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AGCO Reports Fourth 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®, Valtra® and GSI®, and are distributed globally through 3,150 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 2012, AGCO had net sales of $10.0 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)

     

December 31,2012

December 31,2011

ASSETS
Current Assets:
Cash and cash equivalents $ 781.3 $ 724.4
Accounts and notes receivable, net 924.6 970.5
Inventories, net 1,703.1 1,559.6
Deferred tax assets 243.5 142.7
Other current assets   302.2     265.6  
Total current assets 3,954.7 3,662.8
Property, plant and equipment, net 1,406.1 1,222.6
Investment in affiliates 390.3 346.3
Deferred tax assets 40.0 37.6
Other assets 131.2 126.9
Intangible assets, net 607.1 666.5
Goodwill   1,192.4     1,194.5  
Total assets $ 7,721.8   $ 7,257.2  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current portion of long-term debt $ 59.1 $ 60.1
Accounts payable 888.3 937.0
Accrued expenses 1,226.5 1,080.6
Other current liabilities   98.8     127.8  
Total current liabilities 2,272.7 2,205.5
Long-term debt, less current portion 1,227.7 1,409.7
Pensions and postretirement health care benefits 331.6 298.6
Deferred tax liabilities 242.7 192.3
Other noncurrent liabilities   149.1     119.9  
Total liabilities   4,223.8     4,226.0  
 
Temporary Equity 7.3
 
Stockholders’ Equity:
AGCO Corporation stockholders’ equity:
Common stock 1.0 1.0
Additional paid-in capital 1,092.1 1,073.2
Retained earnings 2,843.7 2,321.6
Accumulated other comprehensive loss   (479.4 )   (400.6 )
Total AGCO Corporation stockholders’ equity   3,457.4     2,995.2  
Noncontrolling interests   33.3     36.0  
Total stockholders’ equity   3,490.7     3,031.2  
Total liabilities, temporary equity and stockholders’ equity $ 7,721.8   $ 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 December 31,
  2012       2011  
 
Net sales $ 2,703.4 $ 2,517.8
Cost of goods sold   2,175.6   1,993.7  
Gross profit 527.8 524.1
 
Selling, general and administrative expenses 284.5 246.9
Engineering expenses 89.6 84.0
Impairment charge 22.4
Amortization of intangibles   12.4   7.5  
 
Income from operations 118.9 185.7
 
Interest expense, net 14.1 9.1
Other expense, net   10.5   1.8  
 
Income before income taxes and equity in net earnings of affiliates 94.3 174.8
 
Income tax provision (benefit)   6.9   (98.8 )
 
Income before equity in net earnings of affiliates 87.4 273.6
 
Equity in net earnings of affiliates   13.6   11.7  
 
Net income 101.0 285.3
 
Net loss (income) attributable to noncontrolling interests   1.5   (0.1 )
 
Net income attributable to AGCO Corporation and subsidiaries $ 102.5 $ 285.2  
 
Net income per common share attributable to AGCO Corporation and subsidiaries:
 
Basic $ 1.06 $ 2.94  
Diluted $ 1.04 $ 2.90  
 
Weighted average number of common and common equivalent shares outstanding:
Basic   96.9   97.1  
Diluted   98.5   98.2  
 

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)

 
Years Ended December 31,
  2012       2011  
 
Net sales $ 9,962.2 $ 8,773.2
Cost of goods sold   7,839.0   6,997.1  
Gross profit 2,123.2 1,776.1
 
Selling, general and administrative expenses 1,041.2 869.3
Engineering expenses 317.1 275.6
Restructuring and other infrequent income (0.7 )
Impairment charge 22.4
Amortization of intangibles   49.3   21.6  
 
Income from operations 693.2 610.3
 
Interest expense, net 57.6 30.2
Other expense, net   34.8   19.1  
 
Income before income taxes and equity in net earnings of affiliates 600.8 561.0
 
Income tax provision   137.9   24.6  
 
Income before equity in net earnings of affiliates 462.9 536.4
 
Equity in net earnings of affiliates   53.5   48.9  
 
Net income 516.4 585.3
 
Net loss (income) attributable to noncontrolling interests   5.7   (2.0 )
 
Net income attributable to AGCO Corporation and subsidiaries $ 522.1 $ 583.3  
 
Net income per common share attributable to AGCO Corporation and subsidiaries:
 
Basic $ 5.38 $ 6.10  
Diluted $ 5.30 $ 5.95  
 
Weighted average number of common and common equivalent shares outstanding:
Basic   97.1   95.6  
Diluted   98.6   98.1  
 

See accompanying notes to condensed consolidated financial statements.

 
 

AGCO CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in millions)

 
Years Ended December 31,
  2012         2011  
 
Cash flows from operating activities:
Net income $ 516.4   $ 585.3  
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation 180.6 151.9
Deferred debt issuance cost amortization 3.5 2.9
Impairment charge 22.4
Amortization of intangibles 49.3 21.6
Amortization of debt discount 8.7 8.2
Stock compensation 36.8 24.4
Equity in net earnings of affiliates, net of cash received (25.7 ) (19.0 )
Deferred income tax benefit (36.4 ) (127.6 )
Other 0.6 (1.3 )
Changes in operating assets and liabilities, net of effects from purchase of
businesses:
Accounts and notes receivable, net 40.6 5.4
Inventories, net (160.9 ) (221.0 )
Other current and noncurrent assets (71.8 ) (16.5 )
Accounts payable (61.7 ) 162.3
Accrued expenses 154.5 183.5
Other current and noncurrent liabilities   9.5     (34.2 )
Total adjustments   150.0     140.6  
Net cash provided by operating activities   666.4     725.9  
Cash flows from investing activities:
Purchases of property, plant and equipment (340.5 ) (300.4 )
Proceeds from sale of property, plant and equipment 0.9 1.5
Purchase of businesses, net of cash acquired (2.9 ) (1,018.0 )
Investments in consolidated affiliates, net of cash acquired (20.1 ) (34.8 )
Investments in unconsolidated affiliates, net (15.8 ) (8.3 )
Restricted cash and other   3.7     (3.7 )
Net cash used in investing activities   (374.7 )   (1,363.7 )
Cash flows from financing activities:
Repurchase or conversion of convertible senior subordinated notes (161.0 )
(Repayment of) proceeds from debt obligations, net (222.5 ) 850.5
Payment of debt issuance costs (0.2 ) (14.8 )
Payment of minimum tax withholdings on stock compensation (0.3 ) (2.5 )
Purchases and retirement of common stock (17.6 )
(Distribution to) investments by noncontrolling interests (1.0 ) (1.5 )
Proceeds from issuance of common stock       0.3  
Net cash (used in) provided by financing activities   (241.6 )   671.0  
Effect of exchange rate changes on cash and cash equivalents   6.8     (28.7 )
Increase in cash and cash equivalents 56.9 4.5
Cash and cash equivalents, beginning of year   724.4     719.9  
Cash and cash equivalents, end of year $ 781.3   $ 724.4  
 

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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