Net sales at AGCO dipped by about 3 percent in the fourth quarter of 2019. The decline was less than 1 percent when the company adjusted to exclude the impact of unfavorable currency translations.
Net sales for the full year of 2019 decreased by 3.3 percent compared to 2018. Adjusting for the impact of currency translations, net sales saw a gain of eight-tenths of a percent for the year.
Gross margin was 20.4 percent for the fourth quarter and 21.9 percent for the year.
“Global industry retail sales of farm equipment in 2019 were lower across AGCO’s key markets with fourth quarter industry retail sales significantly lower than the prior year in both Europe and South America,” said Martin Richenhagen, AGCO’s chairman, president and chief executive officer.
Net sales in the North American region increased by nine-tenths of a percent for 2019, excluding the negative impact of currency translation. Increased sales of compact tractors, combines and parts were mostly offset by lower sales of protein production equipment and utility tractors.
AGCO anticipates a modest decline in North American tractor sales this year.
The company’s long-term view remains positive, Richenhagan said: “Increasing demand for commodities, driven by the growing world population, rising emerging market protein consumption and biofuel use, are expected to support elevated farm income and healthy conditions in our industry.”
Source: Farm Equipment