Ralston
ST. LOUIS, Mo. - Ralston
Purina Company recently an
nounced that it has reached an
agreement in principle to sell
Purina Mills, Inc., its U.S. animal
feed business, to BP Nutrition Ltd.
Terms were not disclosed.
BP Nutrition is the food and
agriculture subsidiary of The
British Petroleum Company and
operates a major feed business in
Europe through Hendrix In
ternational. Purina Mills, a
BUSINESS NEWS...
Case Buys IH Australian Assets
RACINE, Wise. - J I Case
(Australia) Pty. Ltd. has pur
chased selected assets of In
ternational Harvester Australia
Ltd. and International Harvester
Credit Corp., which will provide
interim support services during
the transition.
John A. Borden, Case IH
executive vice president,
Marketing, said consolidation of
the Case and IH Australian
operations “creates the largest
agricultural and construction
equipment network in Australia
and gives Case IH the potential to
market a complete line of
agricultural and construction
equipment in Australia.”
According to Borden, Case IH
will consolidate the Australian
distribution organization into its
worldwide dealer network, just as
it did in Europe and the U.K. The
consolidation will give Case IH
approximately 200 distribution
outlets in Australia.
Purchase of the IH Australian
assets completes the acquisition by
Tenneco Inc. of selected In-
Automatic’s Scraper Suitable
for Lawn
PENDER, Nebr. - A new one
half cubic yard wheeled carry-all
scraper designed for lawn and
garden tractors has been in
troduced by Automatic Equipment
Mfg. Co.
The RO-5 Mini Mover can be
operated with as little as 12
drawbar h.p. and is ideal for small
land tailoring in lawn and garden
work. No hydraulics are required
to operate the Scraper, but a
drawbar lift system is needed on
The RO-5 Mini Mover can be operated with as little as 12
drawbar h.p.
Purina Sells Feed Business To BP Nutrition
Ralston Purina Company sub
sidiary, is one of the oldest feed
companies in the U.S.
The acquisition is subject to
reaching a definitive agreement
and to Board approval by the
parent companies. The expected
closing date of the sale is October
1,1986.
Commenting on the sale,
William P. Stiritz, Chairman and
t Chief Executive Officer, said,
“This was a very difficult decision
temational Harvester agricultural
equipment assets around the
world. In February 1985, Tenneco
purchased the IH ag assets in
North America and the United
Kingdom, and in May 1985 pur
chased the IH ag assets in Europe.
Both J I Case and International
Harvester have been selling
agricultural equipment in
Australia since before the turn of
the century. J I Case Australia
Pty. Ltd. was established in 1957
and the company opened a major
manufacturing facility in St.
Marys, Australia, in 1975. The St.
Marys plant currently makes
components and attachments for
Case loader/backhoes, wheel and
crawler loaders, dozers and skid
steer loaders, as well as Case IH
agricultural equipment. Case
Australia also operates an ad
vanced service parts supply
operation linked to the Case IH
Global Parts Network.
Case IH is a worldwide
manufacturer and marketer of
agricultural and construction
equipment. Case IH is an affiliate
of Tenneco Inc., Houston.
Tractors
the tractor. The drawbar is used to
control loading and spreading but
the scraper unloads by trip lever
action, triggering the roll-over
bucket.
For further details contact the
manufacturer, Automatic
Equipment, Department NR, Box
P, Pender, Nebraska 68047, phone
402-385-3054, or the distributor,
Ryder Supply, Box 219, Cham
bersburg, Pennsylvania, 17201,
717-263-9111.
for us because the animal feed
business represents the origins of
our company. In addition, Purina
Mills is the market leader in its
industry and has consistently
performed extremely well. ’ ’
Stiritz continued, “A critical
element in our decision was our
concern for Purina Mills em
ployees and their future. Under BP
Nutrition’s ownership, I am
confident that Purina Mills em
ployees will continue to benefit
from a favorable working en
vironment and employee benefit
programs.
“In short,” Stiritz added, “BP
Nutrition is acquiring a premier
franchise that fits well with their
long-term business plans.
Although we have been pleased
with the performance of Purina
Mills and had not actively sought a
buyer, the sale will enable Ralston
Purina to focus its efforts on an
expanding base of consumer
packaged goods business*" As n
Massey Reports First-Quarter Profits
TORONTO - Massey-Ferguson
Limited, which officially became
Varity Corporation by shareholder
vote recently, posted net income of
5.9 million U.S. dollars in the three
months ended April 30, 1986,
compared with net income of
$400,000 in the same period a year
earlier.
Improved results reflect
management actions finalized
earlier this year to restore the
balance sheet and divest money
losing operations. Therefore,
results for the opening period of
fiscal 1985 have been reclassified
to show the former Combines
Division as discontinued
operatons. These operations have
become part of Massey Combines
Coiporation, of Brantford, On
tario, in which Varity Corporation
holds a minority interest of 45
percent.
