Zetor Group’s profit in the first three quarters of 2011 reached CZK 90m.

Brno, December 21, 2011  

Traditional Czech tractor manufacturer, the Zetor Group, achieved consolidated profit before taxes of CZK 80 million during the first three quarters of 2011. During the first nine months a total of 3,305 tractors were produced, whereas the plan for the whole year is to manufacture 4,465 tractors. At the end of 2011 the company is to introduce a new feature – automatic regulation of the rear three-point linkage, the HitchTronic.

Since the beginning of 2011 ZETOR TRACTORS a.s. has been regaining its position in its respective markets by achieving sales figures which the company had had until the 2009 financial crisis. Zetor tractor sales in some countries represented an improvement in the national market share. These countries include the Czech Republic as the domestic market, as well as Slovakia, Norway, Sweden, Denmark, Finland, Serbia, Lithuania, Latvia and Greece. Tractor deliveries to Iraq have been resumed, which we think is the biggest commercial success of this year, thanks to a substantial public contract awarded by the Iraqi government. This contract represents the delivery of 1,500 tractors, thanks to which ZETOR TRACTORS a.s. has resurrected the long-term tradition of deliveries of tractors and components to this region which had existed until the 1990s when it was interrupted by the Gulf War.  

Zetor has also been expanding to new markets this year, especially into countries in Africa (RSA, Sudan, Algeria) and to Georgia. Trade cooperation with Cuba is beginning to look very promising as well. Other commercial successes of this year include the introduction of a new tractor model, the Zetor Forterra 135, fitted with a high-performance engine, also offering excellent fuel efficiency.  

“We have aligned our entire cost management to make it consistent with the number of tractors and components manufactured. In addition, we have consolidated the cost control and evaluation system implemented at individual cost centres. These changes have also significantly contributed to the overall financial performance. Our streak continues,” said Marián Lipovský, Deputy General Manager and Production Manager, ZETOR TRACTORS a.s.  

During the first three quarters of 2011 Zetor manufactured a total of 3,305 tractors. By the end of the year the number of tractors sold is expected to reach 4,465. Based on the sales projections for 2012 the company plans to sell 4,640 tractors (all numbers are quoted inclusive of tractor components).  

ZETOR TRACTORS a.s. is introducing numerous new products and innovations in 2012, which are expected to significantly improve the use value of Zetor tractors. These innovations include the introduction of an innovative range of Forterra tractors with electrohydraulic reversal (Power Shuttle) and especially the introduction of automatic regulation of the three-point linkage HitchTronic, which will enable automatic regulation during ploughing. Zetor is the first company in the world to introduce this feature, thereby increasing the number of such worldwide firsts in the sector of tractor manufacturing, which have so far included such innovations as the unification of tractor types and regulation power hydraulics under the name Zetormatic.    

Marián Lipovský comments on the automatic regulation of the rear three-point linkage, the HitchTronic, which will make farmers’ work simpler and more effective. “The new functionality of the automatic regulation of the rear three-point linkage, the HitchTronic, means that the tractor can adjust itself to the terrain, thereby making the driver’s work much simpler. It is the perfect solution for skilled tractor drivers and rookies alike,” said Lipovský.  

“The end of the year 2011 and the beginning of the year 2012 will be totally different from last year when our all-factory holiday was slightly longer. This time there will be no such holiday. Thanks to increased demand, especially the contracts for Iraq and other markets, our production capacity is full. The last working day in 2011 will be December 27, after which inventory check processes will be conducted at individual shops. The manufacturing process will be relaunched as early as January 2,” Lipovský added.  

“Our employees have shown a positive attitude towards late December shifts, because they see positive things ahead thanks to the company’s performance. They will spend their days off with their families and loved ones,” says the company’s trade union leader Alois Kazelle.