AGCO Reports Record 2Q Results

AGCO reported net sales of $2.4 billion for the second quarter of 2011, an increase of 35.3%, compared to net sales of $1.7 billion for the second quarter of 2010. Excluding favorable currency translation impacts of 12.9%, net sales in the second quarter of 2011 increased 22.4%, compared to the same period in 2010. Net sales for the first six months of 2011 were $4.2 billion, an increase of approximately 35.3%, compared to the same period in 2010.

Excluding the favorable impact of currency translation of approximately 8.8%, net sales for the first six months of 2011 increased approximately 26.6% compared to the same period in 2010. AGCO’s North American sales increased approximately 13.8% in the first six months of 2011 compared to the first six months of 2010. The most significant increases were in combines, implements and high horsepower tractors. Higher sales, the benefit of increased production, and cost control initiatives all contributed to growth in income from operations of $30 million during the first half of 2011 compared to the same period in 2010.

The company said it will also invest $300 million to $350 million over several years to design and manufacture tractors, and possibly diesel engines, in China. ◆