AGCO last week released its earnings report for the quarter ended March 31. The company reported a six-tenths of a percent decline in net sales.
Reflected in that percentage is a six-tenths of a percent decline in net sales in North America, a 9.6 percent decrease in the Asia/Pacific/Africa region, a 13.2 percent increase in net sales in Europe/Middle East, and a 2.6 percent decrease in net sales in South America.
Operating margins improved in all regions exception South America.
“AGCO’s first quarter results demonstrated solid progress towards our margin improvement goals for 2019,” said Chairman, President, and CEO Martin Richenhagen. “Led by our Europe/Middle East region, AGCO’s first quarter 2019 adjusted operating margins improved over 190 basis points compared to the first quarter of 2018. Our margin expansion resulted from organic sales growth, an improved pricing environment and initiatives aimed at lowering material costs and improving productivity. We have raised our outlook for the full year to reflect our confidence in our continued strong performance and in the market recovery.”
The announcement from AGCO said that, in North America, lower sales of tractors and grain and protein production equipment were mostly offset by growth in the sales of application equipment, as well as hay and forage equipment.