Despite the deepening gloom within the Irish machinery market, results in from the big three, John Deere, Case New Holland and AGCO, suggest that there is still plenty of life left in the industry yet.
All three have recently reported big sales gains in the first quarter with John Deere leading the pack.
Worldwide net sales and revenues for the company increased 32% to $12.66 billion, in the most recent quarter.
Getting the tractors built
CNH Industrial was also a winner reporting first quarter consolidated revenues of $5.3 billion, a 15% increase compared to the first quarter of 2022.
AGCO had a pleasing first three months as well. The company enjoyed record net sales of $3.3 billion, for the year so far, up 24% year-over-year.
The reasons given for this bountiful start to the year revolve around easing of the supply train allowing more machinery to be completed and sold.
Dealers are also restocking their inventories which will show as income for the manufacturers but not the dealers themselves, until it sells to the end user.
Precision ag sales boom
One outstanding factor that helped John Deere with its results was the performance of its Production and Precision Agriculture sector which recorded a 55% increase in sales over this time last year.
All three companies note that although the price of commodities has eased, they are still strong, but in Ireland it is likely that the full effect of the dramatic decrease in milk price has yet to be felt at the tractor factories.
AGCO is once again using the opportunity of its latest earnings call to promote Fendt as its leading brand.
This has become something of a theme over the last year or so and the German tractors are being promoted as a quality offering in a way that CNH and John Deere cannot differentiate between ranges.