ARGO Tractors SpA achieved a 16% increase in sales revenues in 2011 as greater demand for its Landini, McCormick and Valpadana products was met by an 18% uplift in production volume.
ARGO Tractors production of Landini, McCormick and Valpadana tractors in 2011 was 18% up on the year.
Consolidated financial statements to the end of December 2011, approved at a shareholders meeting chaired by company President, Valerio Morra, show sales revenues grew to €479.1 million (£392.7 million) in 2011.
Measures to reduce running costs and working capital significantly improved the company’s break-even position. As a consequence, earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by more than 50% from €26 million (£21.3 million) in 2010 to €39.7 million (£32.5 million) in 2011.
Earnings before interest and taxes (EBIT) doubled to €26.5 million (£21.7 million) and the 2011 net operating result amounted to €8.4 million (£6.88 million).
“The results achieved in 2011 confirm our company’s ability to create value, with a two-digit increase in both turnover and profitability,” says Valerio Morra. “The actions taken to limit overhead costs and reduce working capital improved our margins, despite the relentless competitive pressure on prices implemented by our competitors.”
Mr Morra adds: “Substantial investment in new products, increased attention to markets with high growth potential and improved, more efficient manufacturing processes are providing solid foundations that will hopefully enable us to achieve incremental results with regard to revenue and profitability.”
ARGO Tractors, with its headquarters in Fabbrico (Reggio Emilia, northern Italy), is part of the ARGO Industrial Group. It manufactures tractors under the Landini, McCormick and Valpadana brands and has tripled its production volumes in little more than 10 years. It has 1600 employees and four manufacturing/assembly plants, eight business branches in various parts of the World, 130 overseas importers and 2500 dealers. These statistics illustrate that the Landini, McCormick and Valpadana brands have achieved a significant standing in the tractor market and represent one of the most important international players, which confirms the value of a successful group strategy.
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