Montana in the News

[JerryG]

There was some talk about Montana and a deal in North Carolina a while back as well as something’s said about them buying another company. Here are a couple of articles.Montana
Arknasas Business

 

[gamble77]

Regarding the first article, and I have talked with my dealer rep and several others from FarmTrac...

UTB has no stake in FarmTrac NA anymore. UTB purchased the land for FarmTrac many moons ago so they could sell the UTB tractors and have a "firm" distribution center in the USA.

Since that time Escorts LTD (who makes the utility line of FarmTracs and is working on their own compacts) has bought the majority share of FarmTrac NA. The land that Montana has bought is 80% flood plain and cannot be built on without MAJOR land rennovation. So Montana bought the land from UTB with the understanding that Montana would sell and carry UTB tracotrs, the new "60-Series".

Just a little history, the reason FarmTrac and UTB split ways was two fold. First Escorts didn't want or have a need for the UTB supplied tractors. Secondly UTB couldn't get their engines approved to pass the newer EPA standards. Even on Montana's new brochure for the 60 series under motor type it states </font><font color="blue" class="small">( "Diesel, 2302.054 - must be EPA re-certified" )</font> .

Anyway, from all indications I am recieving FarmTrac will not have anything to do with Montana. None of these remarks are meant to tarnish Montana just wanted to share with everyone what I understand to be the truth. But again, I have been wrong before. /forums/images/graemlins/wink.gif

 

[Maka]

Good morning Gamble. Isn't all of that area a flood plain? I ask this not in jest but I believe the last major storm that went through had Farmtrac basically under water. I really don't know but it was brought to my attention that that whole area is prone to the potential.

Now, many of the Montana folks were previously with Farmtrac and I would think it possible that maybe your rep is repeating what he is told and maybe that is by design. This is a business where huge sums of money are being talked about, where aqusitions are made and companies make strategic moves that I bet very few people know about and that would probably or most certainly include dealer reps.

Here is the way I look at. Who knows what is happening. We know something is, but for sure, who can say. I am sure that the people who really know are not saying much and the rest is supposition and speculation. As for me, I will keep selling my products and watch how things develop.

One thing for sure is that if nothing else Montana is sure getting lots and lots of attention out of everything they do.

Maka

 

[gamble77]

Maka, your basically right about the flood plain aspect of it! /forums/images/graemlins/smile.gif

I guess the way I have been explained the situation though is that 80% of the land is SO far below flood plain that it cannot be built on.

Of course we are all going on somebody elses word here and we are all trusting that the persons word we are going on is the truth...but we can't all be right!

It will be interesting to see how it plays out. I do know however, that Escorts wants nothing to do with it (or at least thats what I have been told and have read /forums/images/graemlins/smirk.gif).

 

[powerstroke2000]

UTB must own something or Montana would be tring to buy it.
Second it is Farmtrac home town paper that is starting all the articles on this so are they printing lies about a company in their town?

 

[gamble77]

My friend, UTB owns the land that Montana is buying. This is why Montana will now be carrying the UTB product. Also, no newspapers are "spreading lies" that they know of...they are just taking what has been given to them by Montana.

 

[powerstroke2000]

Well it looks like you need to reread the article

Farmtrac is owned by two groups, Escorts Limited of India and Universal Tractors of Romania. Montana Tractors is negotiating with Universal Tractors to buy its 25 percent ownership.

They own 25% of what then.

And then there is little tid bit

Farmtrac President and CEO Vijay Raina did not return calls for comment.
I have met the idiot in person and you can't believe a word he says

 

[Maka]

This jumped out at me. </font><font color="blue" class="small">( Montana can increase its market share, which was 3.7 percent in 2005 ...... Montana sold some 3,300 tractors for revenue of $65 million through a network of 275 dealers. Miller says the company turned a profit, but he wouldn't disclose specifics.

The goal for 2006 is to reach $128 million on sales of 6,200 tractors and grow the dealer network to 400. )</font>

I know these numbers are correct. So, if Montana does sell double the numbers this year then Montana would have almost 8% of the market in the under 100hp range.

Wow, they have made some real headway.

Thanks,
Maka

 

[billbill1]

These figures are only true if Montanas numbers double and everybody else stays the same. If all brands increase sales, Montanas percent will be less. It depends on the total # of units sold. Montana is making a mark and sells a good tractor but I'm certain that every brand has goals to increase the total # of units sold.

 

[Maka]

Correct, but the article does state </font><font color="blue" class="small">( The Association of Equipment Manufacturers projects that tractor sales will decline by 7.6 percent in 2006, and that would follow a year in which sales were virtually flat - down by 0.8 percent in 2005. )</font>

So, in a decreasing market Montana is growing. Thus our % should be on track if we sell the projected number we should be selling.

Thanks,
Maka