Drought Hits AGCO Fourth Quarter Sales
Posted on February 10, 2006
AGCO Corp. said it suffered a loss in the fourth quarter, hurt by weaker markets in drought-stricken regions of South America. The company reported a fourth-quarter loss of $63.8 million as compared with a net profit of $50.7 million a year earlier. Revenue for the quarter fell 10% on the year to $1.4 billion.
The company said margin pressures from lower production and other factors along with softer market conditions in Western Europe and South America negatively impacted its fourth-quarter operating results.
Chief Executive Officer Martin Richenhagen said a "significant decline in industry demand in South America was the principal cause of our operating income shortfall in 2005." Parts of South America, in particular Brazil, have been affected by drought.