NINE MONTHS: AGCO'S SALES UP 17%, NET INCOME UP 32%
Nov. 5, 2018
Source: AGCO news release
To read the entire report click here.
AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment and solutions, reported net sales of approximately $2.2 billion for the third quarter of 2018, an increase of approximately 11.5% compared to the third quarter of 2017. Reported net income was $0.89 per share for the third quarter of 2018, and adjusted net income, excluding restructuring expenses, was $0.91 per share.
These results compare to a reported net income of $0.76 per share and adjusted net income, excluding restructuring expenses, of $0.79 per share for the third quarter of 2017. Excluding unfavorable currency translation impacts of approximately 5.9%, net sales in the third quarter of 2018 increased approximately 17.4% compared to the third quarter of 2017.
Net sales for the first nine months of 2018 were approximately $6.8 billion, an increase of approximately 17.0% compared to the same period in 2017. Excluding favorable currency translation impacts of approximately 1.8%, net sales for the first nine months of 2018 increased approximately 15.1% compared to the same period in 2017.
For the first nine months of 2018, reported net income was $2.33 per share, and adjusted net income, excluding restructuring expenses and costs associated with an early retirement of debt, was $2.58 per share. These results compare to reported net income of $1.77 per share and adjusted net income, excluding restructuring expenses and a non-cash expense related to waived stock compensation, of $1.91 per share for the first nine months of 2017.
Third Quarter Highlights
Reported regional sales results:
*North America +12.8%, Europe/Middle East ("EME") +14.4%, South America +2.8%, Asia/Pacific/Africa ("APA") +5.7%
*Constant currency regional sales results(1)(2): North America +13.8%, EME +16.5%, South America +33.1%, APA +9.9%
*Regional operating margin performance: North America 6.0%, EME 9.3%, South America 4.5%, APA 7.9%
*Share repurchase program reduced outstanding shares by approximately 1.2 million during the first nine months of 2018
"AGCO's solid operational performance across our regional business units and constructive market developments are driving sales and earnings growth," stated Martin Richenhagen, AGCO's Chairman, President and Chief Executive Officer. "We delivered sales and operating income improvement across all regions, with the strongest growth in North and South America.
"Price increases and focused cost control efforts helped to offset most of the trade-related material cost inflation. Equally important, we have delivered operationally while making significant progress on our long-term strategic growth drivers. Our new product launches are resonating with customers, resulting in strong demand across our targeted end-markets."
AGCO's North American net sales increased 22.2% in the first nine months of 2018 compared to the same period of 2017, excluding the positive impact of currency translation. Precision Planting, which was acquired in the fourth quarter of 2017, contributed sales of approximately $97.2 million in the first nine months of 2018. Excluding the impact of acquisitions and currency translation, sales grew approximately 14.2% compared to the first nine months of 2017. The largest increases were in sprayers, high horsepower tractors and hay tools.
Income from operations for the first nine months of 2018 improved approximately $42.5 million compared to the same period in 2017. The benefit of the Precision Planting acquisition and higher sales and production volumes contributed to the increase.