AGCO REPORTS FIRST-QUARTER RESULTS
AGCO reported net sales of $2.9 billion for Q1 2024, a 12.1% decrease from Q1 2023, with earnings per share at $2.25 and adjusted earnings per share at $2.32. The company completed a joint venture transaction, PTx Trimble, and announced a special dividend of $2.50 per share. Despite global agricultural equipment demand decline, AGCO remains focused on cost management, shareholder rewards, and strategic initiatives.
Completion of PTx Trimble JV to enhance precision ag business.
New brand, PTx, combines technologies for future ag developments.
Focus on precision ag, full-line Fendt products, and service business expansion.
Increased operating margins in EME region and positive net pricing.
Decrease in net sales across regions, notably in South America and Asia.
Significant decline in industry retail tractor sales in North America, South America, and Western Europe.
Lower sales volumes and under-production impacting income in South America.
Negative impact on demand due to weak farm economics and lower commodity prices.
- Net sales of
$2.9 billion 12.1% - Reported earnings per share of
$2.25 $2.32 - Closed the previously announced joint venture transaction, PTx Trimble, on April 1
- Announced variable special dividend of
$2.50
"AGCO demonstrated strong execution of its Farmer First-strategy in the first quarter," said Eric Hansotia, AGCO's Chairman, President and Chief Executive Officer. "Our results reflect the declining global demand for the agricultural equipment industry, and as anticipated, correspondingly significant production cuts that still led to solid results. The reductions were aimed at helping reduce dealer inventories. While cost and working capital management remain a priority to mitigate market pressures, we continue to reward shareholders through dividends and investing in our three margin-rich initiatives: growing our precision ag business, globalizing a full-line of our Fendt branded products and expanding our parts and service business."
"We successfully completed the PTx Trimble joint venture ("JV") transaction in early April, which greatly enhances our retrofit and mixed-fleet precision ag business," continued Hansotia. "We also launched our new leading brand, PTx, which combines precision ag technologies from PTx Trimble and Precision Planting, the cornerstones of AGCO's tech stack. The strategic alignment of these brands will expedite AGCO's technology transformation and support the future development and distribution of next-generation ag technologies for farmers and original equipment manufacturers around the world."
First Quarter Highlights
- Reported regional sales results(2):
Europe /Middle East ("EME") +1.5% ,North America (21.0)%,South America (39.8)%,Asia/Pacific /Africa ("APA") (17.8)% - Constant currency regional sales results(1)(2)(3): EME +
0.1% ,North America (21.3)%,South America (42.1)%, APA (15.5)% - Regional operating margin performance: EME
16.4% ,North America 5.8% ,South America 5.3% , APA4.8%
(1) See reconciliation of non-GAAP measures in appendix. |
(2) As compared to first quarter 2023. |
(3) Excludes currency translation impact. |
Market Update
Industry Unit Retail Sales | ||||
Tractors | Combines | |||
Three Months Ended March 31, 2024 | Change from Prior Year Period | Change from Prior Year Period | ||
(9) % | (17) % | |||
(18) % | (40) % | |||
(8) % | (30) % | |||
(4) Excludes compact tractors. |
(5) Based on Company estimates. |
"Planting activities are under way in the northern hemisphere and healthy yields would result in increases to grain inventories," said Hansotia. "Farm income levels are expected to further moderate in 2024, aligning more closely to historical averages following three prosperous years. We continue to expect increased adoption of precision technology, but more challenging farm economics are resulting in weaker global industry demand across most equipment categories. In the first quarter of 2024, retail tractor industry demand fell by an average of
North American industry retail tractor sales decreased
South American industry retail tractor sales decreased
In
Regional Results
AGCO Regional Net Sales (in millions)
Three Months Ended March 31, | 2024 | 2023 | % change | % change | % change translation | |||||
$ 729.6 | $ 923.1 | (21.0) % | 0.3 % | (21.3) % | ||||||
303.4 | 503.8 | (39.8) % | 2.3 % | (42.1) % | ||||||
EME | 1,729.0 | 1,703.8 | 1.5 % | 1.4 % | 0.1 % | |||||
APA | 166.7 | 202.8 | (17.8) % | (2.3) % | (15.5) % | |||||
Total | $ 2,928.7 | $ 3,333.5 | (12.1) % | 1.0 % | (13.1) % |
(6) See Footnotes for additional disclosures. |
Net sales in AGCO's North American region decreased
South American net sales decreased
Net sales in the
Net sales in
Outlook
On April 1, 2024, AGCO acquired an
AGCO's net sales for 2024, including the positive impact of PTx Trimble, are expected to be approximately
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AGCO will host a conference call with respect to this earnings announcement at 10 a.m. Eastern Time on Thursday, May 2. The Company will refer to slides on its conference call. Interested persons can access the conference call and slide presentation via AGCO's website at www.agcocorp.com in the "Events" section on the "Company/Investors" page of the website. A replay of the conference call will be available approximately two hours after the conclusion of the conference call for 12 months following the call. A copy of this press release will be available on AGCO's website for at least 12 months following the call.
