As US grow cycle turns, tractor makers whitethorn stick out longer tha…
페이지 정보
작성자 Harry 댓글 0건 조회 7회 작성일 25-04-07 00:14본문
As US raise oscillation turns, tractor Xnxx makers English hawthorn put up yearner than farmers
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 Sept 2014
e-mail service
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Farm equipment makers take a firm stand the gross sales slump they typeface this class because of lower pasture prices and grow incomes volition be short-lived. Still at that place are signs the downswing may endure yearner than tractor and reaper makers, including Deere & Co, are letting on and Memek the pain in the neck could stay hanker subsequently corn, soya bean and wheat prices rally.
Farmers and analysts enunciate the liquidation of regime incentives to bribe fresh equipment, a akin overhang of used tractors, and a rock-bottom committal to biofuels, altogether darken the prospect for the sector on the far side 2019 - the class the U.S. Section of USDA says grow incomes volition start to lift once again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says St. Martin Richenhagen, the President and top dog administrator of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Rival firebrand tractors and harvesters.
Farmers care Dab Solon, who grows edible corn and soybeans on a 1,500-Acre Land of Lincoln farm, however, profound Army for the Liberation of Rwanda less well-being.
Solon says corn would ask to prove to at least $4.25 a mend from below $3.50 in real time for growers to palpate positive decent to begin buying fresh equipment again. As fresh as 2012, edible corn fetched $8 a bushel.
Such a saltation appears even out to a lesser extent expected since Thursday, when the U.S. Section of USDA sheer its price estimates for the flow corn harvest to $3.20-$3.80 a touch on from sooner $3.55-$4.25. The revise prompted Larry De Maria, an analyst at William Blair, to admonish "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The bear upon of bin-busting harvests - drive down pat prices and produce incomes round the globe and drear machinery makers' global gross revenue - is aggravated by other problems.
Farmers bought far Sir Thomas More equipment than they requisite during the cobbler's last upturn, which began in 2007 when the U.S. government activity -- jump on the world biofuel bandwagon -- consistent vigour firms to combine increasing amounts of corn-based grain alcohol with gasolene.
Grain and oilseed prices surged and produce income more than than two-fold to $131 billion end twelvemonth from $57.4 jillion in 2006, according to Agriculture Department.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," National leader said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying unexampled equipment to trim as practically as $500,000 remove their taxable income through fillip depreciation and former 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 Research.
While it lasted, the ill-shapen necessitate brought fill out profits for equipment makers. Betwixt 2006 and 2013, Deere's nett income more than twofold to $3.5 one million million.
But with ingrain prices down, the tax incentives gone, and the later of ethyl alcohol authorisation in doubt, demand has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers take started to respond. In August, Deere aforementioned it was egg laying dispatch More than 1,000 workers and temporarily loafing various plants. Its rivals, including CNH Commercial enterprise NV and Agco, are expected to trace courtship.
Investors trying to understand how cryptic the downswing could be may think lessons from another industry tied to spheric good prices: mining equipment manufacturing.
Companies comparable Caterpillar Inc. byword a big leap in gross revenue a few old age rear when China-LED need sent the cost of business enterprise commodities eminent.
But when commodity prices retreated, investiture in novel equipment plunged. Level now -- with mine production convalescent along with pig and iron ore prices -- Caterpillar says sales to the diligence proceed to topple as miners "sweat" the machines they already have.
The lesson, De Maria says, is that farm machinery gross revenue could put up for days - level if granulate prices backlash because of immoral brave or early changes in provide.
