AGCO Reports 4Q Results

AGCO, Duluth, GA, reported net sales of $2.5 billion for the fourth quarter of 2011, an increase of 16.1% compared to net sales of $2.2 billion for the fourth quarter of 2010. Net sales for the full year of 2011 were approximately $8.8 billion, an increase of 27.2% compared to the full year of 2010.

“We finished 2011 on a strong note, setting sales and earnings records for both the fourth quarter and full year,” said Martin Richenhagen, Chairman, President and Chief Executive Officer. “Attractive farm economics supported robust global demand for agricultural equipment and produced sales growth for AGCO of over 27% for 2011 compared to the full year of 2010.”

Record farm income in 2011 supported strong industry retail sales of tractors and combines in North America. Industry unit retail sales of tractors were up modestly, while industry retail sales of combines were down about 4% for the full year of 2011 compared to high levels in 2010. Improvement in the dairy and livestock sector contributed to higher industry unit retail sales of mid-range tractors and hay equipment, both of which increased compared to 2010 levels. The high level of profitability for row crop farmers also produced growth in industry sales of high horsepower tractors and sprayers.

“Robust farm income across all major global agricultural markets is supporting elevated demand for farm equipment,” said Richenhagen. “Despite a modest increase in some global soft commodity inventories at the end of 2011, stock-to-use levels remain at historically low levels. Growing protein and grain consumption is expected to keep pressure on grain supplies and maintain attractive soft commodity prices. Going into 2012, we expect these positive farm fundamentals to support strong demand for farm equipment.”