LS at the Louisville Farm Show

Olympus · Feb 14, 2014

My dad and brother went to the big farm show this week and I told them to look for LS. They did not know of LS, they are big JD ag tractor people. Dad called this morning said he found the LS booth and that he was very impressed. He said they had a very large booth in the main hall. He said based on that, he knew they were a serious company. He says only the biggest companies get the opportunity or can afford that much floor space in the main hall. He said he spent a good bit of time talking to the reps and he was very impressed. He gave them his seal of approval, which is pretty good coming from him being hardcore JD.

joemd11 · Feb 14, 2014

What, no pics!!!

GManBart · Feb 14, 2014

That's interesting feedback...thanks! The more I see, and read, about them, the more I think we're seeing the influence of their LG roots. Not only are they essentially a spinoff of LG, they're owned by the same family. That means they have deep pockets, even if we don't see it on annual financial statements.

The crazy thing is, when I looked at the most recent annual reports for Deere, and LS Group, the numbers were surprisingly close. Looking at 2010, Deere had $26B in revenue and LS Group had $25.2B. Granted, the LS Group covers more than just tractors, but so does Deere. I think that's why they're making such a big move, and spending the big bucks...they have the cash backing to be a major player, and want to do what Hyundai and Kia (related to LS actually) have done to the Japanese car companies. 10 years ago Hyundai cars were very much value/budget oriented, and now you can spend $75K on one (Equus)....the Koreans are coming!

Olympus · Feb 14, 2014

I completely agree. I have used the same comparison with Hyundai and Kia to other people. As long as the company continues to invest in these tractors, I think we're going to see the emergence of a new major player.

I know Mahindra gets a lot of talk, but from what I've seen just in looking at their 22-30hp models, LS has them beat in terms of value and pricing. I'm picking LS to overtake Mahindra in the near future.