AGCO Corporation - AGCO STOCK NEWS

TAFE, AGCO 's largest shareholder with a 16.3% stake, has issued critical questions for AGCO's upcoming Analyst Day on December 19, 2024. The questions address concerns about AGCO's underperformance compared to peers, downward guidance revisions, and diminishing competitive position. Key areas of inquiry include AGCO's strategy amid soft agricultural equipment markets heading into 2025, the impact of potential tariffs on Fendt brand, effectiveness of technology investments, and the company's approach to capital allocation. TAFE's concerns stem from AGCO's consistent sales declines across horsepower categories through the first nine months of 2024, particularly in higher horsepower segments.

AGCO (NYSE: AGCO) has named Randy Bauwens of Town & Country Supply Association in Laurel, Montana, as its 2024 Operator of the Year. The award, announced at the ARA Annual Conference & Expo in Houston on December 4, recognizes application professionals for their expertise and service to customers and communities.

Bauwens, who manages 50,000 acres across 12 counties in south central Montana, is known for his meticulous equipment maintenance, attention to detail, and effective communication with colleagues and farmers. His expertise is frequently sought after by customers, and he shares his knowledge through training sessions with other operators.

AGCO announced the retirement of Bob Crain, Senior Vice President and General Manager, Grain & Protein, effective end of December 2024. Crain's nearly 19-year tenure at AGCO included significant contributions such as leading profit and loss management across the Americas, launching the global Customer Experience business area, introducing Net Promoter Score, and implementing the FarmerCore distribution strategy.

Most recently, Crain oversaw a strategic review of the Grain & Protein business, leading to its divestiture to American Industrial Partners in November. His industry leadership includes serving on the Board of the Association of Equipment Manufacturers (AEM) and previously as AEM Board Chair.

AGCO, a leading global agricultural machinery and precision ag technology company, has announced an upcoming analyst meeting scheduled for Thursday, December 19, 2024, in New York City. The event will feature presentations from key executives including Eric Hansotia (Chairman, President and CEO), Damon Audia (SVP and CFO), and Seth Crawford (SVP and General Manager, PTx).

The meeting will run from 9:00 AM to 11:40 AM Eastern Time. Investors can participate either in person or virtually through a webcast available on AGCO's corporate website in the 'Investors' section. The session will be archived for later viewing.

AGCO has inaugurated a new AGCO Technician Training Center at Parkland College in Champaign, Illinois, marking a significant investment in agricultural education. The 22,000 square-foot facility, funded by a $5 million AGCO donation, houses the AGCO Agriculture Service Technician Associate in Applied Science (A.A.S.) degree program.

The center features 18,000 square-feet of shop space with state-of-the-art technology, special tooling, and training aids, alongside access to equipment from Fendt, Massey Ferguson, and PTx brands. The program is registered as an official apprenticeship through the U.S. Department of Labor, combining classroom learning with paid on-the-job training.

This initiative aligns with AGCO's Farmer First strategy and FarmerCore initiative, addressing the critical shortage of skilled technicians in the agricultural industry while supporting economic growth for farmers and their communities.

TAFE, AGCO 's largest shareholder with a 16.3% stake, has submitted a proposal for AGCO's 2025 Annual Meeting to require an independent Board Chair, separating it from the CEO role currently held by Eric Hansotia. TAFE argues that AGCO's combined Chair-CEO structure has led to poor performance, citing five quarters of weak sales, lower margins compared to competitors, and unsuccessful acquisitions including losses of $670.6 million from the Grain & Protein business sale. The proposal aims to enhance Board oversight, increase accountability, and improve strategic decision-making.

AGCO reported Q3 2024 net sales of $2.6 billion, down 24.8% year-over-year, with reported EPS of $0.40 and adjusted EPS of $0.68. The company reaffirmed its full-year adjusted operating margin target of 9% despite market challenges. Regional sales declined across all markets: Europe/Middle East (-18.2%), North America (-21.8%), South America (-47.0%), and Asia/Pacific/Africa (-11.7%). Lower commodity prices and high input costs led to increased conservatism from dealers and farmers, resulting in production cuts. The company completed the divestiture of its Grain & Protein business and introduced OutRun, the first commercially available autonomous retrofit grain cart solution.

American Industrial Partners (AIP) has completed the acquisition of AGCO 's Grain & Protein division, which will now operate as Grain & Protein Technologies. The newly independent company, generating approximately $1 billion in annual revenue, employs over 3,200 people across 14 manufacturing facilities globally. The company serves customers in more than 100 countries through its brands GSI, Cumberland, AP, Tecno, and Cimbria, providing grain storage, seed processing solutions, and protein production systems. Jacob Thomas, former CEO of The Carlstar Group, has been appointed as CEO of the new entity.

AGCO has completed the divestiture of its Grain & Protein business to American Industrial Partners (AIP) for approximately $700 million in an all-cash transaction. This strategic move follows the PTx Trimble joint venture completion in April 2024, focusing AGCO's portfolio on agricultural machinery and precision ag technology. The proceeds will be allocated to debt repayment, technology investment, organic growth initiatives, and shareholder capital returns.