“CLAAS managed to achieve growth despite the supply-side bottlenecks and the pandemic. We even registered a double-digit rise in revenue and a significant improvement in profitability across all world regions,”

said Thomas Böck, chair of the CLAAS Group Executive Board.

Last year’s growth in North America and Eastern Europe has been joined by the core markets in Western and Central Europe, including Germany and France, which are important for Claas. The United Kingdom also experienced major growth, despite the significant uncertainty surrounding Brexit.

Spending on research and development at a record level

Expenditure on research and development set a new record with €262 million (previous year: €237 million). Investments in innovative electronic architectures and the digitization of agricultural processes remained important focus areas.

Investments in fixed assets totaling €138 million (previous year: €131 million) continued at a high level. In Le Mans, the Future Factory for tractors was reopened in May following an extensive renovation.  A modernization project of even larger proportions at the combined harvester production facilities in Harsewinkel, Germany, was also finished. Over 15,000 m² of production space was completely refurbished in just five months. State-of-the-art AGV transport systems are now used in the production areas of both factories, increasing both flexibility and efficiency.

Successful product campaign With

With innovative products and a strong sales team, Claas was able to acquire new customers and convince existing customers to stay with the company. Launched in 2019, the product campaign for harvesting technology continued with the new TRION combine series introduction throughout Europe and many other regions. The introduction adds a number of new models to the mid-range segment that is unparalleled in this combined harvester class.

There have also been significant developments in the tractor segment, where a number of new fuel-saving and performance-enhancing features were introduced. There was also a wealth of innovation in the forage harvesting segment, which included an extensive technical update for the QUADRANT large square baler.

The rise in the global workforce

The number of employees around the world rose over the course of the year and was 11,957 at the end of the fiscal year (previous year: 11,395). In Germany, the number rose by 3.5 percent to 5,790 (previous year: 5,596), and by 4.3 percent to 2,377 in France (previous year: 2,279). Group-wide, the number of trainees also increased to 775 (previous year: 714), of whom 473 were based in Germany (previous year: 430).

Outlook

The supply situation and price development in the procurement markets present a greater risk compared to last year. Overall, the company anticipates stable demand for agricultural machinery in the most important sales regions during the 2022 fiscal year. Despite these uncertainties, Claas expects a rise in revenue and a slightly lower result in a year-on-year comparison.

The post Growth Accelerates at Claas appeared first on North America FarmQuip Magazine.

Jahmy Hindman, Chief Technology Officer at John Deere, said:

“Deere views autonomy as an important step forward in enabling farmers to leverage their resources strategically to feed the world and create more sustainable and profitable operations. Bear Flag’s team of talented agriculture professionals, engineers and technologists have a proven ability to deliver advanced technology solutions to the market. Joining that expertise and experience with Deere’s expertise in autonomy, along with our world-class dealer channel, will accelerate the delivery of solutions to farmers that address the immense challenge of feeding a growing world.”

Deere first started working with Bear Flag in 2019 as part of the company’s Startup Collaborator program, an initiative focused on enhancing work with startup companies whose technology could add value for Deere customers. Since then, Bear Flag has successfully deployed its autonomous solution on a limited number of farms in the U.S.

“One of the biggest challenges farmers face today is the availability of skilled labor to execute time-sensitive operations that impact farming outcomes. Autonomy offers a safe and productive alternative to address that challenge head-on. Bear Flag’s mission to increase global food production and reduce the cost of growing food through machine automation is aligned with Deere’s and we’re excited to join the Deere team to bring autonomy to more farms,”

said Igino Cafiero, co-founder, and CEO of Bear Flag Robotics.

The Bear Flag team consists of agriculture professionals, engineers and technologists focused on autonomy, sensor fusion, vision, data, software, and hardware. They will remain in Silicon Valley where they will work closely with Deere to accelerate innovation and autonomy for customers across the world.

Dan Leibfried, Director – Automation & Autonomy at Deere, said:

“Deere and Bear Flag are highly complementary from both a technology and mission perspective. We look forward to working even closer together with the ultimate goal of helping farmers achieve the best possible outcomes through advanced technology like autonomy.”

