Kubota Reports In-Line 2019 Results; Largely Flat 2020 Guidance Below Our Expectations; FVE Lowered

Kubota is one of the largest agricultural machinery manufacturers in the world; it focuses on tractors and rice farming equipment. While competitors such as John Deere and CNH focus more on large farm machinery, Kubota has been emphasizing machinery below 100 horsepower, a strategy that has turned out to be successful. Through the years, it has managed to build a strong brand name and achieve significant (if not leading) market shares in North America and Asia for its compact tractors, combine harvesters, and rice transplanting machinery.