AGCO reports 10% boost in sales for Q3 of 2021
AGCO, the company behind Massey Ferguson, Fendt and Valtra, has recorded a 10% boost in global sales for the third quarter (Q3) of 2021.
For the three months up to September 30, net sales were approximately $2.7 billion (€2.32 billion), an increase of around 9.1% compared to Q3 of 2020, or 7.5% when “favourable currency translation impacts” are excluded.
Net income for AGCO last quarter was $2.40 (€2.06) per share, or $2.41 per share when restructuring expenses are discounted. These figures compare to $2.09 (€1.80) per share in Q3 last year.
Looking at net sales for the first nine months of the year, to September 30, AGCO recorded sales of around $8 billion (€6.87 billion), a significant increase of around 24.1% compared to the same period in 2020 (19.6% excluding “favourable currency translation impacts”).
The first nine months of the year have seen income of $8.11 (€6.97) per share ($7.30 per share excluding restructuring expenses). Income per share in the first nine months of 2020 was $3.86 (€3.32).
AGCO sales – regional breakdown
Looking at AGCO‘s sales on a regional basis, sales in Europe and the Middle East increased by 4% in Q3 of 2021 to $1.46 billion (€1.25 billion), and by 21.4% in the first nine months, to $4.42 billion (€3.64 billion).
North American sales for the third quarter increased by 9.7% to $638.7 million (€548.7 million) and, in the first nine months, by 17.4% to just under $2 billion (€1.72 billion).
The South American region saw the largest growth in sales, recording a Q3 increase of 39.9% to $383.3 million (€329.3 million) and a year-to-date increase of 48.8% to $902.1 million (€775 million).
In Asia, the Pacific and Africa, sales increased in the third quarter by 2.2% to $240.7 million (€206.8 million), and by a much larger degree in the first nine months of 36.5% to $671.7 million (€577 million).
Commenting on these figures, Eric Hansotia, AGCO’s chairperson, president and chief executive said: “Strong operational execution and robust end-market demand produced higher sales, earnings growth and margin expansion during the third quarter.”
However, he added that the company is facing “unprecedented supply chain and logistics disruptions, as well as materiel and freight cost inflation”.
“Supply chain constraints have intensified in the recent weeks limiting our ability to meet our production and sales projections.”
However, Hansotia added that market conditions are positive, as “favourable farm economics” are allowing farmers to upgrade.
“With order broads significantly ahead of last year, we continue to see a strong response for our technology-focused products,” he added.
Writer: Charles O’Donnel
