Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  AGCO Corporation    AGCO

AGCO CORPORATION (AGCO)
Mes dernières consult.
Most popular
Report
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

AGCO Corporation : UPDATE : Agco 4Q Profit More Than Triples; S America Outlook Cut

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/07/2012 | 05:53pm CET

--Agco reiterates 2012 guidance for EPS of about $5

--Company lowers 2012 outlook for South America

--Agco sees 2012 sales of GSI Holdings above $750 million

(Adds comments from conference call, details throughout about market outlooks and regional sales.)

 
   By Bob Tita 
   Of  
 

Agco Corp.'s (>> AGCO Corporation) fourth-quarter earnings more than tripled, but the farm-machinery manufacturer lower its industry outlook for South America where Agco is the sales leader in farm tractors.

Agco, the world's third-largest manufacturer of farm equipment by sales, topped analysts' expectations for the fourth quarter, as results were helped by a tax gain, expanded margins and rising sales. The company also reiterated its 2012 guidance from December, but tweaked its forecast for tractor sales in South America.

Agco, whose brands include Massey Ferguson, Valtra and Challenger, said it now expects industry-wide sales in South America this year to be flat to down 5% from 2011, compared with Agco's December forecast of flat sales. Last week, competitor CNH Global N.V. (CNH) predicted South American machinery sales this year will fall by 5% to 10%.

"We're about expecting the market to be a little lower because of the dry weather" conditions, said Agco Chief Financial Officer Andy Beck during a conference call Tuesday with analysts.

Agco said industry-wide sales of tractors in South America last year dropped 3% from 2010 as weaker sales in Brazil and Argentina were offset partially by higher demand from other countries in the region. Agco has been facing tougher competition in Brazil--South America's largest farm-machinery market--from Deere & Co. (>> Deere & Company). Agco's share of the Brazilian tractor market was about 50% in 2011, down from 60% a couple of years ago, according to industry estimates.

Last month, Agco disclosed the purchase of a 60% stake in a Brazilian company that makes mechanized sugar-cane harvesters. Sales of sugar-cane harvesters are expected to surge in the coming years, as the Brazilian government tries to eliminate the practice of burning fields to make the cane easier to cut by hand. Agco executives said they believe the purchase of Santal Equipamentos will help Agco to combat market-share erosion in Brazil.

"It allows us to have a fuller offering of equipment for those sugar-cane customers," Beck said.

Elsewhere in the world, Agco said it sees industry-wide sales of tractors in North America being flat to up 5% in 2012, while sales in western Europe are expected to be flat with 2011. Agco said North American tractor sales last year rose 2% over 2010, while sales in western Europe increased 12%.

High prices for farm commodities have been driving expanded sales for tractors and harvesting combines, blunting the effects of sluggish economic growth last year in North America and Europe.

"Farm income has been extremely strong," said Chairman and Chief Executive Martin Richenhagen.

Agco, which is based in Georgia, bought grain-storage bin manufacturer GSI Holdings Corp. last autumn in bid to boost Agco's revenue and expand its penetration in the North American market, the company's weakest geographic market. Agco said it anticipates GSI's sales this year to exceed $750 million, up from about $700 million in 2011.

The company forecast that its overall sales would exceed $10 billion in 2012, a 14% increase from 2011. The company affirmed its earlier earnings estimate of about $5 a share.

For the quarter ended Dec. 31, Agco reported a profit of $285.2 million, or $2.90 a share, up from $85.2 million, or 87 cents a share, a year earlier.

Excluding a tax gain and acquisition expenses for GSI, earnings rose to $1.44 a share from 88 cents a year earlier. Revenue increased 16% to $2.52 billion. Analysts polled by Thomson Reuters projected earnings of $1.33 a share on revenue of $2.54 billion.

Agco's operating margin in fourth quarter improved to 7.6% from 7% a year earlier. Fourth-quarter sales in North America grew 30% from a year earlier, excluding unfavorable currency movements. The improvement stemmed from rising sales of newly launched models of high-horsepower tractors for large farms. In Europe, Africa and the Middle East segment, Agco's largest revenue contributor, sales rose 15%, while sales in South America expanded by 8%.

Agco's stock was recently down 4.2% at $51.46 a share.

-By Bob Tita, Dow Jones Newswires; 312-750-4129; [email protected]

--Tess Stynes and Lauren Pollock contributed to this article.

Stocks mentioned in the article : AGCO Corporation, Deere & Company
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AGCO CORPORATION
12/14 AGCO : expands used equipment risk management offering
12/11 AGCO : Pre-Market Technical Scan on Farm & Construction Machinery Equities -- De..
12/07 AGCO CORPORATION : Free Post Earnings Research Report: AGCO’s Revenue Grew 12.8%..
12/07 AGCO : New sprayer hits its target
12/04 AGCO : to Host Analyst Meeting
12/04 Farm equipment maker AGI plans aggressive Brazil acquisitions
11/22 AGCO : Ag manufacturer receives AME Excellence Award
11/20 AGCO : ’s Innovation Rewarded with Prestigious Awards at Agritechnica 2017
11/17 AGCO CORP /DE : Regulation FD Disclosure (form 8-K)
11/16 AGCO CORPORATION : Featured Company News - AGCO Backs Out of Plan to Buy Kepler ..
More news
News from SeekingAlpha
12/09 Goldman unveils sector-by-sector view for 2018 stock winners
12/05 Tweedy, Browne Fund 2017 Semi-Annual Letter
12/01 Cummins upgraded, AGCO downgraded at Goldman in move to ag sector
11/22 Deere +4% following solid guidance
11/20 Tracking Tweedy Browne Portfolio - Q3 2017 Update
Financials ($)
Sales 2017 8 152 M
EBIT 2017 416 M
Net income 2017 231 M
Debt 2017 1 325 M
Yield 2017 0,79%
P/E ratio 2017 24,97
P/E ratio 2018 19,11
EV / Sales 2017 0,86x
EV / Sales 2018 0,81x
Capitalization 5 726 M
Chart AGCO CORPORATION
Duration : Period :
AGCO Corporation Technical Analysis Chart | AGCO | US0010841023 | 4-Traders
Technical analysis trends AGCO CORPORATION
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 19
Average target price 72,9 $
Spread / Average Target 1,3%
EPS Revisions
Managers
NameTitle
Martin H. Richenhagen Chairman, President & Chief Executive Officer
Andrew H. Beck Chief Financial Officer & Senior Vice President
Helmut R. Endres Senior Vice President-Engineering
P. George Benson Independent Director
Hendrikus Visser Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
AGCO CORPORATION24.04%5 726
KOMATSU LTD45.00%33 487
PACCAR12.63%24 648
KUBOTA CORP25.90%23 066
CNH INDUSTRIAL33.70%17 876
KION GROUP26.28%9 829