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EQUIPMENT INDUSTRY NEWS Use of all articles in the Equipment Industry News pages are used with permission of Lessiter Media (LM), Ag Equipment Intelligence issue of Nov. 15, 2016, Vol. 22, Issue 11. Use of any of the articles and information contained in Ag Equipment Intelligence, Rural Lifestyle Dealer or any other Lessiter Publication Media Brands requires permission of the publisher.

Kubota’s Farm Equipment Revenues Nearly Flat in 3Q16 For the third quarter of 2016, Kubota’s total revenues were $3.56 billion, a drop of about 4% compared to the same period of 2015. Revenues from the Farm Equipment& Engines division were $2.42 billion, nearly flat compared to the $2.49 billion of revenues for the third quarter the previous year. Year-to-date, Kubota’s revenues for the division were $7.1 billion vs. $7.55 billion at this point last year, a decline of 5.9%. 2016 Outlook. The company revised its forecasts for revenues for the year ending Dec. 31, 2016, downward to Sales Surge $14.7 billion, a decrease of 4WD $551 million from the During October previous forecast in August. In Farm & Industrial Machinery, Kubota says domestic revenues are of While North American retail sales equipment weremachinery weak overall in forecast to decrease since theagagriculture October, 4WD sales were strong in market has continued to stagnate due to the adverse both the U.S. and Canada, according reaction to the front-loaded to demand caused by the the latest numbers released by the of Equipmentlast Manufacturers. strengthening of emission Assn. regulations year. During the month, 4WD sales Overseas revenues are alsoincreased forecast decrease 18.8% to year-over-year, while sales 27.3%. because sales growth in Northcombine America is decreased anticipated (Mig) Dobre, senior research to be lower than expected. Mircea analyst with Baird, notes this was only the third positive month for 4WD tractor sales since 2013 (December 2015 Full-Line Progress. +0.6%, January 2016 +10%). October Earlier this year, Kubota 2016 continued on month its path marked the 33rd of large ag year-over-year declines (October toward becoming a true full-line farm equipment 2015 and October 2014 down 31% manufacturer with its acquisition of Great Plains. and 25%, respectively). The addition of Great Plains’ implement lineup andand U.S. and Canada large tractor combine retail sales decreased 15% strength in North America complements Kubota’s year-over-year in October, down from acquisition of Kverneland in the May has aU.S. 14%2012, decreasewhich in September. sales were down 19% year-over-year, strong presence in Western Europe. while Canadian sales were flat. On the company’s approach to dealers, Todd 4WD tractor sales increased Stucke, Kubota’s vice president of sales andvs. 18.8% year-over-year in October 18.5% decrease in September marketing, said this summer, an “There is no mandate. (U.S. +19.7%, Canada +16.1%). U.S. On the dealer side, we wantdealer to earn thatof business inventories 4WD tractors decreased 20.8% year-over-year and entice the dealers to want to carry our brand. in September. October is typically an As far as Great Plains, it’s wherever the contract is above-average month for 4WD tractor open. If the contract is opensales, and a Kubota dealer accounting for 14.3% of annual over the last can provide the right productsales support, he5 years. may have Combine sales were slightly the right to have that contract.” worse, posting a 27.3% year-overyear decrease in October ~ following AEI September’s drop of 26.5%. U.S. combine inventories were 34.4% lower year-over-year in September vs. down 25.8% the previous month. October is typically an above-average month for combine sales, accounting for 12.6% of annual sales over the last 5 years. Row-crop tractor sales posted a 16.7% year-over-year decline, worse

4WD Sales Surge During October

While North American retail sales of ag equipment were weak overall in October, 4WD sales were strong in both the U.S. and Canada, according to the latest numbers released by the Assn. of Equipment Manufacturers. During the month, 4WD sales increased 18.8% year-over-year, while combine sales decreased 27.3%. Mircea (Mig) Dobre, senior research analyst with Baird, notes this was only the third positive month for 4WD trac¬tor sales since 2013 (December 2015 +0.6%, January 2016 +10%). October 2016 marked the 33rd month of large ag year-over-year declines (October 2015 and October 2014 down 31% and 25%, respectively). ~ AEI OCTOBER U.S. UNIT RETAIL SALES Equipment

October 2016

October 2015

Percent Change

YTD 2016

YTD 2015

Percent Change

September 2016 Field Inventory

Farm Wheel Tractors-2WD 12,322

11,484

7.3

117,473

105,655

11.2

69,474

40-100 HP

Under 40 HP

5,770

5,866

–1.6

48,487

50,554

–4.1

36,224

100 HP Plus

2,139

2,718

–21.3

16,133

20,817

–22.5

10,202

Total-2WD

20,231

20,068

0.8

182,093

177,026

2.9

115,900

Total-4WD

468

391

19.7

1,935

2,560

–22.4

830

20,699

20,459

1.2

184,028

179,586

2.5

116,730

299

459

–34.9

3,344

4,486

–25.5

917

Total Tractors Combines

OCTOBER CANADIAN UNIT RETAIL SALES

MAKE PLANS NOW TO ATTEND THE

Equipment

October 2016

October 2015

Percent Change

YTD 2016

YTD 2015

Percent Change

September 2016 Field Inventory

1,413

8.1

9,905

11,125

–11.0

8,964

13.3

4,564

4,842

–5.7

4,783

Farm Wheel Tractors-2WD Under 40 HP

1,528

2017 NEW YORK FARM SHOW

40-100 HP

100 HP Plus

1,049

926

583

548

6.4

3,104

3,764

–17.5

2,469

Total-2WD

3,160

2,887

9.5

17,573

19,731

–10.9

16,216

Total-4WD

144

124

16.1

664

694

–4.3

273

3,304

3,011

9.7

18,237

20,425

–10.7

16,489

280

337

–16.9

1,441

1,609

–10.4

511

Total Tractors Combines

U.S. UNIT RETAIL SALES OF 2-4 WHEEL DRIVE TRACTORS & COMBINES

2016 5 year average 30,000 28,000 26,000 24,000 22,000

Northeast Dealer | DECEMBER 2016 … 25 20,000 18,000

Dec 2016  
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