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Worldwide net sales and revenues increased 30 percent, to $12.058 billion, for the second quarter of 2021 and rose 25 percent, to $21.170 billion, for six months. Net sales of the equipment operations were $10.998 billion for the quarter and $19.049 billion for six months, compared with $8.224 billion and $14.754 billion last year.

“With another quarter of solid performance, John Deere closed out the first half of the year on a highly encouraging note. Our results received support across our entire business lineup, reflecting healthy worldwide markets for farm and construction equipment. Our smart industrial operating strategy is continuing to have a significant impact on performance while also helping customers do their jobs in a more profitable and sustainable manner.”

said John C. May, chairman, and chief executive officer.

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2021 is forecast to be in a range of $5.3 billion to $5.7 billion.

“While the company is clearly performing at a high level, Deere expects to see increased supply-chain pressures through the balance of the year. We are working closely with key suppliers to secure the parts and components that our customers need to deliver essential food production and infrastructure. Despite these challenges, Deere is on track for a strong year and we believe is well-positioned to unlock greater value for our customers and other stakeholders in the future.”

May said.

In last year’s second quarter, Deere recorded impairments totaling $114 million pretax. In the first half of 2020, the total voluntary employee-separation program expense recognized was $136 million pretax. For further details on special items, see Note 1 of the press release financial statements.

For a discussion of net sales and operating profit results, see the production and precision agriculture, small agriculture and turf, and construction and forestry sections below.

Production and precision agriculture sales increased for the quarter due to higher shipment volumes and price realization. Operating profit rose primarily due to price realization and higher shipment volumes/sales mix. These items were partially offset by higher production costs.

Small agriculture and turf sales for the quarter increased due to higher shipment volumes, price realization, and the favorable effects of foreign currency translation. Operating profit increased primarily due to higher shipment volumes/sales mix, price realization, and the favorable effects of foreign currency exchange. These items were partially offset by higher production costs.

Construction and forestry sales moved higher for the quarter primarily due to higher shipment volumes, price realization, and the favorable effects of foreign currency translation. Operating profit increased due to higher shipment volumes/sales mix and price realization. Results for the prior period were affected by impairments to certain fixed assets and an unconsolidated equipment company.

The increase in financial services net income for the quarter was mainly due to a lower provision for credit losses, an improvement on operating-lease residual values, and more favorable financing spreads. Results last year also included impairments on lease residual values.

Financial Services. Full-year 2021 results are expected to benefit from improvement on operating-lease residual values, income earned on a higher average portfolio, a lower provision for credit losses, and a more favorable financing spread.

John Deere Capital Corporation

The following is disclosed on behalf of the company’s financial services subsidiary, John Deere Capital Corporation (JDCC), in connection with the disclosure requirements applicable to its periodic issuance of debt securities in the public market.

Results for the quarter and first six months were higher than the same periods in 2020 mainly due to a lower provision for credit losses, an improvement on operating-lease residual values, and more favorable financing spreads. Results last year also included impairments on lease residual values.

Safe Harbor Statement

“Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995”:  Statements under “Company Outlook & Summary,” “Industry Outlook,” “Deere Segment Outlook,” and other forward-looking statements herein that relate to future events, expectations, and trends involve factors that are subject to change and risks and uncertainties that could cause actual results to differ materially.  Some of these risks and uncertainties could affect particular lines of business, while others could affect all of the company’s businesses.

The company’s agricultural equipment businesses are subject to a number of uncertainties including the factors that affect farmers’ confidence and financial condition.  These factors include demand for agricultural products, world grain stocks, weather conditions, soil conditions, harvest yields, prices for commodities and livestock, crop and livestock production expenses, availability of transport for crops, trade restrictions and tariffs (e.g., China), global trade agreements, the level of farm product exports (including concerns about genetically modified organisms), the growth and sustainability of non-food uses for some crops (including ethanol and biodiesel production), real estate values, available acreage for farming, the land ownership policies of governments, changes in government farm programs and policies, international reaction to such programs, changes in and effects of crop insurance programs, changes in environmental regulations and their impact on farming practices, animal diseases (e.g., African swine fever) and their effects on poultry, beef and pork consumption and prices and on livestock feed demand, and crop pests and diseases and the impact of the COVID pandemic on the agricultural industry including demand for, and production and exports of, agricultural products, and commodity prices.

