AGCO releases first quarter results

Apr 28, 2016

Net sales down in first quarter

By Diego Flammini
Assistant Editor, North American Content
Farms.com

AGCO released its first quarter results for 2016 and the company reported a slight decline in net sales.

Net sales were estimated at $1.6 billion for the first quarter of 2016, down about 8.4 per cent when compared to the $1.7 billion in net sales reported in the first quarter of 2015.

“AGCO’s first quarter results reflect the cyclicality and seasonality of our industry,” said Chairman Martin Richenhagen in a release. “As anticipated, global market conditions continued to weaken, impacting our revenue and margin performance.”

When looking specifically at North America, the continent accounted for $408.4 million in net sales by the end of March 2016, compared to $472.5 million at the same time in 2015.

First quarter

“Dealer inventory reduction efforts and softer industry demands, particularly from the row crop sector, contributed to lower sales,” the company said.

Despite the first quarter results, AGCO is optimistic that farmers and commodity markets will rebound.

“We remain confident in the long term fundamentals supporting commodity prices and farm income as well as healthy growth in our industry,” Richenhagen said.

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