AGCO sales up 1.2% in 2020
By Mike Brezonick04 February 2021
AGCO Corp., the Georgia-based global manufacturer and distributor of agricultural equipment and solutions, reported its fourth quarter and final 2020 results, and reflecting the status of the ag industry, the results were positive, unlike so many other machine markets.
The company reported net sales of approximately $2.7 billion for the fourth quarter of 2020, an increase of approximately 8.1% compared to the fourth quarter of 2019. Excluding favorable currency translation impacts of approximately 1.4%, net sales in the fourth quarter of 2020 increased approximately 6.7% compared to the fourth quarter of 2019.
Net sales for the full year of 2020 were approximately $9.1 billion, an increase of approximately 1.2% compared to 2019. Excluding unfavorable currency translation impacts of approximately 1.8%, net sales for the full year of 2020 increased approximately 3% compared to 2019.
Fourth Quarter Highlights
Regional sales results in the fourth quarter saw Europe/Middle East up 13.7%, North America ahead 10.2%, South America rising 21.1% and Asia/Pacific/Africa climbing 2.1%
“The AGCO team delivered strong operational results leveraging improving markets to produce sales and earnings growth in the fourth quarter,” stated Eric Hansotia, AGCO’s chairman, president and CEO. “Our focused execution allowed us to overcome supply chain difficulties and maintain production levels, while reducing company and dealer inventories, which contributed to significant cash flow generation. I would like to thank all our employees for their extraordinary efforts to support our dealers and customers under challenging conditions.
“Our improved results allowed us to maintain our investments in premium technology, sustainable smart farming solutions and enhanced digital capabilities. AGCO’s exceptional product line continues to be well-received by our customers as evidenced by a strong year-end order board. Looking forward to 2021, we are forecasting sales and earnings growth as industry conditions trend positively and we position AGCO for future success.”