AGCO Reports 2Q Results

AGCO Corp., Duluth, GA, said full-year profit will exceed analysts’ estimates as second-quarter earnings more than doubled on demand for tractors and combines in Eastern Europe and Brazil. Sales increased 40% to $2.4 billion. The company projects 2008 sales will grow as much as 28%, or about $8.74 billion, based on last year’s revenue of $6.83 billion.

AGCO raised prices about 1.5% to 2% on tractors and combines during the first half of the year as steel, plastic and tire costs increased. The cost of materials may increase in the third quarter and the company plans to accelerate its price increases by an average of 3% to 3.5%.