AGCOs Profit Up With Boost From S. American Market
AGCO Corp.’s second-quarter earnings rose 9.6%, blowing past its own forecasts, as the company a year earlier had restructuring charges and said it benefited from robust performance in South America.
“AGCO’s market leadership position in Brazil allowed us to take advantage of strong market conditions by doubling our sales and expanding our margins in South America,” said Chairman and Chief Executive Martin Richenhagen.
The company, whose brands include Massey Ferguson and Challenger, had seen sales lag in both North America and Europe, which weighed on its bottom line. One bright spot has been South America, where sales of tractors and combines rose.
AGCO posted a profit of $62.9 million, up from $57.4 million a year earlier. Revenue fell 1.4% to $1.74 billion. Analysts polled by Thomson Reuters had most recently forecast $1.68 billion. Gross margin rose to 18.4% from 16.5%. Sales in Europe, Africa and the Middle East, the company’s biggest region for sales, declined 16%. Sales in North America fell 17%, but sales in South America doubled.