Despite challenging market conditions and the trauma of an earthquake in 2012, the manufacturer of Landini, McCormick and Valpadana tractors continued to improve its profitability through increased efficiencies.
ARGO TractorsSpA and its subsidiaries recorded a 19% improvement in net operating result of €10 million (€8.4 million in 2011) on revenues of €472.9 million – a level similar to the preceding year of €479.1 million.
“Despite weakness in markets where ARGO Tractors has always performed particularly well, we are able to report a positive business trend and satisfactory operating results,” says Valerio Morra, chairman of the ARGO Group. “In May 2012, we faced disruption when an earthquake struck the area in which ARGO Tractors operates. It halted production for a time but the dedication shown by our employees ensured that we overcame the negative effects of this event.”
ARGO Tractors operates four factories in northern Italy manufacturing components and assembling tractors from 35hp to 230hp. It has distribution companies in a number of important export territories, including Europe, South Africa and the Americas.
The tractors are distributed in Great Britain by AgriArgo UK from offices and a parts distribution centre at Harworth, near Doncaster, South Yorkshire. The Landini and McCormick products are retailed through separate dealer networks, with the specialist Valpadana tractors handled by both.
Despite the contrasting performance of different markets in 2012, sales volumes enabled ARGO Tractors to maintain its global share and achieve 83% of sales revenues from exports.While market performance in central and northern Europe was “fair”, says Mr Morra, there was a considerable drop in demand for tractors in the countries of southern Europe, an area where ARGO Tractors sales are strong.
