Show FARM EQUIPMENT OUTLOOK When all the 1978 figures available and farm equipment sales are expected to show only a very modest gain for the both 1977 and 1978 will no doubt go into the record books as lean sales years for this important segment of running well below prior historical Looking ahead we see some potential trouble spots for several major labor contract renewals including those involving the agricultural equipment unions barring lengthy disputes during the ensuing prospects are relatively bright for an improved sales climate compared with In recent market the agri-equipment common stock leaders have evidenced some In this segment has been outperforming the more comprehensive stock market averages of Although some time will still have to pass before a satisfactory base for better performance is it just may be that investors are already looking ahead to recovery in this SPLINTERED INDUSTRY In the year just the farm implements business probably racked up total sales volume in excess of It's important to note that several industrial giants have operations in this Although farm equipment firms are essentially machinery there are a number of industry participants presently deriving the bulk of their sales from activities that are Such is the case with International FMC and Ford Motor investors should consider the percentage contribution which is derived from farm equipment versus the total revenue If this ratio is ascertained and the pattern of growth or the relative trend of financial results can be more accurately an analysis of the farm implement industry yields very few OVERSEAS POTENTIAL Certainly the growth and development of American agriculture has placed it head and shoulders above its counterparts In on several occasions in the abundant American farm supplies have bailed out foreign countries when crop failures occurred in various Part of America's agricultural advantage can be attributed to the development and widespread use of high-technology farm In assessing prospects for farm equipment demand in the year one must not overlook the distinct possibility that foreign markets could provide a significant sales In recent years a substantial increase in demand has been registered for and horsepower These units are presently being produced only in North America and the Soviet Along with this the recent pounding of the U.S. dollar to historically low levels against major European currencies gives American products a much greater price advantage versus foreign goods PROFIT Concurrent with the most recent economic rebound which began in farm equipment producers have had the benefits of earnings and most of them are now in better financial the trend to bigger but fewer farms served by fewer workers This requires an increasing use of Another positive development is the capacity expansion which domestic farm equipment makers have They are now in a position to capitalize quickly on any increase in demand at the retail On we regard the outlook for companies producing farm equipment as generally assuming they can be assured of a relatively healthy economic climate in which to conduct their |