The production and precision agriculture business is dependent on agricultural conditions and relies on hardware and software, guidance, connectivity, and digital solutions, and automation and machine intelligence.  Many factors contribute to the company’s precision agriculture sales and results, including the impact on customers’ profitability or sustainability outcomes; the rate of adoption and use by customers; availability of technological innovations; the speed of research and development; effectiveness of partnerships with third parties; and the dealer channel’s ability to support and service precision technology solutions.

Factors affecting the outlook for the company’s small agriculture and turf equipment include agricultural conditions, consumer confidence, weather conditions, customer profitability, labor supply, consumer borrowing patterns, consumer purchasing preferences, housing starts and supply, infrastructure investment, spending by municipalities, and golf courses, and consumable input costs.

Consumer spending patterns, real estate, and housing prices, the number of housing starts, interest rates, commodity prices such as oil and gas, the levels of public and non-residential construction, and investment in infrastructure affect sales and results of the company’s construction and forestry equipment.  Prices for pulp, paper, lumber, and structural panels affect sales of forestry equipment.

Many of the factors affecting production and precision agriculture, small agriculture and turf, and construction and forestry segments, have been and may continue to be impacted by global economic conditions, including those resulting from the COVID pandemic and responses to the pandemic taken by governments and other authorities.

All of the company’s businesses and its results are affected by general economic conditions in the global markets and industries in which the company operates; customer confidence in general economic conditions; government spending and taxing; foreign currency exchange rates and their volatility, especially fluctuations in the value of the U.S. dollar; interest rates (including the availability of IBOR reference rates); inflation and deflation rates; changes in weather patterns; the political and social stability of the global markets in which the company operates; the effects of, or response to, terrorism and security threats; wars and other conflicts; natural disasters; and the spread of major epidemics (including the COVID pandemic) and government and industry responses to epidemics such as travel restrictions and extended shut down of businesses.

Uncertainties related to the magnitude and duration of the COVID pandemic may significantly adversely affect the company’s business and outlook.  These uncertainties include: the duration and impact of any resurgence in COVID cases in any country, state, or region; the emergence, contagiousness, and threat of new and different strains of COVID; the availability, acceptance, and effects of vaccines; prolonged reduction or closure of the company’s operations, or a delayed recovery in our operations; additional closures as mandated or otherwise made necessary by governmental authorities; disruptions in the supply chain and a prolonged delay in resumption of operations by one or more key suppliers, or the failure of any key suppliers; the company’s ability to meet commitments to customers on a timely basis as a result of increased costs and supply challenges; the ability to receive goods on a timely basis and at anticipated costs; increased logistics costs; delays in the company’s strategic initiatives as a result of reduced spending on research and development; additional operating costs due to remote working arrangements, adherence to social distancing guidelines and other COVID-related challenges; increased risk of cyber attacks on network connections used in remote working arrangements; increased privacy-related risks due to processing health-related personal information; legal claims related to personal protective equipment designed, made, or provided by the company or alleged exposure to COVID on company premises; absence of employees due to illness; the impact of the pandemic on the company’s customers and dealers, and their delays in their plans to invest in new equipment; requests by the company’s customers or dealers for payment deferrals and contract modifications; the impact of disruptions in the global capital markets and/or declines in the company’s financial performance, outlook or credit ratings, which could impact the company’s ability to obtain funding in the future; and the impact of the pandemic on demand for our products and services as discussed above.  It remains unclear when a sustained economic recovery could occur and what recovery may look like.  All of these factors could materially and adversely affect our business, liquidity, results of operations, and financial position.

