This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

AGCO Reports Fourth Quarter Results

Stocks in this article: AGCO

The following is a reconciliation of adjusted income from operations, net income and net income per share to reported income from operations, net income and net income per share for the three months ended December 31, 2012 and 2011 (in millions, except per share data):

  Three months ended December 31,
2012         2011  
                       

IncomeFromOperations

NetIncome (1)

NetIncomePerShare (1)

IncomeFromOperations

NetIncome (1)

NetIncomePerShare (1)

 
As adjusted $ 141.3 $ 98.0 $ 0.99 $ 191.5 $ 141.7 $ 1.44
Tax adjustments (2) (26.9 ) (0.27 )
Impairment charge (3) 22.4 22.4 0.22
GSI acquisition (4)             5.8   (143.5 )   (1.46 )
 
As reported $ 118.9 $ 102.5   $ 1.04   $ 185.7 $ 285.2   $ 2.90  
 

(1) Net income and net income per share amounts are after tax.

(2)During the fourth quarter of 2012, the Company recorded a non-cash tax gain associated with the recognition of certain U.S. deferred tax assets from the reversal of its U.S. deferred tax valuation allowance and the recognition of certain U.S. research and development tax credits.

 
 

(3) In accordance with ASC 350, “Intangibles - Goodwill and Other,” the Company conducted an impairment analysis of its Chinese harvesting business during the fourth quarter of 2012. As a result of its analysis, the Company concluded that the goodwill and certain other intangible assets were impaired and recorded an impairment charge of $22.4 million.

 
 
 

(4) During the fourth quarter of 2011, the Company recorded a tax gain of $149.3 million and acquisition expenses of $5.8 million associated with the GSI acquisition.

 
 

The following is a reconciliation of adjusted income from operations, net income and net income per share to reported income from operations, net income and net income per share for the years ended December 31, 2012 and 2011 (in millions, except per share data):

  Years ended December 31,
2012         2011  
                       

IncomeFromOperations

NetIncome (1)

NetIncomePerShare (1)

IncomeFromOperations

NetIncome (1)

NetIncomePerShare (1)

 
As adjusted $ 715.6 $ 517.6 $ 5.25 $ 615.4 $ 439.3 $ 4.48
Tax adjustments (2) (26.9 ) (0.27 )
Impairment charge (3) 22.4 22.4 0.22
Restructuring and other infrequent income (4)

(0.7

)

(0.5

)

GSI acquisition (5)             5.8     (143.5 )   (1.47 )
 
As reported $ 693.2 $ 522.1   $ 5.30   $ 610.3   $ 583.3   $ 5.95  
 

(1) Net income and net income per share amounts are after tax.

(2) During the fourth quarter of 2012, the Company recorded a non-cash tax gain associated with the recognition of certain U.S. deferred tax assets from the reversal of its U.S. deferred tax valuation allowance and the recognition of certain U.S. research and development tax credits.

 
 

(3) In accordance with ASC 350, “Intangibles - Goodwill and Other,” the Company conducted an impairment analysis of its Chinese harvesting business during the fourth quarter of 2012. As a result of its analysis, the Company concluded that the goodwill and certain other intangible assets were impaired and recorded an impairment charge of $22.4 million.

 
 
 

(4) The restructuring and other infrequent income recorded during 2011 related primarily to a reversal of approximately $0.9 million of previously accrued legally required severance payments associated with the rationalization of the Company’s French operations.

 
 

(5) During the fourth quarter of 2011, the Company recorded a tax gain of $149.3 million and acquisition expenses of $5.8 million associated with the GSI acquisition.

 
 
 

This earnings release discloses the percentage change in regional net sales due to the impact of currency translation. The following table sets forth, for the three months and year ended December 31, 2012, the impact to net sales of currency translation by geographical segment (in millions, except percentages):

 

Three Months EndedDecember 31,

       

Change due to currencytranslation

 

2012

       

2011

   

% changefrom 2011

 

$

       

%

 
 
North America $ 652.3 $ 598.7 9.0 % $ 3.5 0.6 %
South America 511.9 448.5 14.1 % (71.1 ) (15.9 )%
Europe/Africa/Middle East 1,406.5 1,381.6 1.8 % (32.2 ) (2.3 )%
Asia/Pacific   132.7   89.0 49.1 %   (0.3 ) (0.3 )%
 
$ 2,703.4 $ 2,517.8 7.4 % $ (100.1 ) (4.0 )%
 

 

Years Ended

December 31,

 

Change due to currencytranslation

 

2012

 

2011

% changefrom 2011

 

$

 

%

 
 
North America $ 2,584.4 $ 1,770.6 46.0 % $ (11.6 ) (0.7 )%
South America 1,855.7 1,871.5 (0.8 )% (295.5 ) (15.8 )%
Europe/Africa/Middle East 5,073.7 4,847.2 4.7 % (357.7 ) (7.4 )%
Asia/Pacific   448.4   283.9 57.9 %   (7.9 ) (2.8 )%
 
$ 9,962.2 $ 8,773.2 13.6 % $ (672.7 ) (7.7 )%
 
 

This earnings release discloses the percentage change in regional net sales due to the impact of acquisitions. The following table sets forth, for the three months and year ended December 31, 2012, the impact to net sales of acquisitions by geographical segment (in millions, except percentages):

 

Three Months EndedDecember 31,

       

Change due to acquisitions

 

2012

       

2011

   

% changefrom 2011

 

$

     

%

 
 
North America $ 652.3 $ 598.7 9.0 % $ 61.1 10.2 %
South America 511.9 448.5 14.1 % 9.8 2.2 %
Europe/Africa/Middle East 1,406.5 1,381.6 1.8 % 10.5 0.8 %
Asia/Pacific   132.7   89.0 49.1 %   19.5 21.9 %
 
$ 2,703.4 $ 2,517.8 7.4 % $ 100.9 4.0 %
 
 

Years EndedDecember 31,

Change due to acquisitions

 

2012

 

2011

% changefrom 2011

 

$

%

 
 
North America $ 2,584.4 $ 1,770.6 46.0 % $ 475.7 26.9 %
South America 1,855.7 1,871.5 (0.8 )% 87.5 4.7 %
Europe/Africa/Middle East 5,073.7 4,847.2 4.7 % 104.7 2.2 %
Asia/Pacific   448.4   283.9 57.9 %   106.4 37.5 %
 
$ 9,962.2 $ 8,773.2 13.6 % $ 774.3 8.8 %
 
 

The following is a reconciliation of free cash flow to net cash provided by operating activities for the years ended December 31, 2012 and 2011 (in millions):

        2012           2011  
 
Net cash provided by operating activities $ 666.4 $ 725.9
Less:
Capital expenditures   (340.5 )   (300.4 )
Free cash flow $ 325.9   $ 425.5  




11 of 12

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,368.62 -11.79 -0.07%
S&P 500 1,898.40 +11.64 0.62%
NASDAQ 4,299.3690 +40.9310 0.96%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs