CLAAS posts record sales despite pandemic

Despite a worldwide pandemic that wreaked havoc on global supply chains and the economy, German farm equipment company, CLAAS, still managed to post a 3.7 percent increase in sales to 4.042 billion euros.

Pre-tax earnings rose to 158 million euros.

CLAAS Group Executive Board CEO, Thomas Böck, said the company owed its success to its staffs’ ability to quickly adapt to the challenges of the corona crisis.

“During shutdowns of several weeks at nearly all of our production sites, extensive preparations were made to ensure that production could be restarted as soon as possible,” he said. 

“Thanks to the high dedication of staff and a close-knit logistics network, the supply to customers was maintained as best it could be.”

Despite the widespread challenges this year, CLAAS still managed to record several highlights across its key markets. This includes achieving a significant increase in sales in Eastern Europe and North America, as well as earning a Machine of the Year award for its LEXION 8000/7000 combine harvester, the JAGUAR 900 forage harvester and DataConnect cross-manufacturer interface at Agritechnica in November 2019.

The AXION TERRA TRAC, the world’s first fully-suspended half-tracked tractor which made its Aussie debut this year, also received very positive response from experts, CLAAS said.

The company spent 237 million euros in research and development and 131 million euros in capital investment this year.

Major projects included modernisation of the company’s combine harvester assembly plant at Harsewinkel, Germany, and its tractor plant at Le Mans, France; the construction of new sales centres in France and the UK; and the construction of a new high-bay warehouse in Hamm, Germany.

CLAAS expects sales and earnings to remain stable in the coming year.

“In view of the coronavirus pandemic and the international trade conflicts which are still smouldering, negative effects on sales and earnings cannot be ruled out,” Böck said.

“Further risks could arise from volatile producer prices and changes in the political framework for farmers in core markets.”