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Väderstad reports record earnings
Published on 19 February 2019
Väderstad reports record earnings
Swedish cultivation and seeding specialist, Väderstad, has reported a 27 percent jump in sales to achieve a record turnover of more than €300 million (AU $474 million) in 2018.
Net profit after financial items amounted to €11.8 million (AU $18.65 million).
The Väderstad range, which includes Seed Hawk precision air seeding systems, Tempo Rapid seed drills, Carrier disc cultivators and Top Down disc-tine cultivators, is distributed locally via selected CLAAS Harvest Centres and independent dealerships.
Speaking during a recent visit to Australia, Väderstad President and CEO, Mats Båverud, says the results were achieved in an otherwise flat global market. “I am very pleased to report that this growth is purely organic and reflects our commitment to meeting customer needs and our growing global presence,” he says. “More than 90% of our sales were derived from exports.”
The company expects continued growth in 2019 on the back of a reasonably-stable global economy and low interest rates. “Pre-season sales for 2019 have been strong right across our range and the signals are positive from most of our markets,” Mats says. “Väderstad’s machines are designed to perform several operations in one pass, delivering efficiency and saving resources and capital for the farmer. We have worked hard to making our existing machine more efficient and more user-friendly. Our innovative concepts are appreciated by our customers and we are looking positively at the future. We are continuing to invest in product development of both new and existing products, so that we can meet the high demands of our customers.”
Mats recently spent a week in Australia visiting customers and dealerships throughout Victoria and southern NSW. “Väderstad is driven by the needs of its customers, wherever they are,” he says. “We want to understand the unique challenges faced by Australian farmers and strengthen our relationship with our local distributor so that we can work more efficiently to meet the needs of our customers. The Australian market is important to us – we need to know more and learn more.”
Senior Vice President Global Sales and Marketing, Mattias Hovnert, says he was impressed by the scale of Australian farming. “Obviously, your farming systems are quite different to those in Europe, but we can see enormous potential for our products in Australia,” he says. “Your climate is far more challenging, that’s for sure, but precision is the key and that’s something we do very well. Seed Hawk already has a very good following here in Australia and there is growing interest in our Tempo and Rapid drills as well. With this comes the need to manage straw whilst maintaining soil moisture, and our Top Down and Carrier precision cultivators answer this need perfectly.”
Väderstad was established in 1962 by Rune and Siw Stark, who ran a 30 hectare farm outside the village of the same name in Sweden. Today, the company that employs more than 1350 people at its two manufacturing plants in Sweden and Canada.
“The factory started on the Stark family farm and progressed a couple of hundred metres down the road to the village – now we are the village,” Mats says. "We remain a family-owned business and those values are important to our customers, most of whom are family-owned businesses as well.”