Significant changes in market liquidity conditions, changes in the company’s credit ratings, and any failure to comply with financial covenants in credit agreements could impact access to funding and funding costs, which could reduce the company’s earnings and cash flows.  Financial market conditions could also negatively impact customer access to capital for purchases of the company’s products and customer confidence and purchase decisions, borrowing and repayment practices, and the number and size of customer loan delinquencies and defaults.  A debt crisis in Europe, Latin America, or elsewhere could negatively impact currencies, global financial markets, social and political stability, funding sources and costs, asset and obligation values, customers, suppliers, demand for equipment, and company operations and results.  The company’s investment management activities could be impaired by changes in the equity, bond, and other financial markets, which would negatively affect earnings.

The withdrawal of the United Kingdom from the European Union and the perceptions as to the impact of the withdrawal may adversely affect business activity, political stability, and economic conditions in the United Kingdom, the European Union, and elsewhere.

The economic conditions and outlook could be further adversely affected by uncertainty regarding any new or modified trade arrangements between the United Kingdom and the European Union and/or other countries, the risk that one or more other European Union countries could come under increasing pressure to leave the European Union or the risk that the euro as the single currency of the Eurozone could cease to exist.

Any of these developments, or the perception that any of these developments are likely to occur, could affect economic growth or business activity in the United Kingdom or the European Union and could result in the relocation of businesses, cause business interruptions, lead to economic recession or depression, and impact the stability of the financial markets, availability of credit, currency exchange rates, interest rates, financial institutions, and political, financial and monetary systems.  Any of these developments could affect our businesses, liquidity, results of operations, and financial position.

Additional factors that could materially affect the company’s operations, access to capital, expenses and results include changes in, uncertainty surrounding and the impact of governmental trade, banking, monetary and fiscal policies, including financial regulatory reform and its effects on the consumer finance industry, derivatives, funding costs and other areas; governmental programs, policies, and tariffs for the benefit of certain industries or sectors; sanctions in particular jurisdictions; retaliatory actions to such changes in trade, banking, monetary and fiscal policies; actions by central banks; actions by financial and securities regulators; actions by environmental, health and safety regulatory agencies, including those related to engine emissions, carbon and other greenhouse gas emissions, noise and the effects of climate change; changes to GPS radio frequency bands or their permitted uses; changes in labor and immigration regulations; changes to accounting standards; changes in tax rates, estimates, laws and regulations and company actions related thereto; changes to and compliance with privacy regulations; changes to and compliance with economic sanctions and export controls laws and regulations; compliance with U.S. and foreign laws when expanding to new markets and otherwise; and actions by other regulatory bodies.

Other factors that could materially affect results include production, design and technological innovations and difficulties, including capacity and supply constraints and prices; the loss of or challenges to intellectual property rights whether through theft, infringement, counterfeiting or otherwise; the availability and prices of strategically sourced materials, components and whole goods; delays or disruptions in the company’s supply chain or the loss of liquidity by suppliers; disruptions of infrastructures that support communications, operations or distribution; the failure of customers, dealers, suppliers or the company to comply with laws, regulations and company policy pertaining to employment, human rights, health, safety, the environment, sanctions, export controls, anti-corruption, privacy and data protection and other ethical business practices; events that damage the company’s reputation or brand; significant investigations, claims, lawsuits or other legal proceedings; start-up of new plants and products; the success of new product initiatives or business strategies; changes in customer product preferences and sales mix; gaps or limitations in rural broadband coverage, capacity and speed needed to support technology solutions; oil and energy prices, supplies and volatility; the availability and cost of freight; actions of competitors in the various industries in which the company competes, particularly price discounting; dealer practices especially as to levels of new and used field inventories; changes in demand and pricing for used equipment and resulting impacts on lease residual values; labor relations and contracts; changes in the ability to attract, develop, engage, and retain qualified personnel; acquisitions and divestitures of businesses; greater than anticipated transaction costs; the integration of new businesses; the failure or delay in closing or realizing anticipated benefits of acquisitions, joint ventures or divestitures; the inability to deliver precision technology and agricultural solutions to customers; the implementation of the smart industrial operating strategy and other organizational changes; the failure to realize anticipated savings or benefits of cost reduction, productivity, or efficiency efforts; difficulties related to the conversion and implementation of enterprise resource planning systems; security breaches, cybersecurity attacks, technology failures and other disruptions to the company’s and suppliers’ information technology infrastructure; changes in company declared dividends and common stock issuances and repurchases; changes in the level and funding of employee retirement benefits; changes in market values of investment assets, compensation, retirement, discount and mortality rates which impact retirement benefit costs; and significant changes in health care costs.