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Safe Harbor Statement
Statements that are not historical facts, including the projections of earnings per share, production levels, sales, industry demand, market conditions, commodity prices, currency translation, farm income levels, margin levels, strategy, investments in product and technology development, new product introductions, restructuring and other cost reduction initiatives, production volumes, tax rates and general economic conditions, are forward-looking and subject to risks that could cause actual results to differ materially from those suggested by the statements. The following are among the factors that could cause actual results to differ materially from the results discussed in or implied by the forward-looking statements.
- Our financial results depend entirely upon the agricultural industry, and factors that adversely affect the agricultural industry generally, including declines in the general economy, adverse weather, tariffs, increases in farm input costs, lower commodity prices, lower farm income and changes in the availability of credit for our retail customers, will adversely affect us.
- We maintain an independent dealer and distribution network in the markets where we sell products. The financial and operational capabilities of our dealers and distributors are critical to our ability to compete in these markets. Higher inventory levels at our dealers and high utilization of dealer credit limits could negatively impact future sales and adversely impact our performance.
- On April 1, 2024, we completed the acquisition of the ag assets and technologies of Trimble through the formation of a joint venture, PTx Trimble, of which we own
85% . Financing the PTx Trimble transaction significantly increased our indebtedness and interest expense. We also have made various assumptions relating to the acquisition that may not prove to be correct and we may fail to realize all of the anticipated benefits of the acquisition. All acquisitions involve risk, and there is no certainty that the acquired business will operate as expected. Each of these items, as well as similar acquisition-related items, would adversely impact our performance. - A majority of our sales and manufacturing takes place outside
the United States , and many of our sales involve products that are manufactured in one country and sold in a different country. As a result, we are exposed to risks related to foreign laws, taxes and tariffs, trade restrictions, economic conditions, labor supply and relations, political conditions and governmental policies. These risks may delay or reduce our realization of value from our international operations. Among these risks are the uncertain consequences of Brexit and tariffs imposed on exports to and imports fromChina . - We cannot predict or control the impact of the conflict in
Ukraine on our business. Already it has resulted in reduced sales inUkraine as farmers have experienced economic distress, difficulties in harvesting and delivering their products, as well as general uncertainty. There is a potential for natural gas shortages, as well as shortages in other energy sources, throughoutEurope , which could negatively impact our production inEurope both directly and through interrupting the supply of parts and components that we use. It is unclear how long these conditions will continue, or whether they will worsen, and what the ultimate impact on our performance will be. In addition, AGCO sells products in, and purchases parts and components from, other regions where there could be hostilities. Any hostilities likely would adversely impact our performance. - Most retail sales of the products that we manufacture are financed, either by our joint ventures with Rabobank or by a bank or other private lender. Our joint ventures with Rabobank, which are controlled by Rabobank and are dependent upon Rabobank for financing as well, finance approximately
50% of the retail sales of our tractors and combines in the markets where the joint ventures operate. Any difficulty by Rabobank to continue to provide that financing, or any business decision by Rabobank as the controlling member not to fund the business or particular aspects of it (for example, a particular country or region), would require the joint ventures to find other sources of financing (which may be difficult to obtain), or us to find another source of retail financing for our customers, or our customers would be required to utilize other retail financing providers. As a result of the recent economic downturn, financing for capital equipment purchases generally has become more difficult in certain regions and in some cases, can be expensive to obtain. To the extent that financing is not available or available only at unattractive prices, our sales would be negatively impacted. In addition, Rabobank also is the lead lender in our revolving credit facility and term loans and for many years has been an important financing partner for us. Any interruption or other challenges in that relationship would require us to obtain alternative financing, which could be difficult. - Both AGCO and our finance joint ventures have substantial accounts receivable from dealers and end customers, and we would be adversely impacted if the collectability of these receivables was less than optimal; this collectability is dependent upon the financial strength of the farm industry, which in turn is dependent upon the general economy and commodity prices, as well as several of the other factors listed in this section.
