AGCO profits 9.6% more with Brazilian impulse
DCI 07/28/10
Agricultural equipment manufacturer AGCO announced yesterday profits of US$ 62.9 million (US$ 0.66 per share) in the second fiscal quarter - value 9.6% above the US$ 57.4 million (US$ 0.61 per share) registered in the same period last year. The result is much better than that foreseen by the company in April, when it estimated earnings between US$ 0.40 and US$ 0.45 per share. The performance of the businesses of the AGCO in South America, especially in Brazil, was decisive for the positive figures of the North-American company in the period. "The leadership position of AGCO in the Brazilian market has allowed us to take advantage of the strong conditions of the local market, where we have doubled our sales and increased the profit margins", said Martin Richenhagen, Chief Executive Officer and President of the company.According to the announcement of the results of the company that owns the Massey Ferguson, Challenger and Valtra brands - the demand continued strong in Brazil and in Argentina during the second quarter of 2010, which resulted in a sales growth of nearly 74.2% in South America compared the second quarter of last year, not considering the foreign currency impacts. On the other hand, the sales fell 16% in Europe, Africa and in the Middle East, and 17% in North America. With the result, AGCO increased the profit growth in 2010 to between US$ 1.85 and US$ 2 per share, compared to something between US$ 1.65 and US$ 1.75 per share, as well as it reiterated the earnings forecast. The quarterly revenue fell 1.4%, amounting to US$ 1.74 billion. Analysts surveyed by Thomson Reuters foresaw US$ 1.68 billion. The gross profit margin increased from 16.5% to 18.4%.