The liquidity and ongoing profitability of John Deere Capital Corporation and other credit subsidiaries depend largely on timely access to capital in order to meet future cash flow requirements, and to fund operations, costs, and purchases of the company’s products.  If general economic conditions deteriorate or capital markets become more volatile, including as a result of the COVID pandemic, funding could be unavailable or insufficient.  Additionally, customer confidence levels may result in declines in credit applications and increases in delinquencies and default rates, which could materially impact write-offs and provisions for credit losses.

The company’s forward-looking statements are based upon assumptions relating to the factors described above, which are sometimes based upon estimates and data prepared by government agencies.

Such estimates and data are often revised. The company, except as required by law, undertakes no obligation to update or revise its forward-looking statements, whether as a result of new developments or otherwise.  Further information concerning the company and its businesses, including factors that could materially affect the company’s financial results, is included in the company’s other filings with the SEC (including, but not limited to, the factors discussed in Item 1A.  Risk Factors of the company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q).

Source: Pr News Wire

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There were 15,370,048 Shares issued and outstanding as of September 3, 2020. Of this amount, 10,495,926 Shares constitute the “public float”, calculated in accordance with the rules of the TSX. Pursuant to the Bid, Cervus is able to purchase for cancellation up to a maximum of 1,049,592 Shares, being equal to 10% of Cervus’ “public float” outstanding on September 3, 2020.  Pursuant to the rules of the TSX, Cervus may not purchase more than 4,465 Shares in any one day, such amount being equal to 25% of the average daily trading volume of the Shares for the six months ended August 31, 2020. Notwithstanding the foregoing, pursuant to the rules of the TSX, Cervus may make one block purchase per calendar week that exceeds the daily repurchase restriction, subject to the maximum annual aggregate limit. Once the block purchase exception has been relied on, Cervus may not make any further purchases under the Bid for the remainder of that calendar day.

Purchases under the Bid will be made on the open market only through the facilities of the TSX and other Canadian marketplaces. Cervus has appointed Raymond James Ltd. as its broker, who will conduct the Bid on behalf of Cervus. The price that Cervus will pay for any Shares it purchases will be the prevailing market price of the Shares on the TSX at the time of such purchase. The actual number of Shares that may be purchased under the Bid for cancellation and the timing of any such purchases will be determined by Cervus.

In connection with the Bid, Cervus will enter into an automatic purchase plan (“Plan”) with its designated broker to allow for purchases of its Shares by the broker from time to time during the Bid including during internal blackout periods. Such purchases would be at the discretion of the broker based on parameters established by Cervus prior to any blackout period. Outside of these periods, Shares may be repurchased in accordance with management’s discretion, subject to applicable law and the rules of the TSX. The Plan may be terminated by Cervus or its broker in accordance with its terms or will terminate on the expiry of the Bid.

The Bid will commence on September 21, 2020, and will terminate on September 20, 2021, or such earlier time as the Bid is completed or terminated at the option of Cervus.

During Cervus’ last Normal Course Issuer Bid, which commenced on September 16, 2019, and terminated on September 15, 2020, Cervus repurchased 289,592 Shares at a weighted average price of $7.35 per share.

The Bid will provide Cervus with additional flexibility to manage capital and generate value for shareholders.

Source: Cervus Equipment

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Mahindra reported an operating profit of $388.7 million, down 64.5% from $1.1 billion in the previous fiscal year. The company reported a total loss of $48.3 million, compared to a profit of $904.4 million in fiscal year 2019.

Equipment Sales

Mahindra’s Farm Equipment Sector recorded total sales of 301,915 tractors (domestic + export) in fiscal year 2020 against 330,436 tractors sold in the previous year, registering a decline of 8.6%. This includes 2,988 tractors sold under the Trakstar brand, which is the third brand of Mahindra under the subsidiary Gromax Agri Equipment Ltd.

Source: Mahindra

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