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AGCO reported third-quarter 2024 net sales of $2.6 billion, with a 24.2% year-over-year decline, excluding a 0.6% impact from foreign currency translation.
Date: November 21, 2024
Duluth, Georgia - AGCO Corporation., an agricultural machinery manufacturer, reported third-quarter 2024 net sales of $2.6 billion, down 24.8% from the previous year. Reported net income was $0.40 per share, with adjusted net income at $0.68 per share, compared to $3.74 and $3.97 per share in Q3 2023. Excluding a 0.6% impact from foreign currency translation, net sales decreased 24.2% year-over-year.
Mr. Eric Hansotia, Chairman, President and Chief Executive Officer of AGCO, said, "AGCO continues to implement its Farmer-First strategy, focusing on profitability through high-margin initiatives, portfolio moves, and expense controls, including restructuring. Despite a challenging third-quarter market downturn, AGCO reaffirms its full-year 9% adjusted operating margin outlook. Low commodity prices and high input costs led to reduced production and inventory cuts. AGCO is also advancing its precision ag business, including the PTx Trimble OutRun autonomous grain cart, moving towards full autonomy by 2030. The divestiture of the Grain & Protein business will help AGCO focus on higher-margin products for future growth."
AGCO's net sales for the first nine months of 2024 were approximately $8.8 billion, down 17.3% from 2023. Reported net loss was $(2.27) per share, including a loss on the Grain & Protein divestiture, while adjusted net income was $5.53 per share, compared to $11.10 and $11.77 per share in 2023. Excluding a 0.2% impact from foreign currency, sales declined 17.1% year-over-year.
During the first nine months of 2024, North American tractor sales dropped 11%, with combine sales down 19%. South American sales fell 9%, heavily impacted by floods and a poor harvest in Brazil. Western European tractor sales decreased 6%, with notable declines in Italy, the UK, and France. Lower farm income and refreshed fleets are expected to maintain pressure on industry demand for the rest of 2024.