- We have experienced substantial and sustained volatility with respect to currency exchange rate and interest rate changes, which can adversely affect our reported results of operations and the competitiveness of our products.
- Our success depends on the introduction of new products, particularly engines that comply with emission requirements and sustainable smart farming technology, which require substantial expenditures; there is no certainty that we can develop the necessary technology or that the technology that we develop will be attractive to farmers or available at competitive prices.
- Our expansion plans in emerging markets, including establishing a greater manufacturing and marketing presence and growing our use of component suppliers, could entail significant risks.
- Our business increasingly is subject to regulations relating to privacy and data protection, and if we violate any of those regulations, or otherwise are the victim of a cyberattack, we could be subject to significant claims, penalties and damages.
- Cybersecurity breaches including ransomware attacks and other means are rapidly increasing. We continue to review and improve our safeguards to minimize our exposure to future attacks. However, there always will be the potential of the risk that a cyberattack will be successful and will disrupt our business, either through shutting down our operations, destroying data, exfiltrating data or otherwise.
- We depend on suppliers for components, parts and raw materials for our products, and any failure by our suppliers to provide products as needed, or by us to promptly address supplier issues, will adversely impact our ability to timely and efficiently manufacture and sell products. Recently suppliers of several key parts and components have not been able to meet our demand and we have had to decrease our production levels. In addition, the potential of natural gas shortages in
Europe , as well as predicted overall shortages in other energy sources, could also negatively impact our production and that of our supply chain in the future. It is unclear when these supply chain disruptions will be restored or what the ultimate impact on production, and consequently sales, will be. - Any resurgence of COVID-19, or other future pandemics, could negatively impact our business through reduced sales, facilities closures, higher absentee rates, and reduced production at both our plants and the plants that supply us with parts and components. In addition, logistical and transportation-related issues and similar problems may also arise.
- We recently have experienced significant inflation in a range of costs, including for parts and components, shipping, and energy. While we have been able to pass along most of those costs through increased prices, there can be no assurance that we will be able to continue to do so. If we are not, it will adversely impact our performance.
- We face significant competition, and if we are unable to compete successfully against other agricultural equipment manufacturers, we would lose customers and our net sales and performance would decline.
- We have a substantial amount of indebtedness (and have incurred additional indebtedness as part of the PTx Trimble joint venture transaction), and, as a result, we are subject to certain restrictive covenants and payment obligations, as well as increased leverage generally, that may adversely affect our ability to operate and expand our business.
Further information concerning these and other factors is included in AGCO's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2023 and subsequent Form 10-Qs. AGCO disclaims any obligation to update any forward-looking statements except as required by law.
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About AGCO
AGCO (NYSE: AGCO) is a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology. AGCO delivers value to farmers and OEM customers through its differentiated brand portfolio including core brands like Fendt®, GSI®, Massey Ferguson®, PTx and Valtra®. AGCO's full line of equipment, smart farming solutions and services helps farmers sustainably feed our world. Founded in 1990 and headquartered in
Please visit our website at www.agcocorp.com
