AGCO, the maker of Massey Ferguson, Fendt and Valtra machinery, has reported bumper profits for its 2018 financial year thanks to double-digit sales growth of new combine harvesters.
Despite continued weakness in grain commodity prices during the year, AGCO reported growth of 13% in 2018 as sales hit $9.4bn (€8.2bn).
Operating profits for AGCO soared by close to 20% during the year to reach $501m (€440m), as profit margins widened from 5% in 2017 to 5.4% in 2018. Pre-tax profits jumped by more than a quarter (+27%) in 2018 to reach $360m (€315m). During the year AGCO returned $184m (€160m) to shareholders via an ongoing share repurchase programme. The company has returned $1.2bn (€1bn) to shareholders over the last six years.
ADVERTISEMENT
Driving this performance was strong growth in sales of new combines. AGCO said sales of combine harvesters were up 10% in North America, 13% in western Europe and 9% in South America. In contrast, sales of new tractors were up a modest 2% in North America, flat in South America and down 2% in Europe.
AGCO chief executive Martin Richenhagen said the outlook for sales in 2019 is favourable thanks to improving farm incomes in Europe and Brazil, which will more than offset weaker sales in Argentina. While the US Department of Agriculture is forecasting farm incomes in the US to fall in 2019, AGCO says it expects continued sales growth for high-horsepower machinery.
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
AGCO, the maker of Massey Ferguson, Fendt and Valtra machinery, has reported bumper profits for its 2018 financial year thanks to double-digit sales growth of new combine harvesters.
Despite continued weakness in grain commodity prices during the year, AGCO reported growth of 13% in 2018 as sales hit $9.4bn (€8.2bn).
Operating profits for AGCO soared by close to 20% during the year to reach $501m (€440m), as profit margins widened from 5% in 2017 to 5.4% in 2018. Pre-tax profits jumped by more than a quarter (+27%) in 2018 to reach $360m (€315m). During the year AGCO returned $184m (€160m) to shareholders via an ongoing share repurchase programme. The company has returned $1.2bn (€1bn) to shareholders over the last six years.
Driving this performance was strong growth in sales of new combines. AGCO said sales of combine harvesters were up 10% in North America, 13% in western Europe and 9% in South America. In contrast, sales of new tractors were up a modest 2% in North America, flat in South America and down 2% in Europe.
AGCO chief executive Martin Richenhagen said the outlook for sales in 2019 is favourable thanks to improving farm incomes in Europe and Brazil, which will more than offset weaker sales in Argentina. While the US Department of Agriculture is forecasting farm incomes in the US to fall in 2019, AGCO says it expects continued sales growth for high-horsepower machinery.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS