AGCO Corporation, DULUTH, Ga (US): AGCO, Your Agriculture Company (NYSE: AGCO), reported net sales of approximately $2.4 billion for the second quarter of 2019, a decrease of approximately 4.5% compared to the second quarter of 2018. Reported and adjusted net income was $1.82 per share for the second quarter of 2019.
Second Quarter Highlights: • Reported regional sales results(1): North America 3.1%, Europe/Middle East (“EME”) (5.7)%, South America (15.4)%, Asia/Pacific/Africa (“APA”) (6.7)% • Constant currency regional sales results(1)(2): North America 3.6%, EME 0.2%, South America (9.7)%, APA (0.8)% • Operating margin improvement of over 160 basis points vs. second quarter of 2018 • Regional operating margin performance: North America 8.3%, EME 14.3%, South America (3.8)%, APA 4.3% • Full-year net sales projection decreased to reflect reduced market outlook • Full-year outlook for net income per share increased • Dividend increased approximately 7% to $0.16 per share, effective second quarter 2019 • Repurchases reduced outstanding shares by approximately 0.9 million in the first half of 2019.
“Our second quarter results were highlighted by margin expansion across all regions and significant growth in earnings per share,” stated Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer. “Continued progress on our margin initiatives allowed us to overcome increasingly challenging market conditions in our key markets and improve earnings per share on relatively flat revenues. Increased price realization and initiatives aimed at lowering material costs and raising productivity contributed to the improved profitability in the second quarter. While we have lowered our production schedule to align with market demand, we have raised our earnings outlook for the full year to reflect our confidence in our continued strong margin performance.”
Europe/Middle East net sales increased 5.8% in the first six months of 2019 compared to the same period in 2018, excluding unfavorable currency translation impacts. Sales growth was strongest in France, Central Europe and Germany and was partially offset by weaker sales in Scandinavia. Income from operations improved approximately $29.0 million for the first six months of 2019, compared to the same period in 2018, due to the benefit of higher sales and production, pricing and the timing of engineering costs compared to the prior year.
Global industry demand in 2019 is expected to be consistent with 2018 levels. AGCO’s net sales for 2019 are projected to be flat compared to 2018 at approximately $9.4 billion, reflecting positive pricing, higher sales volumes offset by unfavorable foreign currency translation impacts. Gross and operating margins are expected to improve from 2018 levels, reflecting the positive impact of pricing and cost reduction efforts. Based on these assumptions, 2019 earnings per share are targeted at approximately $5.08 on a reported basis, or approximately $5.10 on an adjusted basis, which excludes restructuring expenses. … read more – agrartechnik-jobs.de, lmv-jobboerse – Manfred Lorenzen-Soest
Quelle: AGCO Corporation