AGCO Sales Up 5.8%, Net Income Up In 4Q

AGCO, reported net sales of approximately $2.2 billion for the fourth quarter of 2010, an increase of 18.7%, compared to the fourth quarter of 2009. Excluding unfavorable currency translation impacts of approximately 4.5%, net sales in the fourth quarter of 2010 increased 23.2%, compared to the same period in 2009.

Net sales for the full year of 2010 were approximately $6.9 billion, an increase of approximately 5.8% compared to the full year of 2009. Excluding the favorable impact of currency translation of approximately 0.3%, net sales for the full year of 2010 increased approximately 5.6% compared to 2009.

“AGCO finished 2010 with a robust fourth quarter performance highlighted by strong sales growth and margin expansion,” said Martin Richenhagen, AGCO’s chairman, president and chief executive officer. “Improving order flow along with increased production levels in our North American and European factories resulted in strong revenue and margin improvement in those regions in the fourth quarter. We are in line with Deere for the U.S. but more conservative for Brazil, which we know pretty well and especially Europe, a very important market for us. Europe is a market which is very difficult to predict. It is very fragmented and it really went down in 2009. We see signs of recovery, we have strong order books, but it is too early to change our guidance.”

AGCO’s North American region reported a sales increase in the fourth quarter of 2010 of approximately 47.3%, compared to the fourth quarter of 2009, excluding favorable currency translation impacts. Increased sales of combines, tractors and sprayers contributed to higher sales in the North American region. ◆