Tractor manufactuer Valtra has a successful 1999

The difficulties in the North-American farming product export, which started in the autumn 1998, reflected in the whole farm machine industry until the end of last year. However, the demand in Europe, on an average, stayed at the level of 1998, and at the same time Valtra increased its sales in the EU and EFTA areas with 9%.

Valtra manufactured altogether 15 000 tractors in 1999, the total amount being approximately the same as in the previous year. Yet, the demand in the other main market area of the company, South America, decreased approximately with 12 %, but at the same time Valtra manufactured 9125 tractors in Europe (the amount being 8400 tractors the previous year). The turnover of the company, 3.5 billion FIM (592 million EUR) was on the same level as in the previous year, despite the considerable depression in the industry. Furthermore, the operating profit of the company totalled 177 million FIM (30 million EUR), thus increasing with six percent.

The operating profit of Valtra accounted for 5 % of the company´s turnover. The operating profit of the three main competitors fluctuated in between -1%…+1%, and their total turnover decreased with almost 20 % in comparison with the results of the previous year. Valtra is now the fifth biggest western tractor manufacturer in the world, concentrating mainly on organic growth. The future goal is to grow the market share, especially in the big farming countries of the world.

Electronic business and other new products During 2001 Valtra is launching the new tractor model series called the S Series, the prototype of which was firstly introduced in the Agritechnica Exhibition in Hanover in November 1999. The S Series raises the Valtra models up to the 260 horsepower class. As a whole, the sales developed well in the big European markets. Thanks to the dealer co-operation with Claas, the European leading harvesting equipment manufacturer, the sales increased in Great Britain and Germany. Furthermore, the French market was under a positive development as well.

The new, low revolution tractor, developed in co-operation with Valtra subsidiary, Sisu Diesel, is one of the Valtra innovations as well. The engine has high torque and power, even at low revolutions. Due to this, the noise level and fuel consumption are decreased, and thus a lower emission rate is reached. The oil-change periods are doubled.

The 1999 Finnish Quality Award was given to Valtra´s European Tractor Operations. The quality development covers all the operations, including sales, management, company subcontractors and contract maintenance services. In addition to this, Valtra takes an active part in developing the quality systems of its suppliers.

In January 2000 Valtra opened a new Internet Service "Meidän Valtramme" ("Team Valtra") to the Finnish customers. The Internet service was started in Finland due to the fact that in Finland the number of Internet users is relatively the highest in the world. In the future the e-business will be a significant competition advantage to Valtra, because both the unique customer order system and the near-to-customer sales system can efficiently be combined with the e-business. The goal is to develop the customer co-operation as well as to offer new services. During the first two weeks there were over 1000 user registrations, and by the end of February the amount was already more than 2000. The Swedish version of the Internet service will ready to use in the spring 2000.

In the future the integration of information technology, built in the tractor, as well as the new services will create an interesting combination, thanks to which Valtra can achieve a totally new competition advantage for itself.

Success in the engine manufacturing as well In 1999 Sisu Diesel reached, again, a record in manufacturing diesel engines: altogether 19 887 diesel engines were made, and the production rate rose with 9 % in comparison with the previous year. In addition to Valtra Valmet tractors, Sisu Diesel delivers engines also to other Partek products as forest machines and container handling systems. The external customers are other tractor and threshing machine manufacturers. The biggest growth in deliveries was reached in the sales to the Austrian tractor factory Steyr, which belongs to the CNH-Group. Sisu Diesel is now the most important engine supplier for Steyr tractors.

In Brazil most of the Valtra Valmet tractors are equipped with Sisu Diesel engines, which are assembled locally. Only approximately ten main parts of the total 340 engine parts are delivered directly from Finland.

Although it is estimated that the total demand for tractors will slightly decrease in Europe in 2000, Valtra still believes in its market share growth, especially due to its strongly developing dealer network and the unique customer order system.