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Jun 30, 2022
AGCO Q2 2022 Earnings Report
AGCO delivered solid results in the second quarter by remaining focused on its farmer-first strategy, while effectively managing the challenges associated with the cyberattack, currency headwinds and ongoing supply chain constraints.
Key Takeaways
AGCO reported net sales for the second quarter of approximately $2.9 billion, an increase of approximately 2.3% compared to the second quarter of 2021. Reported net income was $2.37 per share for the second quarter of 2022, and adjusted net income was $2.38 per share.
Reported regional sales results: Europe/Middle East (“EME”) (10.3)%, North America +0.7%, South America +86.6%, Asia/Pacific/Africa (“APA”) (5.5)%
Constant currency regional sales results: EME +3.2%, North America +1.4%, South America +77.2%, APA +1.7%
Regional operating margin performance: EME 11.0%, North America 6.9%, South America 16.5%, APA 14.1%
Fully operational within approximately two weeks of May 2022 cyberattack
AGCO
AGCO
AGCO Revenue by Geographic Location
Revenue by Geographic Location
North America Revenue
CapyFin.comSouth America Revenue
CapyFin.comEurope/Middle East Revenue
CapyFin.comAsia/Pacific/Africa Revenue
CapyFin.com Forward Guidance
AGCO's outlook is based on current estimates of component deliveries. AGCO’s results will be impacted if the actual supply chain delivery performance differs from these estimates.
Positive Outlook
- Net sales for 2022 of $12.4 billion to $12.6 billion
- Gross and operating margins are projected to improve from 2021 levels, reflecting the impact of higher sales and production volumes as well as favorable pricing to offset material and labor cost inflation
- Increased investments in engineering and other technology investments to support AGCO’s precision ag and digital initiatives
- Full year adjusted earnings per share of $11.70 to $11.90
- Healthy grain production is forecasted for the major agricultural production regions.
Challenges Ahead
- The ability of the Company’s supply chain to deliver parts and components on schedule is currently difficult to predict.
- COVID-19 has negatively impacted our business, initially through closures, higher absentee rates, and reduced production at both our plants and the plants that supply us with parts and components, and more recently through supply chain challenges.
- 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.
- 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, and 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.
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income