with much-needed government assistance during the COVID-19 pandemic.

The company saw a 71% increase in grinder mixer sales year on year, a 60% increase in beet equipment, and is showing a 13% increase in manure spreader sales year on year. Art’s Way is seeing continued demand in the fourth quarter with the current ag backlog up 269% from a year ago. Supplier delays have improved but are not gone completely. Further price increases before the company’s early order program will be necessary to maintain strong margins on products.

Consolidated net income was $56,000 for the three-month period ended Aug. 31, 2021, compared to a net loss of $(424,000) for the same period in fiscal 2020. Consolidated net loss for the nine months ended Aug. 31, 2021 was $(195,000) compared to $(1,663,000) for the same period in fiscal 2020. Art’s Way has now reported two straight quarters with net income. The overall health of the agricultural economy has stabilized its primary business segment while operational improvements have increased productivity in this time of high demand.

President and CEO of Art’s-Way, David King reports,

“I am very pleased with our third-quarter performance as the company continues to see positive results from our operational improvements. Our team continues to show impressive execution despite the challenges of supply chain disruptions, shortages of skilled labor, and inflationary pressures. To address these ongoing issues our team is working closely with suppliers to ensure delivery of critical parts, deploying industrial robots to alleviate labor shortages, and implementing new pricing to offset escalating costs.  Favorable market conditions increased sales, and a strong backlog supports our positive outlook for the fourth quarter of 2021 and the first half of 2022.”

Source: Art’s Way

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Agriculture’s net sales totaled $2.5 billion in the second quarter of 2020, down 18% compared to the second quarter of 2019 (down 14% on a constant currency basis). The decrease was driven by lower industry volumes linked to the COVID-19 pandemic, primarily in Europe, partially offset by positive price realization.

With all plants and depots up and running by the end of the second quarter, CNH Industrial reported consolidated revenues of $5.6 billion, net income of $361 million and adjusted net loss of $85 million. Net debt of Industrial Activities at $2.3 billion, with positive free cash flow of $97 million helped by end-demand resuming in most markets and the Company’s cost reduction and cash preservation measures. CNH Industrial ended the quarter with strong available liquidity of $11.5 billion

Adjusted EBIT was $203 million, a $138 million decrease compared to the second quarter of 2019. Positive price realization, disciplined cost management and continued prioritization in research and development spending were more than offset by lower volume and mix and negative fixed cost absorption only partially mitigated by lower purchasing costs. Adjusted EBIT margin was 8.0% (11.0% in the second quarter of 2019).

The following is an extract from the “CNH Industrial 2020 second quarter results” press release. The complete press release can be accessed by visiting the media section of the CNH Industrial corporate website: https://www.cnhindustrial.com/en-us/media/press_releases/Pages/default.aspx or consulting the accompanying PDF.

ONSOLIDATED RESULTS

• Consolidated revenues of $5.6 billion in the second quarter of 2020, down 26% compared to the second quarter of 2019 (down 23% at constant currency)
• Reported net income of $361 million (or $0.26 per share) in the second quarter of 2020 including a gain of $1,475 million from the remeasurement to fair value of the investment in Nikola Corporation (NKLA), partially offset by $840 million of non-cash impairment charges primarily related to the goodwill allocated to Construction, as well as asset optimization charges of $282 million, mainly as a result of the adverse COVID-19 impacts on used trucks final markets in Europe
• Adjusted net loss of $85 million in the second quarter of 2020 compared to adjusted net income of $430 million in the second quarter of 2019
• Adjusted diluted earnings per share loss of $0.07 in the second quarter of 2020 compared to adjusted diluted earnings per share of $0.31 in the second quarter of 2019
• On June 15, Fitch Ratings (“Fitch”) affirmed CNH Industrial N.V. and CNH Industrial Capital LLC’s long-term issuer default rating at “BBB-” and changed the outlook to stable from positive

INDUSTRIAL ACTIVITIES

• Net sales of $5.2 billion in the second quarter of 2020, down 27% compared to the second quarter of 2019 (down 24% on a constant currency basis), due to severe adverse COVID-19 impacts on supply chain and market conditions across all regions and segments
• Adjusted EBIT(2)(3) loss of $58 million in the second quarter of 2020 compared to adjusted EBIT of $527 million in the second quarter of 2019, strongly impacted by industry demand disruption, negative absorption caused by plant shutdowns and other actions to lower inventory levels, only partially offset by reduced selling, general and administrative expenses and deferral of certain research and development expenses not related to new product launches
• Net debt at June 30, 2020 of $2.3 billion, in line with March 31, 2020 despite the adverse impacts of COVID-19, as a result of positive free cash flow of $97 million and a variety of cash preservation measures

COVID-19 RELATED MATTERS

• All plants and depots resumed activities in May 2020, with safety protocols in place
• Continued social distancing rules in place with a gradual return to the office for employees who are able to work from home
• Continued support to communities
• Financial Services offered payment deferrals and debt rescheduling to the Company’s customers and dealers

Source: Farm Equipment Manufacturers Association

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