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Mar 31, 2024
AGCO Q1 2024 Earnings Report
AGCO's first quarter results were reported, with net sales of $2.9 billion and earnings per share of $2.25.
Key Takeaways
AGCO reported a decrease in net sales by 12.1% to $2.9 billion for the first quarter ended March 31, 2024, with reported earnings per share of $2.25 and adjusted earnings per share of $2.32. The results reflect declining global demand for agricultural equipment and strategic production cuts to reduce dealer inventories. The company completed the PTx Trimble joint venture transaction in early April.
Net sales were $2.9 billion, a decrease of 12.1% compared to the first quarter of 2023.
Reported earnings per share (EPS) was $2.25, while adjusted EPS was $2.32.
The PTx Trimble joint venture was closed on April 1, enhancing the precision ag business.
A variable special dividend of $2.50 per share was announced on April 25.
Revenue by Geographic Location
Forward Guidance
AGCO expects net sales of approximately $13.5 billion for 2024, including the positive impact of PTx Trimble. Adjusted operating margins are projected to be approximately 11.3%, and adjusted earnings per share are targeted at approximately $12.00.
Positive Outlook
- Net sales are expected to be approximately $13.5 billion, including the impact of PTx Trimble.
- Adjusted operating margins are projected to be approximately 11.3%.
- Adjusted earnings per share are targeted at approximately $12.00.
- Consolidation of PTx Trimble is expected to provide benefits.
- Increased cost controls are being implemented.
Challenges Ahead
- Lower sales volumes are expected.
- Adverse foreign currency translation is anticipated.
- Modestly lower investments in engineering and other technology efforts are planned.
- Market is expecting lower production volumes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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