AGCO Released Its First Quarter Results

May 02, 2019

AGCO, a worldwide manufacturer and distributor of agricultural equipment and solutions, reported net sales of approximately $2.0 billion for the first quarter of 2019, a decrease of approximately 0.6% compared to the first quarter of 2018. Reported net income was $0.84 per share for the first quarter of 2019, and adjusted net income, excluding restructuring expenses, was $0.86 per share. These results compare to a reported net income of $0.30 per share and adjusted net income, excluding restructuring expenses, of $0.35 per share for the first quarter of 2018. Excluding unfavorable currency translation impacts of approximately 7.1%, net sales in the first quarter of 2019 increased approximately 6.5% compared to the first quarter of 2018.

First Quarter Highlights

Reported regional sales results(1): North America (1.3)%, Europe/Middle East (“EME”) +4.0%, South America (14.3)%, Asia/Pacific/Africa (“APA”) (16.3)%
Constant currency regional sales results(1)(2): North America (0.6)%, EME +13.2%, South America (2.6%), APA (9.6)%
Operating margin improvement of 190 basis points vs. first quarter of 2018
Regional operating margin performance: North America 6.2%, EME 10.5%, South America (5.4)%, APA 2.6%
Share repurchase program reduced outstanding shares by approximately 0.4 million during the first three months of 2019
Increased full-year outlook for net income per share

(1)As compared to first quarter 2018

(2)Excludes currency translation impact. See reconciliation in appendix.

Source : Agco News Releases

Video: Is China Buying US Soybeans + USDA Nov 14th Crop Report could be “Game Changing”

After a week of a U.S./China trade truce, markets/trade is skeptical that we have not seen a signed agreement nor heard much from China or seen any details. There are rumors that China is buying soybean futures & not the physical. Trust in Trump?
12 MMT of U.S. soybean purchases by China by year-end is better than 0 but we all need to give it more time and give it a chance to unfold. China did lower the tariffs on Ag and is buying U.S. wheat and sorghum.
U.S. supreme court could rule against Trumps tariffs, but the Trump administration does have a plan B.
U.S. government shutdown is now the longest in history at 38 days.
But despite a U.S. government shutdown we will be getting a USDA November crop report next Friday and it could be “game changing.” If the USDA provides a bullish surprise with lower U.S. corn and soybean yields and ending stocks that are lower than expected both corn and soybean futures will break out above their ceilings at $4.35/bu and $11.35/bu respectively.
The funds continued their selling in live and feeder cattle futures on continued fears that the Trump administration want to lower U.S. beef prices. The fundamentals have not changed, only market psychology has.
Stocks markets continue to worry about a weak U.S. job market, but you can blame ChatGPT for that. In the future, we will have a more efficient, productive and growing economy with a higher unemployment rate until we have more skilled AI workers.
After 34 new record highs in the S & P 500 and 124 new records in the NASDAQ in 2025 we are back to a correction and investor profit taking as AI valuations may have gotten too stretched near-term ahead of NVDA’s 3rd quarter earnings announcement on Nov. 19th. But this is not an AI bubble.
75% of Tesla shareholders approved a $1 trillion pay package for Elon Musk!
It has rained in South America in the last 7 days, but both the American and European models agree that Central Brazil remains dry in the next 14-days!

China suspends some Canadian pork imports

Raising money for the Canadian Tractor Museum