AGCO Reports First Quarter Results

About AGCO

AGCO, Your Agriculture Company, (NYSE: AGCO), is a global leader focused on the design, manufacture and distribution of agricultural machinery. AGCO supports more productive farming through a full line of tractors, combines, hay tools, sprayers, forage equipment, tillage, implements, grain storage and protein production systems, as well as related replacement parts. AGCO products are sold through four core machinery brands, Challenger®, Fendt®, Massey Ferguson® and Valtra®, and are distributed globally through 3,100 independent dealers and distributors in more than 140 countries worldwide. Retail financing is available through AGCO Finance for qualified purchasers. Founded in 1990, AGCO is headquartered in Duluth, Georgia, USA. In 2011, AGCO had net sales of $8.8 billion. http://www.agcocorp.com

Please visit our website at www.agcocorp.com

AGCO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in millions)
		March 31, 2012				December 31, 2011
ASSETS
Current Assets:
Cash and cash equivalents		$	426.7			$	724.4
Accounts and notes receivable, net			1,108.0				994.2
Inventories, net			2,024.7				1,559.6
Deferred tax assets			145.8				142.7
Other current assets			276.5				241.9
Total current assets			3,981.7				3,662.8
Property, plant and equipment, net			1,277.8				1,222.6
Investment in affiliates			366.3				346.3
Deferred tax assets			41.1				37.6
Other assets			133.5				126.9
Intangible assets, net			662.6				666.5
Goodwill			1,238.8				1,194.5
Total assets		$	7,701.8			$	7,257.2
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current portion of long-term debt		$	68.4			$	60.1
Convertible senior subordinated notes			185.6				—
Accounts payable			1,062.2				937.0
Accrued expenses			1,019.0				1,080.6
Other current liabilities			137.1				127.8
Total current liabilities			2,472.3				2,205.5
Long-term debt, less current portion			1,331.1				1,409.7
Pensions and postretirement health care benefits			300.7				298.6
Deferred tax liabilities			201.2				192.3
Other noncurrent liabilities			139.7				119.9
Total liabilities			4,445.0				4,226.0
Temporary Equity			31.5				—
Stockholders’ Equity:
AGCO Corporation stockholders’ equity:
Common stock			1.0				1.0
Additional paid-in capital			1,065.7				1,073.2
Retained earnings			2,441.8				2,321.6
Accumulated other comprehensive loss			(321.1	)			(400.6	)
Total AGCO Corporation stockholders’ equity			3,187.4				2,995.2
Noncontrolling interests			37.9				36.0
Total stockholders’ equity			3,225.3				3,031.2
Total liabilities, temporary equity and stockholders’ equity		$	7,701.8			$	7,257.2
See accompanying notes to condensed consolidated financial statements.

AGCO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in millions, except per share data)
		Three Months Ended March 31,
		2012				2011
Net sales		$	2,273.7			$	1,797.7
Cost of goods sold			1,780.7				1,441.8
Gross profit			493.0				355.9
Selling, general and administrative expenses			238.9				184.7
Engineering expenses			72.1				57.9
Restructuring and other infrequent expenses			—				0.2
Amortization of intangibles			12.2				4.4
Income from operations			169.8				108.7
Interest expense, net			13.0				5.5
Other expense, net			4.4				2.3
Income before income taxes and equity in net earnings of affiliates			152.4				100.9
Income tax provision			43.2				30.7
Income before equity in net earnings of affiliates			109.2				70.2
Equity in net earnings of affiliates			12.0				11.4
Net income			121.2				81.6
Net income attributable to noncontrolling interests			(1.0	)			(1.6	)
Net income attributable to AGCO Corporation and subsidiaries		$	120.2			$	80.0
Net income per common share attributable to AGCO Corporation and subsidiaries:
Basic		$	1.24			$	0.85
Diluted		$	1.21			$	0.81
Weighted average number of common and common equivalent shares outstanding:
Basic			97.1				94.1
Diluted			99.1				98.3
See accompanying notes to condensed consolidated financial statements.

AGCO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in millions)
		Three Months Ended March 31,
		2012				2011
Cash flows from operating activities:
Net income		$	121.2			$	81.6
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation			43.4				36.4
Deferred debt issuance cost amortization			0.9				0.4
Amortization of intangibles			12.2				4.4
Amortization of debt discount			2.2				2.0
Stock compensation			8.4				4.7
Equity in net earnings of affiliates, net of cash received			(9.0	)			(7.7	)
Deferred income tax benefit			(1.1	)			(0.6	)
Other			(0.1	)			(1.2	)
Changes in operating assets and liabilities, net of effects from purchase of businesses:
Accounts and notes receivable, net			(98.3	)			(17.5	)
Inventories, net			(421.2	)			(218.2	)
Other current and noncurrent assets			(24.5	)			(28.2	)
Accounts payable			125.3				20.3
Accrued expenses			(59.4	)			(21.0	)
Other current and noncurrent liabilities			19.5				(22.8	)
Total adjustments			(401.7	)			(249.0	)
Net cash used in operating activities			(280.5	)			(167.4	)
Cash flows from investing activities:
Purchases of property, plant and equipment			(87.1	)			(36.8	)
Proceeds from sale of property, plant and equipment			0.1				0.5
Purchase of businesses, net of cash acquired			(2.4	)			(88.3	)
Investments in consolidated affiliates, net of cash acquired			(20.1	)			(25.0	)
Investments in unconsolidated affiliates, net			(2.6	)			(2.4	)
Restricted cash and other			(10.0	)			—
Net cash used in investing activities			(122.1	)			(152.0	)
Cash flows from financing activities:
Conversion of convertible senior subordinated notes			—				(60.4	)
Proceeds from (repayment of) debt obligations, net			93.7				(30.9	)
Payment of debt issuance costs			(0.1	)			—
Payment of minimum tax withholdings on stock compensation			—				(2.0	)
Distribution to noncontrolling interest			(0.2	)			—
Net cash provided by (used in) financing activities			93.4				(93.3	)
Effect of exchange rate changes on cash and cash equivalents			11.5				7.1
Decrease in cash and cash equivalents			(297.7	)			(405.6	)
Cash and cash equivalents, beginning of period			724.4				719.9
Cash and cash equivalents, end of period		$	426.7			$	314.3
See accompanying notes to condensed consolidated financial statements.

AGCO CORPORATION AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(unaudited, in millions, except per share data)

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