AGCO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited and in millions) | |||
March 31, 2024 | December 31, 2023 | ||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 2,455.8 | $ 595.5 | |
Accounts and notes receivable, net | 1,542.2 | 1,605.3 | |
Inventories, net | 3,781.9 | 3,440.7 | |
Other current assets | 594.2 | 699.3 | |
Total current assets | 8,374.1 | 6,340.8 | |
Property, plant and equipment, net | 1,886.7 | 1,920.9 | |
Right-of-use lease assets | 175.0 | 176.2 | |
Investments in affiliates | 520.5 | 512.7 | |
Deferred tax assets | 489.8 | 481.6 | |
Other assets | 396.4 | 346.8 | |
Intangible assets, net | 291.6 | 308.8 | |
Goodwill | 1,325.8 | 1,333.4 | |
Total assets | $ 13,459.9 | $ 11,421.2 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current Liabilities: | |||
Borrowings due within one year | $ 300.4 | $ 15.0 | |
Accounts payable | 1,238.0 | 1,207.3 | |
Accrued expenses | 2,489.2 | 2,903.8 | |
Other current liabilities | 185.6 | 217.5 | |
Total current liabilities | 4,213.2 | 4,343.6 | |
Long-term debt, less current portion and debt issuance costs | 3,425.7 | 1,377.2 | |
Operating lease liabilities | 133.0 | 134.4 | |
Pension and postretirement health care benefits | 167.9 | 170.5 | |
Deferred tax liabilities | 119.5 | 122.6 | |
Other noncurrent liabilities | 645.4 | 616.1 | |
Total liabilities | 8,704.7 | 6,764.4 | |
Stockholders' Equity: | |||
AGCO Corporation stockholders' equity: | |||
Preferred stock | — | — | |
Common stock | 0.7 | 0.7 | |
Additional paid-in capital | — | 4.1 | |
Retained earnings | 6,505.9 | 6,360.0 | |
Accumulated other comprehensive loss | (1,751.5) | (1,708.1) | |
Total AGCO Corporation stockholders' equity | 4,755.1 | 4,656.7 | |
Noncontrolling interests | 0.1 | 0.1 | |
Total stockholders' equity | 4,755.2 | 4,656.8 | |
Total liabilities and stockholders' equity | $ 13,459.9 | $ 11,421.2 | |
See accompanying notes to condensed consolidated financial statements. | |||
AGCO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in millions, except per share data) | |||
Three Months Ended March 31, | |||
2024 | 2023 | ||
Net sales | $ 2,928.7 | $ 3,333.5 | |
Cost of goods sold | 2,158.9 | 2,478.6 | |
Gross profit | 769.8 | 854.9 | |
Selling, general and administrative expenses | 350.4 | 331.8 | |
Engineering expenses | 130.9 | 119.6 | |
Amortization of intangibles | 13.9 | 14.8 | |
Restructuring expenses | 1.0 | 1.4 | |
Income from operations | 273.6 | 387.3 | |
Interest expense, net | 1.9 | 0.5 | |
Other expense, net | 50.8 | 50.4 | |
Income before income taxes and equity in net earnings of affiliates | 220.9 | 336.4 | |
Income tax provision | 69.1 | 120.2 | |
Income before equity in net earnings of affiliates | 151.8 | 216.2 | |
Equity in net earnings of affiliates | 16.2 | 16.4 | |
Net income | 168.0 | 232.6 | |
Net loss attributable to noncontrolling interests | — | — | |
Net income attributable to AGCO Corporation and subsidiaries | $ 168.0 | $ 232.6 | |
Net income per common share attributable to AGCO Corporation and subsidiaries: | |||
Basic | $ 2.25 | $ 3.11 | |
Diluted | $ 2.25 | $ 3.10 | |
Cash dividends declared and paid per common share | $ 0.29 | $ 0.24 | |
Weighted average number of common and common equivalent shares outstanding: | |||
Basic | 74.6 | 74.9 | |
Diluted | 74.7 | 75.0 | |
See accompanying notes to condensed consolidated financial statements. | |||
AGCO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in millions) | |||
Three Months Ended March 31, | |||
2024 | 2023 | ||
Cash flows from operating activities: | |||
Net income | $ 168.0 | $ 232.6 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation | 63.3 | 53.6 | |
Amortization of intangibles | 13.9 | 14.8 | |
Stock compensation expense | 8.4 | 14.0 | |
Equity in net earnings of affiliates, net of cash received | (16.2) | (16.4) | |
Deferred income tax benefit | (7.3) | (3.9) | |
Other | 17.7 | 2.4 | |
Changes in operating assets and liabilities: | |||
Accounts and notes receivable, net | 24.1 | (298.1) | |
Inventories, net | (420.1) | (402.6) | |
Other current and noncurrent assets | 16.8 | (69.9) | |
Accounts payable | 74.2 | 39.2 | |
Accrued expenses | (358.2) | (155.9) | |
Other current and noncurrent liabilities | 45.4 | 33.1 | |
