Net sales at AGCO increased by 16.1 percent in the fourth quarter of 2021. For the year, net sales climbed by 21.7 percent. And, in North America in 2021, net sales increased 20.8 percent.
Increased sales of high horsepower and mid-range tractors as well as precision planting products represented the largest increases. The company also saw an improvement in its income from operations resulting from higher sales and production, a richer mix of products and favorable price realization, all which offset higher material costs.
“AGCO delivered record results in 2021 highlighted by significantly higher sales and margins compared to 2020,” said Chairman, President, and CEO Eric Hansotia. “Our performance was fueled by improved global industry demand and focused execution by the AGCO team, who exceeded sales targets despite considerable supply chain challenges.”
He said adjusted operating margins were 9.1 percent of net sales, which was a benefit of sales growth and pricing that helped offset inflation.
“Looking forward to 2022, we expect supply chain pressures to persist, presenting challenges throughout the year,” Hansotia said. “Our teams are working tirelessly with our suppliers to mitigate the impact of these issues to serve our customers as well as to deliver another strong year of performance.”
AGCO forecasts continued sales growth in 2022.