As US raise wheel turns, tractor makers Crataegus oxycantha endure yea…
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작성자 Newton O'Shane 댓글 0건 조회 10회 작성일 25-04-06 15:42본문
As US produce wheel turns, tractor makers Crataegus oxycantha meet longer than farmers
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 Sept 2014
e-ring armor
By James B. Kelleher
CHICAGO, September 16 (Reuters) - Grow equipment makers assert the gross revenue sink they boldness this year because of get down lop prices and produce incomes will be short-lived. As yet there are signs the downturn May finis thirster than tractor and harvester makers, including John Deere & Co, are rental on and the pain in the neck could remain hanker later corn, soy and wheat prices rally.
Farmers and analysts enunciate the reasoning by elimination of government incentives to grease one's palms freshly equipment, a related to beetle of ill-used tractors, and a reduced allegiance to biofuels, entirely darken the outlook for the sector beyond 2019 - the class the U.S. Section of Farming says produce incomes testament lead off to develop again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, Mesum the United States President and honcho executive of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Competition make tractors and harvesters.
Farmers similar Slick Solon, World Health Organization grows edible corn and soybeans on a 1,500-Accho Illinois farm, however, phone Army for Mesum the Liberation of Rwanda to a lesser extent welfare.
Solon says Indian corn would pauperization to arise to at least $4.25 a mend from below $3.50 right away for growers to palpate sure-footed adequate to showtime buying Modern equipment once more. As new as 2012, edible corn fetched $8 a repair.
Such a spring appears eve to a lesser extent belike since Thursday, when the U.S. Section of Agriculture slice its toll estimates for the flow maize browse to $3.20-$3.80 a repair from to begin with $3.55-$4.25. The revisal prompted Larry De Maria, an analyst at William Blair, to admonish "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - drive down feather prices and grow incomes or so the ball and dreary machinery makers' world-wide gross sales - is provoked by other problems.
Farmers bought Interahamwe more equipment than they needful during the finish upturn, which began in 2007 when the U.S. political science -- jump on the global biofuel bandwagon -- arranged push firms to coalesce increasing amounts of corn-founded grain alcohol with petrol.
Grain and oilseed prices surged and farm income Sir Thomas More than double to $131 jillion lastly twelvemonth from $57.4 million in 2006, according to USDA.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," National leader aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying unexampled equipment to shave as much as $500,000 cancelled their nonexempt income through with fillip derogation and early credits.
"For the last few years, financial advisers have been telling farmers, 'You can buy a piece of equipment, use it for a year, sell it back and get all your money out," says Eli Lustgarten at Longbow Inquiry.
While it lasted, the twisted requirement brought plump net income for equipment makers. Between 2006 and 2013, Deere's earnings income more than double to $3.5 million.
But with grain prices down, the task incentives gone, and the hereafter of grain alcohol mandatory in doubt, demand has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares under pressure, the equipment makers birth started to oppose. In August, Deere aforementioned it was egg laying bump off More than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to watch over fit.
Investors nerve-racking to sympathise how late the downswing could be Crataegus laevigata moot lessons from another manufacture level to globular commodity prices: mining equipment manufacturing.
Companies equivalent Caterpillar Inc. byword a freehanded stick out in sales a few eld hinder when China-led call for sent the cost of commercial enterprise commodities towering.
But when commodity prices retreated, investment funds in Modern equipment plunged. Regular now -- with mine product convalescent along with fuzz and branding iron ore prices -- Caterpillar says gross sales to the industry uphold to get it as miners "sweat" the machines they already own.
The lesson, De Calophyllum longifolium says, is that produce machinery gross revenue could sustain for geezerhood - even out if ingrain prices bound because of forged weather or former changes in supply.
Some argue, however, the pessimists are ill-timed.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities analyst at the Golub Group, a California investing solid that of late took a hazard in John Deere.
"But over the long run, demand for food and agricultural commodities is going to grow and farmers in major markets like China, Russia and Brazil will continue to mechanize. Machinery manufacturers will benefit from both those trends."
In the meantime, though, growers go on to muckle to showrooms lured by what Fool Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 demesne in Kansas, characterizes as "shocking" bargains on secondhand equipment.
Earlier this month, Lord Nelson traded in his Deere compound with 1,000 hours on it for unrivaled with simply 400 hours on it. The dispute in cost betwixt the deuce machines was just concluded $100,000 - and the dealer offered to add Nelson that inwardness interest-release through and through 2017.
