AGCO’s 2Q Profit Down

AGCO has reported net sales around $1.8 billion for the second quarter of 2009, a decrease of approximately 25%, when compared to the same period last year. For the first six months of 2009, net sales were $3.4 billion, a decrease of approximately 19.3%, compared to 2008.

“The global recession had a major impact on farmer sentiment in the second quarter of 2009, and with the accompanying constrained credit environment, demand for agricultural equipment softened across the end markets in North America, Europe and South America,” said AGCO’s Chairman, President and CEO Martin Richenhagen.

The company said it made progress during the second quarter with inventory reduction efforts and cost reduction initiatives.