Farm equipment manufacturer AGCO saw North American sales pick up in the second quarter, although challenges facing the agriculture industry continue to dampen the company’s outlook.
AGCO attributed higher North American sales to stronger demand for high-horsepower tractors and hay equipment as well as farm technologies, President and Chief Executive Eric Hansotia stated in today’s earnings release.
At the same time, geopolitical uncertainty, volatile input costs, currency fluctuations and elevated operating costs continue to hamper equipment purchases and investment activity, he said.
“With this significant shift and mixed market dynamics, we continue to take decisive actions to align production with retail demand, manage inventory levels across our dealer network and maintain strong discipline around operating expenses and working capital,” Hansotia said.
Duluth, Ga.-based AGCO reported in Q2:
- Total net sales fell 1% year over year to $2.6 billion;
- North American sales increased 19.7% YoY to $471.5 million; and
- Net income fell 75.5% YoY to $77.2 million.
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