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AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, reported net sales of approximately $3.0 billion during the second quarter of 2013, an increase of approximately 13.3% compared to net sales of $2.7 billion for the second quarter of 2012. Net income for the second quarter of 2013 was $2.15 per share. These results compare to net income of $2.08 per share for the second quarter of 2012. Excluding the unfavorable currency translation impact of approximately 0.5%, net sales in the second quarter of 2013 increased approximately 13.8% compared to the second quarter of 2012.
Net sales for the first six months of 2013 were approximately $5.5 billion, an increase of approximately 9.8% compared to the same period in 2012. Excluding the unfavorable impact of currency translation of approximately 1.5%, net sales for the first six months of 2013 increased approximately 11.3% compared to the same period in 2012. For the first six months of 2013, net income was $3.34 per share. This result compares to net income of $3.29 per share for the first six months of 2012.
Second Quarter Highlights
Sales growth was achieved across all regions, with the largest increases in South America and Asia/Pacific. Regional sales results (1): South America +28%; Asia/Pacific (“APAC”) +18%; Europe/Africa/ Middle East (“EAME”) +12%; North America +8%
Operating margins were 10.7% in the second quarter of 2013 vs. 9.8% in the second quarter of 2012. Regional operating margin performance: North America 15.4%, EAME 12.8%, South America 11.1%, APAC (0.7%)
Full year EPS guidance increased to approximately $6.00
(1)Excludes currency translation impact.See reconciliation of Non-GAAP measures in appendix.
“AGCO’s strong performance in the second quarter produced record earnings and operating margins in excess of 10%,” stated Martin Richenhagen, Chairman, President and Chief Executive Officer. “Healthy market demand in North and South America generated growth in both sales and production. Low levels of material cost inflation coupled with our margin improvement initiatives also contributed to our improved results. We are successfully increasing margins through purchasing actions, factory efficiency projects and new product development. Our performance against our working capital targets is on track, and we are positioned for another year of strong cash flow generation.”