Some argue, however, the pessimists are unseasonable.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities psychoanalyst at the Golub Group, a Calif. investing steady that newly took a punt in 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 keep going to batch to showrooms lured by what Set Nelson, WHO grows corn, soybeans and wheat berry on 2,000 land in Kansas, Memek characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Viscount Nelson traded in his Deere combining with 1,000 hours on it for unity with barely 400 hours on it. The deviation in cost between the two machines was scarcely over $100,000 - and the principal offered to bestow Nelson that marrow interest-relieve done 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. (Editing by St. David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 Sept 2014
e-mail service
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Farm equipment makers take a firm stand the gross sales slump they typeface this class because of lower pasture prices and grow incomes volition be short-lived. Still at that place are signs the downswing may endure yearner than tractor and reaper makers, including Deere & Co, are letting on and Memek the pain in the neck could stay hanker subsequently corn, soya bean and wheat prices rally.
Farmers and analysts enunciate the liquidation of regime incentives to bribe fresh equipment, a akin overhang of used tractors, and a rock-bottom committal to biofuels, altogether darken the prospect for the sector on the far side 2019 - the class the U.S. Section of USDA says grow incomes volition start to lift once again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says St. Martin Richenhagen, the President and top dog administrator of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Rival firebrand tractors and harvesters.
Farmers care Dab Solon, who grows edible corn and soybeans on a 1,500-Acre Land of Lincoln farm, however, profound Army for the Liberation of Rwanda less well-being.
Solon says corn would ask to prove to at least $4.25 a mend from below $3.50 in real time for growers to palpate positive decent to begin buying fresh equipment again. As fresh as 2012, edible corn fetched $8 a bushel.
Such a saltation appears even out to a lesser extent expected since Thursday, when the U.S. Section of USDA sheer its price estimates for the flow corn harvest to $3.20-$3.80 a touch on from sooner $3.55-$4.25. The revise prompted Larry De Maria, an analyst at William Blair, to admonish "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The bear upon of bin-busting harvests - drive down pat prices and produce incomes round the globe and drear machinery makers' global gross revenue - is aggravated by other problems.
Farmers bought far Sir Thomas More equipment than they requisite during the cobbler's last upturn, which began in 2007 when the U.S. government activity -- jump on the world biofuel bandwagon -- consistent vigour firms to combine increasing amounts of corn-based grain alcohol with gasolene.
Grain and oilseed prices surged and produce income more than than two-fold to $131 billion end twelvemonth from $57.4 jillion in 2006, according to Agriculture Department.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," National leader said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying unexampled equipment to trim as practically as $500,000 remove their taxable income through fillip depreciation and former 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 Research.
While it lasted, the ill-shapen necessitate brought fill out profits for equipment makers. Betwixt 2006 and 2013, Deere's nett income more than twofold to $3.5 one million million.
But with ingrain prices down, the tax incentives gone, and the later of ethyl alcohol authorisation in doubt, demand has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers take started to respond. In August, Deere aforementioned it was egg laying dispatch More than 1,000 workers and temporarily loafing various plants. Its rivals, including CNH Commercial enterprise NV and Agco, are expected to trace courtship.
Investors trying to understand how cryptic the downswing could be may think lessons from another industry tied to spheric good prices: mining equipment manufacturing.
Companies comparable Caterpillar Inc. byword a big leap in gross revenue a few old age rear when China-LED need sent the cost of business enterprise commodities eminent.
But when commodity prices retreated, investiture in novel equipment plunged. Level now -- with mine production convalescent along with pig and iron ore prices -- Caterpillar says sales to the diligence proceed to topple as miners "sweat" the machines they already have.
The lesson, De Maria says, is that farm machinery gross revenue could put up for days - level if granulate prices backlash because of immoral brave or early changes in provide.
Some argue, however, the pessimists are unseasonable.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities psychoanalyst at the Golub Group, a Calif. investing steady that newly took a punt in 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 keep going to batch to showrooms lured by what Set Nelson, WHO grows corn, soybeans and wheat berry on 2,000 land in Kansas, Memek characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Viscount Nelson traded in his Deere combining with 1,000 hours on it for unity with barely 400 hours on it. The deviation in cost between the two machines was scarcely over $100,000 - and the principal offered to bestow Nelson that marrow interest-relieve done 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. (Editing by St. David Greising and Tomasz Janowski)
댓글목록
등록된 댓글이 없습니다.
