AGCO Reports Third Quarter 2024 Results

AGCO, a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, reported net sales of $2.6 billion for the third quarter ended September 30, 2024, a decrease of 24.8% compared to the third quarter of 2023. Reported net income was $0.40 per share for the third quarter of 2024 and adjusted net income⁽¹⁾ was $0.68 per share. These results compare to reported net income of $3.74 per share and adjusted net income⁽¹⁾ of $3.97 per share, for the third quarter of 2023. Excluding unfavorable foreign currency translation of 0.6%, net sales in the third quarter of 2024 decreased 24.2% compared to the third quarter of 2023.

Net sales for the first nine months of 2024 were approximately $8.8 billion, which is a decrease of 17.3% compared to the same period in 2023. For the first nine months of 2024, reported net loss was $(2.27) per share, which includes the estimated loss on the Grain & Protein business held for sale, and adjusted net income(1) was $5.53 per share. These results compare to reported net income of $11.10 per share and adjusted net income⁽¹⁾ of $11.77 per share for the same period in 2023. Excluding unfavorable foreign currency translation of 0.2%, net sales in the first nine months of 2024 decreased 17.1% compared to the same period in 2023.

J.P. Morgan analyst Tami Zakaria noted that management said the third quarter represented the largest year-over-year production cuts the company ha taken in over a decade by at least 35%. AGCO cut production guidance and sees underproduction likely through at least the first half of 2025, she said writing, "In efforts to manage inventory levels, AGCO cut global production by 35% in 3Q, which was 19% more than it anticipated. Notably, in South America the company cut production levels by >50% YoY in the quarter. Looking ahead, additional cuts are expected in 4Q and in 1H25 as FY production is now guided down ~25% vs. prior down 20-25%."