AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, reported net sales of approximately $2.5 billion during the third quarter of 2013, an increase of approximately 7.9% compared to net sales of $2.3 billion for the third quarter of 2012. Net income for the third quarter of 2013 was $1.27 per share. These results compare to net income of $0.96 per share for the third quarter of 2012. Excluding the unfavorable currency translation impact of approximately 1.8%, net sales in the third quarter of 2013 increased approximately 9.7% compared to the third quarter of 2012.
Net sales for the first nine months of 2013 were approximately $7.9 billion, an increase of approximately 9.2% compared to the same period in 2012. For the first nine months of 2013, net income was $4.61 per share. This result compares to net income of $4.25 per share for the first nine months of 2012. Excluding the unfavorable impact of currency translation of approximately 1.6%, net sales for the first nine months of 2013 increased approximately 10.8% compared to the same period in 2012.
Third Quarter Highlights
- Strong sales growth in South America and Asia/Pacific. Regional sales results (1) : South America +35%; Asia/Pacific (“APAC”) +11%; North America +9%; Europe/Africa/ Middle East (“EAME”) (2)%;
- Operating margins reached 8.0% in the third quarter of 2013, a 190 basis point improvement vs the third quarter of 2012. Regional operating margin performance: North America 11.4%, EAME 9.1%, South America 12.6%, APAC (2.0)%
- Full-year Earning Per Share guidance remains at approximately $6.00 per share
- Launched new Global Precision Farming Initiative: Fuse™ Technologies (announced in July, http://www.agcocorp.com/news/media_press_releases.aspx)
- Announced joint venture with Russian Machines to manufacture and distribute agricultural equipment and replacement parts in Russia (announced in September, http://www.agcocorp.com/news/media_press_releases.aspx)
(1) Excludes currency translation impact. See reconciliation of Non-GAAP measures in appendix.“Attractive farm economics are supporting global demand for agricultural equipment, and our third quarter sales reflected this,” stated Martin Richenhagen, Chairman, President and Chief Executive Officer. “AGCO’s focused execution in the third quarter produced improved operating margins and record earnings. Increased sales and production levels, modest material cost inflation and our cost control initiatives all contributed to AGCO’s improved results. Our profitability and our cash flow are growing while we are aggressively investing in advanced technology and emerging markets. In the third quarter, our strategic investments included the launch of Fuse™ Technologies and our new joint venture with Russian Machines.”