AGCO: 2009 Sales Will Be Flat Or Down By 5%

AGCO Corp’s chief executive said 2009 sales will be flat to down 5% as weakness in Brazil offsets flat demand for farm equipment in North America and Europe, Reuters reports.

The Brazilian market for farm equipment will be down between 15% and 20% this year, AGCO CEO Martin Richenhagen said. The company derives about 20% of its sales from Brazil. In North America and Europe, Richenhagen said demand would be “stable,” as lower fuel and fertilizer costs allow farmers to invest in new equipment in spite of falling commodity prices.

AGCO has about $600 million in cash, which it could use to make small acquisitions this year, Richenhagen said, possibly in Russia and China.