increase font size
Claas manufacturing site in Germany.
Despite conditions in the farm machinery industry, which can only be described as difficult, the German-headquartered Claas Group has reported net sales of €5 billion for the 2024 financial, around €1.1 billion, or 19% lower than the corresponding period in 2023.
A company spokesperson says tight producer prices, elevated interest rates, extreme weather conditions and geopolitical tensions have all combined to elevate levels of uncertainty, meaning farmers and contractors have been hesitant in buying new tractors and machinery.
Despite the drop in sales, the business has successfully navigated a tough 2024 fiscal year, ending on September 30, delivering an operating profit before depreciation of €584 million compared to €769 million in 2023, alongside a net income of €253 million, against €347 million in the previous year.
“We have performed well in the highly competitive agricultural machinery market,” says CFO Henner Böttcher. “Despite a significant decline in sales, our strong earnings demonstrate our resilience. Today, it is paying off that we adapted our structures and processes early, amid a phase of high market dynamics and increasing geopolitical uncertainties.”
Claas chief executive officer Jan-Hendrik Mohr says that the business has remained on course and managed costs efficiently, while also proactively advancing the business.
“We have again increased our R&D expenditure to over €330 million and made targeted investments in future projects, new technologies and our production network to ensure sustainable growth and drive innovation.”
Targeted investments in the production network have seen modernisation work currently taking place at several Claas plants. At Bad Salgau (forage harvesting technology) in Germany, the infrastructure and production facilities have been updated to facilitate the expanded product portfolio, and expand production capacities. The Harsewinkel plant (combine harvesters, forage harvesters and Xerion tractors) will be modernised with more automated systems soon.
Looking ahead, Claas says that the current industry trend of reduced investments by farmers, most of whom have seen producer prices fall sharply, suggest that with no upward trend currently in sight, a moderate decline in sales for 2025 and a noticeable decline in income before taxes is expected.
Claas has announced the arrival of its new Jaguar 1000 series forage harvesters, taking power delivery beyond 1100hp, aimed at achieving 20% more throughput, better chop quality, greater efficiency and more operator comfort.
With the biennial Agritechnica Event just a few months away, manufacturers are offering sneak peaks at new innovations, with Claas recently highlighting its new Cerex 700 RC round baler.
The arrival of new F8 and F9 designations for its 8000 and 9000 series forage harvesters, signals a swag of upgrades from John Deere, highlighted by topping the 1000hp mark for the first time.
Waikato-Bay of Plenty farmer Hugh Jackson recently secured this year’s FMG Young Farmer of the Year title in Invercargill.
Ashburton-based Carrfields has signed an agreement with Manitou to take over the distribution and retail rights for Manitou Agricultural Equipment covering the lower North Island and the South Island, effective August 1, 2025.
Brett Wotton, an Eastern Bay of Plenty kiwifruit grower and harvest contractor, has won the 2025 Kiwifruit Innovation Award for his work to support lifting fruit quality across the industry.
Academic Dr Mike Joy and his employer, Victoria University of Wellington have apologised for his comments suggesting that dairy industry CEOs should be hanged for contributing towards nitrate poisoning of waterways.
Environment Southland's catchment improvement funding is once again available for innovative landowners in need of a boost to get their project going.
The team meeting at the Culverden Hotel was relaxed and open, despite being in the middle of calving when stress levels are at peak levels, especially in bitterly cold and wet conditions like today.
A comment by outspoken academic Dr Mike Joy suggesting that dairy industry leaders should be hanged for nitrate contamination of drinking/groundwater has enraged farmers.
OPINION: The phasing out of copper network from communications is understandable.
