TORONTO -- Massey-Ferguson Ltd. chairman Victor Rice said Friday he did not expect a quick recovery from a slump in farm machinery sales that led to a $73.5-million (U.S.) loss by his company in the first quarter of 1982.
Rice said talks were underway with Massey's lenders in Canada, France and Britain to seek their support for amendments to conditions of the company's $715-million refinancing agreement negotiated last summer.
A Massey spokesman confirmed that the company sought a cash injection of $100 million to $300 million and relief from cash interest payments.
'The sales outlook for the remainder of the year remains clouded by continued relatively high interest rates, coupled with depressed commodity prices,' Rice said. 'There are no signs of short-term recovery in the farm machinery market.'
The loss was not as large as the $81.4 million (U.S.) loss in the same period of 1981. In January, Massey had predicted a loss of $85 million.
The net loss included a provision of $10.4 million for unusual costs and a currency exchange loss of $8.4 million. The loss in the first quarter of 1981 was after a currency exchange gain of $16.9 million.
The net loss included a provision of $10.4 million for costs of termination payments to employees whose jobs have been eliminated, a spokesman said.
Consolidated world-wide sales for the quarter were $481 million compared with $532 million in the same quarter of 1981.
In the first quarter Massey reduced the cost of goods sold as a percent of sales by three percent and the market penetration for farm machinery in North America was increased, Rice said.
Consolidated world-wide sales for the quarter were $481 million compared with $532 million in first quarter 1981.
After adjusting figures for changes in currency values by translating 1981 sales at current exchange rates, sales in first quarter were up 4 percent, the company said.
