RDO Equipment Will Report Lower Results for Quarter.
FARGO, N.D.--(BUSINESS WIRE)--Aug. 14, 2000
Continuing Margin Pressures and Higher Expenses Reason for Loss;
Court Hearing Directs Parties to Arbitration
RDO Equipment Co. (NYSE:RDO) announced today that results for the quarter ended July 31, 2000 would be below current analysts' estimates and would likely result in a net loss of $1.2 to $1.8 million. The Company said that while revenues would show increases for the quarter and year-to-date, largely due to agricultural operations, those increases are not sufficient to offset continuing equipment and truck margin pressures and higher than anticipated expenses. The expenses are related to the consolidation and integration of the Company's acquired truck dealerships and are not expected to remain at current levels. The Company expects to report quarterly results during the week of August 21, 2000.
The Company also announced that its action against John Deere Construction Equipment Company and related parties is proceeding. A hearing was held last week in Minnesota state court and, as a result, parties to the action have been ordered to proceed to arbitration.
RDO Equipment Co. specializes in the distribution, sale, service, rental and finance of equipment and trucks to the agricultural, construction, manufacturing, transportation and warehousing industries, as well as to public service entities, government agencies and utilities. These operations, which consist of 54 retail stores in 9 states, include the largest network of John Deere construction and agricultural stores in North America, as well as Volvo and Mack truck centers.
The future results of RDO Equipment Co., including results related to forward-looking statements in this news release, involve a number of risks and uncertainties. Important factors (such as customer confidence, economic conditions, weather, actions of the Company's suppliers and competitors, and risks associated with the Company's growth strategies) that will affect future results of the Company, including factors that could cause actual results to differ materially from those indicated by forward-looking statements, are discussed in the Company's filings with the Securities and Exchange Commission. The Company's forward-looking statements are based upon assumptions relating to these factors. These assumptions are sometimes based upon estimates, data, communications and other information from suppliers, government agencies and other sources that are often revised. The Company makes no commitment to revise forward-looking statements, or to disclose subsequent facts, events or circumstances that may bear upon forward-looking statements.
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|Date:||Aug 14, 2000|
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