The Company's continuing
operations have now been
profitable for nine consecutive
Simplicity Is Key To New Massey Combine
DES MOINES, lA. - Massey
Combines Corporation announces
the addition of the new 8560 rotary
to its line of products. According to
Vice President Richard A. Brown,
the 8560 provides farmers with
unmatched harvesting capacity in
a popular-sized rotary combine.
The 8560 uses a unique four-vane
front beater - a Massey “ex
clusive” - to smooth and ac
celerate the crop into the inlet
section of the rotary while forcing
rocks into the stone trap below.
The front beater allows “full
circle” distribution of the crop
around the inlet section,
eliminating the major bottleneck
of other rotary designs.
Hydrostatic rotor drive
eliminates drive belts, chains and
gear boxes to the rotor drive and
provides infinitely variable rotor
speeds ranging from 0 to 920 rpm.
The operator can easily determine
the correct speed for the crop and
quickly respond to changing
conditions simply by moving the
single control lever on the console.
The rotor itself has the largest
working area available in the
industry, except for Massey’s 9720
model.
With a concave area of 2,205
square inches - 445 square inches
more than the closest competitive
machine - the 8560 offers farmers
a substantial increase in threshing
and separating capacity compared
to other rotary designs.
An adjustable deflector in the
discharge area distributes straw to
result, we believe this transaction
will benefit and strengthen the
long-term future of both com
panies.”
William M. Jones, Chairman and
President of Purina Mills, Inc.
said, “I am enthusiastic about this
transaction because it offers
strong mutual benefits to both
organizations. Purina Mills will be
linked to a company that has
animal agriculture as its central,
long-term strategic focus. I am
convinced that Purina Mills will be
able to aggressively pursue its
leadership role in the feed business
consistent with its current
strategies. As a result of licensing
of trademarks and distribution of
Purina pet foods in the United
States, we foresee a continued
working relationship between
Ralston Purina and Purina Mills in
the years ahead.”
With the sale of Purina Mills,
more than 90 percent of Ralston
Despite
‘Difficult Market’
quarters for the first time in nearly
10 years.
The sales increase in real terms
was seven percent, achieved in
very difficult market operations.
World markets for farm tractors
and diesel engines have softened
considerably, and sales of the MF
Industrial Machinery Division
were curbed by a two-week strike
at the main plant in Manchester,
England.
Victor Rice, Chairman and Chief
Executive Officer, told the annual
meeting of shareholders that all of
the Company’s branded-product
divisions improved sales per
formance in spite of sluggish
conditions in most major markets.
“In the markets we serve, no sale
comes easy,” he observed. “Every
sale has to be earned.”
Rice said gross margins suffered
slightly as a result of the
aggressive price discounting that
has characterized North American
farm machinery markets in recent
Only 11 drive belts are used on Massey's new 8560 rotary
combine.
an optional straw spreader or The 8560 is powered by a six
chopper. Straw may also be cylinder, 360 cu. in. Cumnuns
discharged directly to the ground turbo-charged, inter-cooled
for haling engine. The engine is mounted at
There is a new family of Kwik- U> e rear of the machine, away
Switch headers and comheads from the control center for easie
available for the Massey 8560. access, better visibility and
Designed for smooth feeding, the quieter operation,
heads are easily changed to save Delivery of the 8560 to Mass y
time when switching from crop to Combine dealers throughout
crop U.S. and Canada is expected this
summer.
LANCASTER FARMING
FOR COMPLETE
AND UP-10-OATE
MARKET REPORTS
Purina’s earnings will come from
consumer packaged goods
products. The company holds a
number of market leading
positions in billion-dollar con
sumer industries including pet
foods, bread and snack cakes and
the recently acquired battery
business. Ralston Purina brand
names include Purina Dog Chow
and Cat Chow, Hostess, Wonder,
Chex cereals. Chicken of the Sea
tuna, Eveready and Energizer.
The Ralston Purina In
ternational feed business will not
be affected by this transaction.
Commenting on Ralston Purina’s
international animal feed
operations, Stiritz said, “These
businesses ar,e not for sale. The
RPI Group is having a strong year
and it has the resources and op
portunities to continue to increase
its contribution into the future. In
several countries we are actively
looking for ways to increase our
presence.”
years. Actions by competitors to
reduce dealer inventories through
price-cutting and other sales in
centives have intensified, he noted.
Rice said the Company does not
expect improved demand for
Massey-Ferguson farm machinery
in 1986, since sustained weakness
and uncertainty dominate most
key markets.
Shareholders voted over
whelming support of a proposal to
change the Company’s name. Rice
said the change will not affect the
Company’s branded-product
divisions -- Massey-Ferguson
Tractors and Farm Equipment)
Perkins Engines, MF Industrial
Machinery, and Pacoma fluid
power products - which will
continue doing business under
their present identities.
The new corporate name is a
derivative of Varity Plow Works,
which became part of the Massey-
Harris Company nearly a century
ago.
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