FarmTrac Troubles
- Thread starter gamble77
- Start date
montanaman
Gold Member
tommybr said:
I'm sure they are not thrilled but they have been through this stuff before.....
Ken
California
Super Star Member
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- Jan 22, 2004
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- An hour north of San Francisco
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- Yanmar YM240 Yanmar YM186D
Just thinking aloud...tommybr said:
Somebody said 5,000 unsold tractors. If Textron financed those to the dealers at $20,000 each that's $100Million that Textron won't receive as soon as they expected.
No wonder they seem to be squeezing everybody involved.
chh
Veteran Member
Check out Textron's earning reports and finacial statements for last year.(google textron) They could eat the investment on Farmtrac if they chose to and not even blink. They have 18 billion in backorders out of the Cessna and Bell divisions alone. Even if the total was as large as 100 mil it would just be a bump in the cash flow. Textron will do what is best for Textron and if that means sinking Farmtrac and getting a tax writeoff that is what it will be. Not to be a pessimist, but I've been on the bottom end of a corperate ladder before. What makes Textron the $$$$ is what will Textron will do.
I'm not trying to start an arguement, just don't bet the farm on that horse.
I'm not trying to start an arguement, just don't bet the farm on that horse.
agequipt
Member
There are many div of Textron so there is some concern. The magic # seems to be 54 mil. for inventory ,Plant and Equip. The problem is that is 2 yrs inventory, and we are in soft market. The bigger play in this is all the other dist. and mfg watchiig how this plays out. Textron Stands to loose more buisness than just Farmtrac. Beat the Dealers and watch them drop any line that uses Textron. The National Farm Mach shows next week might be interesting.
chh
Veteran Member
I bet Textron's risk analalysts are having a field day on this one. What ever losses they would actually have after liquidation of that $54 mil, legal repercussions and assorted fallout vs. what they have to gain by keeping Farmtrac in business. 2007 total cash flow for Textron was reported 1.3 bil. and projecting a sizable increase for '08.
One other thing to consider....there are many Farmtrac dealers who carry a second brand....Montana, Cub Cadet, etc. If Textron drives the Farmtrac dealers out of business it will come back to haunt them because Textron floorplans for so many other brands as well. I do know for a fact that Textron floorplans Montana and Cub Cadet and there are Farmtrac dealers who carry Montana or Cub as a second line.