AGCO Cuts Profits Hopes Again, Citing Weak Sales

For a second time, AGCO cut its forecast for full-year earnings, citing “lower sales levels across all regions,” reported Agrimoney.com

AGCO shares tumbled 8% in pre-market deals after the maker of Massey Ferguson and Fendt farm equipment reduced to $4.10-4.30 per share, from $5.00 per share, its forecast for underlying, full-year earnings.

Analysts forecast full-year results to hit $4.84 per share, excluding one-time effects. AGCO’s upgraded guidance, which implies that the group is on course for its worst results in four years, includes an earnings estimate for the July-to-September quarter.

The group attributed its downgrade to “lower sales levels across all regions, lower production and foreign currency translation”, with the rise of the dollar to a four-year high against other currencies such as the euro.

The announcement is the latest in a series of downbeat statements from tractor manufacturers, with Deere in August cutting its profits forecast, and retailer Titan Machinery last month reducing its earnings expectations. S