AGCO North American sales rise 34.8% in Q3
Total net sales dropped 8.6% YoY
Farm equipment manufacturer AGCO saw North American sales climb in the third quarter as weaker agricultural equipment demand weighed on global results.
Higher unit sales, particularly high-horsepower and midrange tractors and parts, supported North American growth, according to the company’s third-quarter earnings release published Oct. 29.
Lower farm income and uncertainty across agricultural markets continued to weigh on farmer sentiment, Chairman, President and Chief Executive Eric Hansotia stated in the release. AGCO adjusted production to match demand while managing dealer inventories and controlling costs.
North American dealer inventories remained just below seven months of supply, above the company’s six-month target, Hansotia said during today’s earnings call. Global production hours declined approximately 19% year over year as AGCO adjusted output to weaker demand, he said during the call.
By the numbers
Duluth, Ga.-based AGCO also reported:
- Total net sales fell 8.6% YoY to $2.3 billion;
- North American sales increased 34.8% YoY to $485.3 million;
- North American operating income reached $13.8 million, compared with a $42 million loss a year earlier, aided by approximately $13 million in tariff refunds;
- Europe/Middle East sales declined 19.1% YoY to $1.3 billion; and
- Latin American sales fell 15.4% YoY to $292.3 million.
Shares of AGCO [NYSE: AGCO] were up 5.6% or $5.67 to $107.84 as of market close on Oct. 29. The company has a market capitalization of $7.55 billion.
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