Agco 1Q Earnings Fall On Weaker Demand

DULUTH, Ga. (AP) — Farm equipment manufacturer Agco Corp. said Tuesday its first-quarter earnings fell more than 42 percent on weakening demand due to global economic turmoil.

Agco reported earnings of $33.7 million, or 36 cents a share, compared with $58.8 million, or 59 cents a share, for the same period a year ago. Revenue was down 11.6 percent to $1.6 billion, compared with $1.8 billion for the same period in 2008.

The per-share results beat expectations. Analysts surveyed by Thomson Financial expected on average earnings of 23 cents a share on revenue of $1.6 billion.

But Agco warned that its earnings for the current quarter would be "significantly lower" than the year-ago period and cut its full-year 2009 outlook. Its shares fell 36 cents, or 1.5 percent, to $23.89 in afternoon trading.

The company said businesses are having a difficult time securing financing for its equipment due to constrained credit markets around the world. Tighter credit affected sales in Eastern Europe, Russia and South America. Dry weather conditions in South America also negatively affected sales.