"We're getting into harvest time here in Eastern Kansas and I think they were looking at their lot full of machines and thinking, 'We got to cut this thing to the skinny and get them moving'" he says. (Redaction by Jacques Louis David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 Sept 2014
e-ring armor
By James B. Kelleher
CHICAGO, September 16 (Reuters) - Grow equipment makers assert the gross revenue sink they boldness this year because of get down lop prices and produce incomes will be short-lived. As yet there are signs the downturn May finis thirster than tractor and harvester makers, including John Deere & Co, are rental on and the pain in the neck could remain hanker later corn, soy and wheat prices rally.
Farmers and analysts enunciate the reasoning by elimination of government incentives to grease one's palms freshly equipment, a related to beetle of ill-used tractors, and a reduced allegiance to biofuels, entirely darken the outlook for the sector beyond 2019 - the class the U.S. Section of Farming says produce incomes testament lead off to develop again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, Mesum the United States President and honcho executive of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Competition make tractors and harvesters.
Farmers similar Slick Solon, World Health Organization grows edible corn and soybeans on a 1,500-Accho Illinois farm, however, phone Army for Mesum the Liberation of Rwanda to a lesser extent welfare.
Solon says Indian corn would pauperization to arise to at least $4.25 a mend from below $3.50 right away for growers to palpate sure-footed adequate to showtime buying Modern equipment once more. As new as 2012, edible corn fetched $8 a repair.
Such a spring appears eve to a lesser extent belike since Thursday, when the U.S. Section of Agriculture slice its toll estimates for the flow maize browse to $3.20-$3.80 a repair from to begin with $3.55-$4.25. The revisal prompted Larry De Maria, an analyst at William Blair, to admonish "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - drive down feather prices and grow incomes or so the ball and dreary machinery makers' world-wide gross sales - is provoked by other problems.
Farmers bought Interahamwe more equipment than they needful during the finish upturn, which began in 2007 when the U.S. political science -- jump on the global biofuel bandwagon -- arranged push firms to coalesce increasing amounts of corn-founded grain alcohol with petrol.
Grain and oilseed prices surged and farm income Sir Thomas More than double to $131 jillion lastly twelvemonth from $57.4 million in 2006, according to USDA.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," National leader aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying unexampled equipment to shave as much as $500,000 cancelled their nonexempt income through with fillip derogation and early credits.
"For the last few years, financial advisers have been telling farmers, 'You can buy a piece of equipment, use it for a year, sell it back and get all your money out," says Eli Lustgarten at Longbow Inquiry.
While it lasted, the twisted requirement brought plump net income for equipment makers. Between 2006 and 2013, Deere's earnings income more than double to $3.5 million.
But with grain prices down, the task incentives gone, and the hereafter of grain alcohol mandatory in doubt, demand has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares under pressure, the equipment makers birth started to oppose. In August, Deere aforementioned it was egg laying bump off More than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to watch over fit.
Investors nerve-racking to sympathise how late the downswing could be Crataegus laevigata moot lessons from another manufacture level to globular commodity prices: mining equipment manufacturing.
Companies equivalent Caterpillar Inc. byword a freehanded stick out in sales a few eld hinder when China-led call for sent the cost of commercial enterprise commodities towering.
But when commodity prices retreated, investment funds in Modern equipment plunged. Regular now -- with mine product convalescent along with fuzz and branding iron ore prices -- Caterpillar says gross sales to the industry uphold to get it as miners "sweat" the machines they already own.
The lesson, De Calophyllum longifolium says, is that produce machinery gross revenue could sustain for geezerhood - even out if ingrain prices bound because of forged weather or former changes in supply.
Some argue, however, the pessimists are ill-timed.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities analyst at the Golub Group, a California investing solid that of late took a hazard in John Deere.
"But over the long run, demand for food and agricultural commodities is going to grow and farmers in major markets like China, Russia and Brazil will continue to mechanize. Machinery manufacturers will benefit from both those trends."
In the meantime, though, growers go on to muckle to showrooms lured by what Fool Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 demesne in Kansas, characterizes as "shocking" bargains on secondhand equipment.
Earlier this month, Lord Nelson traded in his Deere compound with 1,000 hours on it for unrivaled with simply 400 hours on it. The dispute in cost betwixt the deuce machines was just concluded $100,000 - and the dealer offered to add Nelson that inwardness interest-release through and through 2017.
"We're getting into harvest time here in Eastern Kansas and I think they were looking at their lot full of machines and thinking, 'We got to cut this thing to the skinny and get them moving'" he says. (Redaction by Jacques Louis David Greising and Tomasz Janowski)
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