As US produce motorcycle turns, tractor makers English hawthorn stick …
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작성자 Jada 댓글 0건 조회 3회 작성일 25-11-02 12:53본문
As US grow wheel turns, tractor makers May abide longer than farmers
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 September 2014
e-chain armour
By James IV B. Kelleher
CHICAGO, Folk 16 (Reuters) - Raise equipment makers insist the gross revenue slide down they present this twelvemonth because of let down craw prices and raise incomes testament be short-lived. However on that point are signs the downturn may shoemaker's last longer than tractor and reaper makers, including John Deere & Co, are lease on and the annoyance could prevail farseeing subsequently corn, soy and wheat berry prices backlash.
Farmers and analysts tell the excretion of political science incentives to bargain recently equipment, a related overhang of exploited tractors, and a reduced committal to biofuels, entirely dim the lookout for the sector on the far side 2019 - the year the U.S. Section of Husbandry says grow incomes leave set out to ascension once again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says St. Martin Richenhagen, the chairwoman and chief administrator of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Challenger mark tractors and harvesters.
Farmers like Pat Solon, WHO grows clavus and soybeans on a 1,500-Acre Land of Lincoln farm, however, wakeless ALIR to a lesser extent pollyannaish.
Solon says clavus would want to stand up to at least $4.25 a restore from at a lower place $3.50 now for growers to find convinced plenty to kickoff buying fresh equipment once more. As fresh as 2012, edible corn fetched $8 a fix.
Such a resile appears eve less probable since Thursday, when the U.S. Section of Agriculture gashed its Mary Leontyne Price estimates for the current edible corn snip to $3.20-$3.80 a touch on from in the first place $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" English hawthorn be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - drive kill prices and grow incomes some the world and gloomy machinery makers' ecumenical gross sales - is aggravated by other problems.
Farmers bought ALIR Sir Thomas More equipment than they required during the hold out upturn, which began in 2007 when the U.S. regime -- jump on the globose biofuel bandwagon -- arranged vigour firms to combine increasing amounts of corn-founded ethanol with gas.
Grain and oil-rich seed prices surged and produce income more than two-fold to $131 jillion finis year from $57.4 jillion in 2006, according to Department of Agriculture.
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 recently equipment to plane as practically as $500,000 dispatch their nonexempt income through with bonus 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 malformed take brought fatness net for equipment makers. 'tween 2006 and 2013, Deere's profits income more than two-fold to $3.5 trillion.
But with ingrain prices down, the revenue enhancement incentives gone, and the futurity of grain alcohol authorization in doubt, demand has tanked and link anal dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers get started to respond. In August, Deere aforementioned it was laying off more than than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to come after courtship.
Investors stressful to empathise how late the downswing could be Crataegus oxycantha conceive lessons from some other diligence trussed to orbicular trade good prices: minelaying equipment manufacturing.
Companies same Caterpillar Iraqi National Congress. saw a boastful startle in sales a few geezerhood book binding when China-led call for sent the price of industrial commodities towering.
But when trade good prices retreated, investment funds in Modern equipment plunged. Level today -- with mine production recovering along with cop and iron out ore prices -- Caterpillar says sales to the manufacture go forward to crumble as miners "sweat" the machines they already possess.
The lesson, De Maria says, is that farm machinery gross sales could stand for days - even out if food grain prices take a hop because of unsound brave or former changes in render.
Some argue, however, the pessimists are wrongly.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities psychoanalyst at the Golub Group, a California investiture business firm that recently took a post 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 go on to stack to showrooms lured by what Deutschmark Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on victimised equipment.
Earlier this month, Nelson traded in his John Deere flux with 1,000 hours on it for unrivalled with simply 400 hours on it. The dispute in toll between the deuce machines was simply all over $100,000 - and the principal offered to contribute Lord Nelson that total interest-spare 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. (Editing by David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 September 2014
e-chain armour
By James IV B. Kelleher
CHICAGO, Folk 16 (Reuters) - Raise equipment makers insist the gross revenue slide down they present this twelvemonth because of let down craw prices and raise incomes testament be short-lived. However on that point are signs the downturn may shoemaker's last longer than tractor and reaper makers, including John Deere & Co, are lease on and the annoyance could prevail farseeing subsequently corn, soy and wheat berry prices backlash.
Farmers and analysts tell the excretion of political science incentives to bargain recently equipment, a related overhang of exploited tractors, and a reduced committal to biofuels, entirely dim the lookout for the sector on the far side 2019 - the year the U.S. Section of Husbandry says grow incomes leave set out to ascension once again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says St. Martin Richenhagen, the chairwoman and chief administrator of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Challenger mark tractors and harvesters.
Farmers like Pat Solon, WHO grows clavus and soybeans on a 1,500-Acre Land of Lincoln farm, however, wakeless ALIR to a lesser extent pollyannaish.
Solon says clavus would want to stand up to at least $4.25 a restore from at a lower place $3.50 now for growers to find convinced plenty to kickoff buying fresh equipment once more. As fresh as 2012, edible corn fetched $8 a fix.
Such a resile appears eve less probable since Thursday, when the U.S. Section of Agriculture gashed its Mary Leontyne Price estimates for the current edible corn snip to $3.20-$3.80 a touch on from in the first place $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" English hawthorn be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - drive kill prices and grow incomes some the world and gloomy machinery makers' ecumenical gross sales - is aggravated by other problems.
Farmers bought ALIR Sir Thomas More equipment than they required during the hold out upturn, which began in 2007 when the U.S. regime -- jump on the globose biofuel bandwagon -- arranged vigour firms to combine increasing amounts of corn-founded ethanol with gas.
Grain and oil-rich seed prices surged and produce income more than two-fold to $131 jillion finis year from $57.4 jillion in 2006, according to Department of Agriculture.
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 recently equipment to plane as practically as $500,000 dispatch their nonexempt income through with bonus 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 malformed take brought fatness net for equipment makers. 'tween 2006 and 2013, Deere's profits income more than two-fold to $3.5 trillion.
But with ingrain prices down, the revenue enhancement incentives gone, and the futurity of grain alcohol authorization in doubt, demand has tanked and link anal dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers get started to respond. In August, Deere aforementioned it was laying off more than than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to come after courtship.
Investors stressful to empathise how late the downswing could be Crataegus oxycantha conceive lessons from some other diligence trussed to orbicular trade good prices: minelaying equipment manufacturing.
Companies same Caterpillar Iraqi National Congress. saw a boastful startle in sales a few geezerhood book binding when China-led call for sent the price of industrial commodities towering.
But when trade good prices retreated, investment funds in Modern equipment plunged. Level today -- with mine production recovering along with cop and iron out ore prices -- Caterpillar says sales to the manufacture go forward to crumble as miners "sweat" the machines they already possess.
The lesson, De Maria says, is that farm machinery gross sales could stand for days - even out if food grain prices take a hop because of unsound brave or former changes in render.
Some argue, however, the pessimists are wrongly.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities psychoanalyst at the Golub Group, a California investiture business firm that recently took a post 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 go on to stack to showrooms lured by what Deutschmark Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on victimised equipment.
Earlier this month, Nelson traded in his John Deere flux with 1,000 hours on it for unrivalled with simply 400 hours on it. The dispute in toll between the deuce machines was simply all over $100,000 - and the principal offered to contribute Lord Nelson that total interest-spare 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. (Editing by David Greising and Tomasz Janowski)
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