LONDON Agricultural and
industrial equipment giant New
Holland today reported a 1994 net
income of $355.7 million as the
company rebounded from a $56
million net loss in 1993. Net sales
for the year rose to $4.72 billion,
compared to $3.63 billion in 1993.
New Holland posted higher
shares in nearly all markets during
1994, prompting Chief Executive
Officer Riccardo Ruggeri to de
clare the year “a dramatic and out
standing success around the
world. The surge in industry sales
throughout much of the world,
larger New Holland shares in
nearly all markets, and the com
pany’s restructuring actions dur
ing the preceding three years were
all important to our success in
1994,” said Ruggeri.
“Our continuing drive to reduce
costs and improve our margins
paid off.” said Chief Financial Of
ficer Renato lodice, noting that the
company’s gross profit rose to
$1.16 billion, 44 percent higher
than the $BO3 million seen in
1993. By holding general, selling,
and administrative expenses in
check while cutting other costs
and operating expenses in half, the
company was able to increase its
operating income to $484.8 mil
lion, compared to $59 million in
1993, he said.
lodice also reported that New
Holland’s income before taxes
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New Holland
and minority interests was $401.4
million in 1994, after accounting
for financing and investment ex
penses. He said the favorable cash
flow in 1994 helped reduce third
party borrowing from $186.5 mil
lion to $125.9 million.
According to Ruggeri, “De
mand was strong in most of the
markets where we did business in
1994. We benefited from the re
bound in Europe and North
America and increased our tractor
share in both markets. Revenue
from the North American market
was nearly $l.B billion, up over 30
percent compared to 1993. In Eur
ope, revenues were also about
$l.B billion, an increase of 18 per
cent over last year.
“In Brazil, we had a remarkable
year, with tractor sales up 134 per
cent over 1993. Across Africa, the
Middle East, and the Pacific Rim
our sales were strong, and our
tractor share in this region increas
ed by over 16 percent in total. Re
venues from these growing mar
kets outside Europe and North
America totalled over $l.l billion
- 25 percent of our total revenue in
1994 and an increase of 5 percent
compared to 1993.”
Last year also brought stronger
construction equipment industry
sales in European markets served
by Fiat-Hitachi, the New Holland
Group’s joint venture which pro
duces hydraulic excavators and
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other carthmoving equipment for
sale in Europe, Africa and the
Middle East Fiat-Hitachi also in
creased substantially its presence
in the Middle East, and made
slight gains in Africa.
In North America, sales of both
tractor loader backhoes (TLBs)
and skid-steer loaders were up
Sunset Composting Meeting Set
NUMIDIA (Columbia Co.)
A sunset compost meeting will be
held at 6:30 p.m. on Tuesday, June
20, here at the farm of Dennis Lc-
Van.
Sunset meeting activities will
include:
* Update on compost utilization
research by Dr. Doug Beegle,
Penn State Extension.
* View com growing in plots
with manure, composted manure,
and synthetic fertilizer.
* Overview of Microbial Com
posting: Composting of Manure to
Alleviate Nitrogen Leaching Pro
blem by Dr. Judy Kipe-Nolt,
Bloomsburg University.
* Demonstration of rinse sys
tem on sprayer built by Dennis Le-
Van.
The sunset compost meeting is
an opportunity to see com being
grown in plots that received dif
ferent rates of raw dairy manure,
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over 1993, with share pins in
TLBs. However, Ruggeri said
New Holland's share of the North
American skid-steer loader mar
ket suffered due to limited avail
ability of the company’s all-new
line, a situation that wiU be remed
ied when expansion of the com
pany’s production facility in
Belleville. Pennsylvania is corn
composted dairy manure, and syn
thetic fertilizer.
This is the second year of re
search on Dennis LeVan’s farm
that focuses on the utilization of
composted manure. One of the
primary questions being invesd
pted is the availability of nitro
pn and phosphorous from com
posted manure. This research will
be useful for developing nutrient
management plans for farmers us
ing composted manure.
During the first year of re
search, com was grown in plots to
which different rates of raw dairy
manure, composted dairy manure,
and synthetic fertilizer were ap
plied. During the second year,
com in the manure and compost
plots is being grown without any
additional nutrients to assess the
Hie compost meeting is spon
sored by Penn State Extension,
Rodale Institute, and Columbia
County Conservation District For
additional information, contact the
Conservation District at (717)
784-1310 or the Rodale Institute
at (610) 683-1421.
Commodity Groups Urge Committee
To Consider Ag 9 s Contributions
WASHINGTON, D.C. The
American Soybean Association
has joined with other major com
modity groups presenting a letter
to the Senate Budget Committee
urging them to keep in mind the
sacrifices agriculture has already
made to balance past federal bud
gets.
ASA chairman, and farmer
from South Dakota, Larry Died
rich said, “What people need to
know is that a strong U.S. agricul
ture industry also puts millions of
dollars back into the economy as a
result of all the jobs it creates,
both farm-related and otherwise.”
With nearly one out of six
American jobs a total of 21
million attributable to agricul
ture, it is keenly important that the
U.S. maintain a healthy agricultur
al industry.
The letter acknowledges the im
portance of reducing the federal
deficit, but asks that agriculture
not be singled out for a dispropor
tionate cut. In support of their
position, the letter from the com
modity groups states, “Agriculture
has a history of contributing more
toward reducing the federal deficit
than other federal programs. Over
the past 10 years, farm program
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pleted this year.
Ruggeri cautioned that indus
try-wide sales for 1995 are not ex
pected to be quite as strong as in
1994. However, he expects further
increases in New Holland’s mar
ket share as a direct result of the
company’s new product introduc
tions.
residual nutrients from these
amendments.
The results from the trial at the
LeVan Farm and other sites where
this research is being conducted
will be discussed by Beegle from
Penn State. Dr. Judy Kipe-Nolt'
will discuss the work she is doing
with the Pocono Northeast Re
source Conservation and Devel
opment Area on the microbial
composting process for conserv
ing nutrients.
spending has been reduced from
$25.8 billion to $8.5 billion, a
two-thirds reduction, while total
federal spending rose by 50 per
cent. All this, despite the fact that
agriculture only accounts for 1
percent of the total federal spend
ing. If all other federal programs
had taken the same level of cuts
during that time, the U.S. would
now be basking in a substantial
budget surplus.”
Early hopes were that the most
recent round of the General
Agreement on Tariffs and Trade
would resolve trade disputes
among the world’s nations. GATT
made progress, but it did not elim
inate all of the problems. The
European Union still maintains a 3
to 1 advantage over the U.S. in
terms of its domestic support for
agriculture, and a 6 to 1 advantage
in export subsidies.
The U.S. has already reduced
its support for domestic farm pro
grams by more than the 20 percent
required by the Uruguay Round
GATT agreement. Further cuts
would result in the U.S. unilateral
ly eliminating farm program pro
tections. It would place our farm
ers at a gross disadvantage to their
overseas counterparts.