Bourgault Industries Ltd. Issues Additional Layoff Notices

Most regrettably, because of continued deterioration in market conditions in the grain production sector, Bourgault Industries Ltd. has issued layoff notices to approximately 9% of its total workforce. This includes suspending the manufacturing portion of its division in Minot, North Dakota, which was more heavily impacted by duties. The company is experiencing reduced demand for its products due to a number of factors which include:

• Continued drought conditions over the south western half of Western Canada, the Northern US Plains, Australia and parts of Eastern Europe;
• Higher fertilizer and input prices for our farmers;
• Massive steel price increases and price increases in component parts due to tariffs and duties have made farm equipment more expensive;
• Lentil prices are low because of the 25% tariffs that have been imposed by India;
• Canola prices have continued to soften due to poor trade relations between Canada and China;
• Soil moisture conditions in the southwestern Prairies and the upper Northern US Plains improved last fall and there is snow cover over the fields but large areas are still experiencing low soil moisture setting up expectations of a below average crop.

These layoff notices will take effect in approximately 4 weeks unless market conditions improve substantially in the interim. Upon the return of more normal market conditions, Bourgault Industries Ltd. would expect to return to higher production levels shortly after normalization occurs.

Please note that no media interviews, to discuss the events of the layoffs, will be provided by any Bourgault Industries Ltd. management or staff.