AGCO posts 12.8% 3Q sales jump
Joy Powell | November 9, 2017

 

Despite low market demand, AGCO is reporting net sales of about $2 billion– up by 12.8 percent for the third quarter of 2017 compared to the same period a year ago.

AGCO, which makes and distributes the Massey Ferguson, Challenger, Fendt, Valtra and GSI brands of agricultural equipment, reported net income at 76 cents per share and adjusted net income, excluding restructuring expenses, at 79 cents per share.

That compares to reported net income of 50 cents per share and adjusted net income, excluding restructuring expenses, of 51 cents per share for the third quarter of 2016.

“We produced sales growth and operating margin improvement across all regions while market demand remained at low levels,” says Martin Richenhagen, AGCO’s chairman, president and CEO.

Excluding favorable currency translation impacts of approximately 2.7 percent, net sales in the third quarter of 2017 increased about 10.1 percent compared to the third quarter of 2016, AGCO says.

Net sales for the first nine months of 2017 were about $5.8 billion, climbing 8.7 percent compared to the same period in 2016. Excluding unfavorable currency translation impacts of about one percent, net sales for the first nine months of 2017 rose about 8.8 percent compared to the same period in 2016.

For the first nine months of 2017, reported net income was $1.77 per share and adjusted net income, excluding restructuring expenses and a non-cash expense related to waived stock compensation, was $1.91 per share.

That compares to reported net income of $1.20 per share and adjusted net income, excluding restructuring expenses and a non-cash deferred income tax adjustment, of $1.63 per share for the first nine months of 2016, the company says.

Richenhagen said AGCO continues to focus on long-term and expanding product offerings through internal product development, and he points to recent acquisitions that broaden the company’s portfolio.

“In September, we acquired Precision Planting, a leader in innovative planting technology, and in October, we completed the purchase of the forage division of the Lely Group, which significantly enhances our hay and forage product line in Europe.”

Richenhagen said global crop production is expected to be strong again in 2017.

Regional sales results reported:

  • North America +6.7 percent
  • Europe/Middle East +15percent
  • South America +4.5 percent
  • Asia/Pacific/Africa +29.4 percent

 

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