Source: AGCO news release
AGCO Reports Third-Quarter Results
*Record third quarter net sales of $3.5 billion
*Third quarter operating margin of 12.3%; year-to-date operating margin over 12%
*Raises full-year operating margin and earnings per share outlook
DULUTH, Ga.-- AGCO, Your Agriculture Company (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, reported its results for the third quarter ended September 30, 2023.
Net sales for the third quarter were approximately $3.5 billion, an increase of 10.7% compared to the third quarter of 2022. Excluding favorable foreign currency translation of 3.5%, net sales in the quarter increased 7.2% compared to the third quarter of 2022.
Reported net income was $3.74 per share for the third quarter of 2023, and adjusted net income(1), which excludes restructuring expenses, transaction-related costs and costs related to a completed divestiture, was $3.97 per share. These results compare to reported net income of $3.18 per share and adjusted net income(1), which excluded restructuring expenses, of $3.18 per share for the third quarter of 2022.
"Robust demand for our technology-rich products, driven by healthy crop production, favorable farm economics and an improving supply chain, generated record third quarter results," stated Eric Hansotia, AGCO's Chairman, President and Chief Executive Officer. "The continued success of our Farmer-First strategy, focused on growing our precision ag business, globalizing a full-line of our Fendt branded products and expanding our parts and service business, is generating strong growth in these margin-rich businesses and helping position AGCO for another record year."
"Furthering our Farmer-First mindset, we recently announced the planned acquisition of Trimble's ag assets and technologies through the formation of a joint venture with Trimble. We believe that this transaction, when combined with our existing solutions, will strengthen our precision ag leadership position and create a global leader in mixed-fleet precision ag.
"This transaction should significantly enhance AGCO's technology stack with disruptive technologies that cover every aspect of the crop cycle, which ultimately helps us better serve farmers no matter what brand they use and accelerates AGCO's strategic transformation," Hansotia added.
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