Total adjustments | (538.0) | (789.7) | |
Net cash used in operating activities | (370.0) | (557.1) | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (95.0) | (125.3) | |
Proceeds from sale of property, plant and equipment | 0.2 | 0.1 | |
Purchase of businesses, net of cash acquired | — | (0.9) | |
Investments in unconsolidated affiliates, net | — | (0.1) | |
Other | — | (2.6) | |
Net cash used in investing activities | (94.8) | (128.8) | |
Cash flows from financing activities: | |||
Proceeds from indebtedness | 2,380.6 | 501.7 | |
Repayments of indebtedness | (0.4) | (4.4) | |
Payment of dividends to stockholders | (21.6) | (18.0) | |
Payment of minimum tax withholdings on stock compensation | (9.7) | (17.7) | |
Payment of debt issuance costs | (11.9) | — | |
Net cash provided by financing activities | 2,337.0 | 461.6 | |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (11.9) | (6.5) | |
Increase (decrease) in cash, cash equivalents and restricted cash | 1,860.3 | (230.8) | |
Cash, cash equivalents and restricted cash, beginning of period | 595.5 | 789.5 | |
Cash, cash equivalents and restricted cash, end of period | $ 2,455.8 | $ 558.7 | |
See accompanying notes to condensed consolidated financial statements. | |||
AGCO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions, except share amounts, per share data)
1. ACCOUNTS RECEIVABLE SALES AGREEMENTS
The Company has accounts receivable sales agreements that permit the sale, on an ongoing basis, of a majority of its wholesale receivables in
In addition, the Company sells certain trade receivables under factoring arrangements to other financial institutions around the world. During the three months ended March 31, 2024 and March 31, 2023, the cash received from these arrangements was approximately
Losses on sales of receivables associated with the accounts receivable financing facilities discussed above, reflected within "Other expense, net" in the Company's Condensed Consolidated Statements of Operations, were approximately
The Company's finance joint ventures in
2. INVENTORIES
Inventories, net at March 31, 2024 and December 31, 2023 were as follows (in millions):
March 31, 2024 | December 31, 2023 | ||
Finished goods | $ 1,608.6 | $ 1,460.7 | |
Repair and replacement parts | 831.9 | 823.1 | |
Work in process | 379.8 | 255.2 | |
Raw materials | 961.6 | 901.7 | |
Inventories, net | $ 3,781.9 | $ 3,440.7 |
3. INDEBTEDNESS
Long-term debt consisted of the following at March 31, 2024 and December 31, 2023 (in millions):
March 31, 2024 | December 31, 2023 | ||
Credit facility, expires 2027 | $ 580.0 | $ — | |
269.7 | 276.7 | ||
EIB Senior Term Loan due 2029 | 269.7 | 276.7 | |
EIB Senior Term Loan due 2030 | 183.4 | — | |
Senior term loans due between 2025 and 2028 | 158.0 | 162.1 | |
647.2 | 664.0 | ||
400.0 | — | ||
700.0 | — | ||
Term Loan Facility borrowings | 500.0 | — | |
Other long-term debt | 2.9 | 3.1 | |
Debt issuance costs | (13.5) | (3.1) | |
3,697.4 | 1,379.5 | ||
Less: | |||
Current portion of other long-term debt | (2.0) | (2.3) | |
(269.7) | — | ||
Total long-term indebtedness | $ 3,425.7 | $ 1,377.2 |
As of March 31, 2024 and December 31, 2023, the Company had short-term borrowings due within one year excluding the current portion of long-term debt, of approximately
European Investment Bank ("EIB") Senior Term Loan due 2030
On January 25, 2024, the Company entered into an additional multi-currency Finance Contract with the EIB permitting the Company to borrow up to
On March 21, 2024, the Company issued (i)
Credit Facility and Term Loan Facility
The Company has a credit facility providing for a
In December 2023, the Company amended the Credit Facility to allow for incremental borrowings in the form of a delayed draw term loan facility in an aggregate principal amount of
The increase in indebtedness for the three months ended March 31, 2024 compared to the same period in 2023 related to the PTx Trimble joint venture transaction. The transaction closed on April 1, 2024. The Company financed the joint venture transaction through a combination of the Senior Notes due 2027 and 2034, the Term Loan Facility and the remainder through other borrowings and cash on hand.
