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AGCO Reports Third Quarter Results

Stocks in this article: AGCO

Losses on sales of receivables associated with the accounts receivable financing facilities discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $5.8 million and $16.4 million during the three and nine months ended September 30, 2012, respectively. Losses on sales of receivables associated with the accounts receivable financing facilities reflected within “Other expense, net” and “Interest expense, net” in the Company’s Condensed Consolidated Statements of Operations were approximately $6.9 million and $15.6 million during the three and nine months ended September 30, 2011, respectively.

The Company’s retail finance joint ventures in Brazil and Australia also provide wholesale financing to the Company’s dealers. As of September 30, 2012 and December 31, 2011, these retail finance joint ventures had approximately $86.3 million and $62.0 million, respectively, of outstanding accounts receivable associated with these arrangements. In addition, the Company sells certain trade receivables under factoring arrangements to other financial institutions around the world.

5. NET INCOME PER SHARE

The Company’s convertible senior subordinated notes provide for (i) the settlement upon conversion in cash up to the principal amount of the converted notes with any excess conversion value settled in shares of the Company’s common stock, and (ii) the conversion rate to be increased under certain circumstances if the notes are converted in connection with certain change of control transactions. Dilution of weighted shares outstanding will depend on the Company’s stock price for the excess conversion value using the treasury stock method. A reconciliation of net income attributable to AGCO Corporation and subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share for the three and nine months ended September 30, 2012 and 2011 is as follows:

   

 

Three Months Ended September 30,

   

 

Nine Months Ended September 30,

2012     2011 2012     2011
 
Basic net income per share:

Net income attributable to AGCO Corporation and subsidiaries

$ 94.5 $ 84.4 $ 419.6 $ 298.1

Weighted average number of common shares outstanding

 

97.0

 

96.4

 

97.1

 

95.1

 

Basic net income per share attributable to AGCO Corporation and subsidiaries

$ 0.97 $ 0.88 $ 4.32 $ 3.13
 
Diluted net income per share:

Net income attributable to AGCO Corporation and subsidiaries for purposes of computing diluted net income per share

$ 94.5 $ 84.4 $ 419.6 $ 298.1
 
Weighted average number of common shares outstanding

97.0

96.4

97.1

95.1

Dilutive stock options, SSARs, performance share awards and restricted stock awards

1.0

0.2

1.0

0.3

Weighted average assumed conversion of contingently convertible senior subordinated notes

 

 

0.4

 

 

0.3

 

 

0.5

 

 

2.5

Weighted average number of common and common equivalent shares outstanding for purposes of computing diluted net income per share

 

 

 

 

98.4

 

 

 

 

96.9

 

 

 

 

98.6

 

 

 

 

97.9

 

Diluted net income per share attributable to AGCO Corporation and subsidiaries

$ 0.96 $ 0.87 $ 4.25 $ 3.04

6. SEGMENT REPORTING

Effective January 1, 2012, the Company modified its system of reporting, resulting from changes to its internal management and organizational structure, which changed its reportable segments from North America; South America; Europe/Africa/Middle East; and Rest of World, to North America; South America; Europe/Africa/Middle East; and Asia/Pacific. The Asia/Pacific reportable segment includes the regions of Asia, Australia and New Zealand, and the Europe/Africa/Middle East segment will now include certain markets in Eastern Europe. Effective January 1, 2012, these reportable segments are reflective of how the Company’s chief operating decision maker reviews operating results for the purposes of allocating resources and assessing performance. Disclosures for the three and nine months ended September 30, 2011 have been adjusted to reflect the change in reportable segments.

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