Claas has enjoyed a hugely successful 2023, reporting an increase in turnover of almost 25% over the previous fiscal year, with sales in North America and Europe leading the charge.
The company also celebrated 50 years of self-propelled forage harvester production, and 20 years of standard tractor manufacture, both significant milestones in the company’s trajectory.
Jan-Hendrik Mohr, chief executive officer (CEO) of the family-owned company. The substantial leap in sales in the past year reflects the high demand for agricultural equipment.
He also noted that once the supply chain situation eased following the global health pandemic and Suez Canal incident, Claas was able to systematically tackle the order backlog and deliver its agricultural machinery to its customers around the world.
Overall, the company generated sales of €6.1 billion, equating to an increase of 24.7%. Sales again improved significantly in North America, and especially in Europe.
Another notable achievement was the tripling of income before taxes. This particular indicator rose to €522.3 million from €166.3 million in the previous year. Net income increased to €347.1 million.
This financial performance was further boosted by the successful issuance of €350 million in debt certificates, and the increase of the syndicated loan to €850 million, putting the company in a very strong financial position, according to CEO Henner Bottcher.
Claas confounds critics
It has been 20 years since Claas purchased the Renault tractor factory at Le Mans; a brave move at the time, as the tractor manufacture was widely in decline as they were getting bigger and fewer, a trend that started in the 1970s and continues today.
Claas has succeeded where many thought it would fail, and has since produced around 200,000 units at the facility, confirming that there is a strong demand for an alternative to the large corporate brands, and that if a company gets the product right, then it will sell.
The confidence that the company has in its business model and product range was clearly on display at Agritechnica where its stand was bright and airy with the engineering involved in the latest machines fully exposed to the critical eye of farmers and contractors.
Looking forward however, the company sounds a note of caution pointing out that it is preparing itself for a more difficult year ahead.
Claas noted that although the order backlog is returning to normal, the pace of economic activity is slowing perceptibly in its core markets in central and western Europe and North America,
