Farm machine maker Buhler makes hay with '08 profit

Winnipeg's Buhler Industries Inc. posted a yearly profit more than three times what the company made in 2007, thanks to growing farm sales and a new distribution network in Russia, Buhler said on Tuesday.

Buhler, which makes tractors, combines and other types of heavy farm machinery, earned $21.9 million for the year ending Sept. 30. That worked out to a profit of 88 cents a share and was up substantially compared to last year's earnings of $6.9 million, or 27 cents a share.

"The stability of the Canadian dollar and increasing demand for high horsepower tractors in overseas markets had a positive impact on revenue," Buhler said in a short press release announcing its earnings.

The company did not issue separate fourth quarter earnings.

Buhler had revenue of $218.955 million for fiscal 2008, an increase of almost 32 per cent versus $166 million in sales for all of 2007.

Three month stock chart for Buhler Industries Inc.

Buhler benefited from its takeover by Russian combine maker Rostelmash, which bought 80 per cent of the Canadian company for $7.25 per-share in November 2007.

In its third quarter financial statements, Buhler said access to the Russian market was helping its sales and production.

"Tractor shipments were increasing as our supply chain is catching up to demand," the company said in an earlier statement.

Only approximately five per cent of Buhler's shares are publicly traded. As a result, since Nov. 11, Buhler's volume peaked at 3,000.