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Here is a news story from Reuters about Agco:

UPDATE - Agco quarterly earnings triple, raises forecast
Wednesday July 28, 10:02 am ET
By David Bailey

(Adds stock activity, analyst's remarks, byline)
CHICAGO, July 28 (Reuters) - Tractor maker Agco Corp. (NYSE:AG - News) said on Wednesday that quarterly earnings tripled as company sales benefited from an acquisition and strong retail demand particularly in North America and South America.

Agco, whose shares rose 7 percent, raised its full year earnings forecast, citing sales growth and improved margins with the farm equipment market worldwide on an upswing after several down years.

"(It) was a very solid quarter for the company," Merrill Lynch analyst Andrew Obin said in a note. "South America continued to drive the earnings upside. Agco is benefiting from the improvement in North America, and Europe no longer appears to be an operational drag."

Duluth, Georgia-based Agco said net income rose to $48.3 million, or 54 cents a share, in the second quarter, compared with $15.6 million, or 21 cents per share, a year earlier. Net sales rose 56 percent to $1.41 billion in the quarter.

Profit excluding restructuring costs and other infrequent expenses was $55 million, or 61 cents per share, Agco said. Analysts on average expected Agco to earn 45 cents per share, according to Reuters Estimates.

Sales rose 18 percent excluding acquisition of Valtra's tractor and diesel engine business in January, consolidation of a joint venture and currency translation, Agco said.

Agco said operating income more than tripled in South America to $37.1 million due to the Valtra acquisition, increased sales and stronger margins. Operating income rose 53 percent in the Europe/Africa/Middle East region to $57.5 million mainly on Valtra and currency translation.

Operating income fell $600,000 in North America to $14.5 million because euro strength on products sourced from Europe and higher steel costs offset sales increases, Agco said.

In the Asia/Pacific region, operating income more than doubled to $8.2 million in the quarter, Agco said.

For the rest of 2004, the North America market is expected to remain strong because of high commodity prices and tax incentives, Agco said. Western Europe is expected to improve modestly over 2003, when it was hurt by a drought, while South America is expected to be about the same as 2003.

Agco said it expects adjusted earnings per share to rise by 40 percent to 45 percent over the $1.25 a share reported in 2003, up from a prior forecast for growth of 25 percent to 30 percent. That would translate to earnings per share of about $1.75 to $1.81, while the Reuters Estimates figure is $1.61.

Agco said it expects adjusted earnings per share to increase by 35 percent to 45 percent in the third quarter over the 24 cents from a year earlier. That would translate to adjusted earnings of about 32 cents to 35 cents a share. Analysts on average expect a profit of 35 cents, according to Reuters Estimates.

Net sales are expected to rise by about 45 percent over the $3.5 million in 2003 mainly because of Valtra, improved market conditions and currency translation, Agco said.

Shares of Agco were up $1.29, or 6.95 percent, at $19.86 Wednesday on the New York Stock Exchange.
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