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.
Following the €1.6 million investment in a prototype workshop in early 2025, Claas has invested an additional €3.3 million at its Metz-Woippy baler production plant to increase production capacity.
After its flagship 1200 model set a Guiness World Record in forage harvesting, mopping up 4096 tonnes of whole crop silage in 12 hours, Claas has picked up a brace of awards from the American Society of Agricultural and Biological Engineering (ASABE).
Last month's Agritechnica event led to a wide group of manufacturers celebrating successes when the 2026 Tractor of the Year Competition winners, selected by a panel of European journalists, were announced in Hanover Germany.
The recently released Claas Jaguar 1000 Series has seen its flagship 1200 set a new official Guiness World Record in forage harvesting, harvesting 4096 tonnes of whole crop silage in 12 hours, alongside an efficiency record of just 0.49 litres of fuel consumption per tonne of silage harvested.
Innovation awards at international agricultural events are always on the wishlist of manufacturers.
Potatoes New Zealand has congratulated Peter Reynolds of TA Reynolds Ltd in Pukekohe on being awarded the Horticulture New Zealand Bledisloe Cup, recognising a lifetime of service and contribution to New Zealand horticulture.
Signing up to a benchmarking tool is not about competition, but about improving collectively, says Ximena Puig and Alvaro Luzardo who are 50-50 sharemilkers at a 164-hectare (effective) dairy farm in Eketāhuna in the Lower North Island.
A leading British farming politician says he's impressed with the positive attitude of New Zealand farmers that he met during his recent trip here.
OPINION: With 10,500 dairy farms, New Zealand continues to punch above its weight around the world.
The Southern Dairy Hub (SDH), which runs a demonstration farm for South Island farmers, has a new general manager.
Esther Guy-Meakin has been announced as the new chief executive of the New Zealand Meat Board (NZMB).