4. SEGMENT REPORTING
The Company has four operating segments that are also its reportable segments, which consist of the
Three Months Ended March 31, | North | South |
| Total | ||||||
2024 | ||||||||||
Net sales | $ 729.6 | $ 303.4 | $ 1,729.0 | $ 166.7 | $ 2,928.7 | |||||
Income from operations | 42.4 | 16.2 | 282.9 | 8.0 | 349.5 | |||||
2023 | ||||||||||
Net sales | $ 923.1 | $ 503.8 | $ 1,703.8 | $ 202.8 | $ 3,333.5 | |||||
Income from operations | 102.1 | 99.5 | 239.4 | 18.1 | 459.1 |
A reconciliation from the segment information to the consolidated balances for income from operations is set forth below (in millions):
Three Months Ended March 31, | |||
2024 | 2023 | ||
Segment income from operations | $ 349.5 | $ 459.1 | |
Corporate expenses | (53.0) | (42.1) | |
Amortization of intangibles | (13.9) | (14.8) | |
Stock compensation expense | (8.0) | (13.5) | |
Restructuring expenses | (1.0) | (1.4) | |
Consolidated income from operations | $ 273.6 | $ 387.3 | |
RECONCILIATION OF NON-GAAP MEASURES
This earnings release discloses adjusted income from operations, adjusted operating margin, adjusted net income, adjusted net income per share and net sales on a constant currency basis, each of which exclude amounts that are typically included in the most directly comparable measure calculated in accordance with
The following is a reconciliation of reported income from operations, net income and net income per share to adjusted income from operations, adjusted net income and adjusted net income per share for the three months ended March 31, 2024 and 2023 (in millions, except per share data):
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Income From | Net | Net Income | Income From | Net | Net Income | ||||||
As reported | $ 273.6 | $ 168.0 | $ 2.25 | $ 387.3 | $ 232.6 | $ 3.10 | |||||
Restructuring expenses(3) | 1.0 | 0.7 | 0.01 | 1.4 | 0.9 | 0.01 | |||||
Transaction-related costs(4) | 6.2 | 4.6 | 0.06 | — | — | — | |||||
Brazilian tax amnesty program(5) | — | — | — | — | 29.5 | 0.39 | |||||
As adjusted | $ 280.8 | $ 173.3 | $ 2.32 | $ 388.8 | $ 263.1 | $ 3.51 | |||||
(1) | Net income and net income per share amounts are after tax. |
(2) | Rounding may impact summation of amounts. |
(3) | The restructuring expenses recorded during the three months ended March 31, 2024 and March 31, 2023 related primarily to severance and other related costs associated with the Company's rationalization of certain manufacturing facilities and administrative offices. |
(4) | The transaction related costs recorded during the three months ended March 31, 2024 related to the Company's acquisition of Trimble Inc.'s agriculture business through the formation of the PTx Trimble joint venture. |
(5) | During the three months ended March 31, 2023, the Company applied for enrollment in the Brazilian government's "Litigation Zero" tax amnesty program whereby cases being disputed at the administrative court level of review for a period of more than ten years can be considered for amnesty. The Company recorded its best estimate of the ultimate settlement under the amnesty program of approximately |
The following is a reconciliation of adjusted operating margin for the three months ended March 31, 2024 and March 31, 2023 (in millions):
Three Months Ended March 31, | |||
2024 | 2023 | ||
Net sales | $ 2,928.7 | $ 3,333.5 | |
Income from operations | 273.6 | 387.3 | |
Adjusted income from operations(1) | $ 280.8 | $ 388.8 | |
Operating margin(2) | 9.3 % | 11.6 % | |
Adjusted operating margin(2) | 9.6 % | 11.7 % | |
(1) | Refer to the previous table for the reconciliation of income from operations to adjusted income from operations. |
(2) | Operating margin is defined as the ratio of income from operations divided by net sales. Adjusted operating margin is defined as the ratio of adjusted income from operations divided by net sales. |
Adjusted targeted operating margin and earnings per share excludes restructuring expenses, transaction-related costs and amortization of acquired PTx Trimble intangible assets.
The following table sets forth, for the three months ended March 31, 2024 and 2023, the impact to net sales of currency translation by geographical segment (in millions, except percentages):
Three Months Ended March 31, | Change due to currency translation | ||||||||
2024 | 2023 | % change | $ | % | |||||
$ 729.6 | $ 923.1 | (21.0) % | $ 3.1 | 0.3 % | |||||
303.4 | 503.8 | (39.8) % | 11.4 | 2.3 % | |||||
1,729.0 | 1,703.8 | 1.5 % | 23.8 | 1.4 % | |||||
166.7 | 202.8 | (17.8) % | (4.6) | (2.3) % | |||||
$ 2,928.7 | $ 3,333.5 | (12.1) % | $ 33.7 | 1.0 % | |||||
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SOURCE AGCO Corporation
FAQ
What were AGCO's Q1 2024 net sales and earnings per share?
What joint venture transaction did AGCO complete in April 2024?
What special dividend did AGCO announce in April 2024?
