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Jun 30, 2024
AGCO Q2 2024 Earnings Report
AGCO's second-quarter results were influenced by weakening market conditions and production cuts, with net sales decreasing 15.1% year-over-year.
Key Takeaways
AGCO reported a decrease in net sales by 15.1% to $3.2 billion, with a net loss of $(4.92) per share, including the estimated loss on the Grain & Protein business held for sale. Adjusted earnings per share were $2.53. The company lowered its 2024 sales and earnings outlook due to softening market conditions and announced an agreement to divest the Grain & Protein business.
Net sales decreased by 15.1% year-over-year to $3.2 billion.
Reported earnings per share were $(4.92), while adjusted earnings per share were $2.53.
The company lowered its 2024 sales and earnings outlook due to further softening market conditions.
An agreement to divest the Grain & Protein business was announced on July 25, 2024.
Revenue by Geographic Location
Forward Guidance
AGCO expects net sales for 2024 to be approximately $12.5 billion, and adjusted earnings per share are targeted at approximately $8.00.
Positive Outlook
- Net sales for 2024, including the positive impact of PTx Trimble, are expected to be approximately $12.5 billion.
- Adjusted operating margins are projected to be approximately 9%, reflecting the consolidation of PTx Trimble.
- Increased cost controls.
- Modestly lower investments in engineering.
- 2024 adjusted earnings per share are targeted at approximately $8.00.
Challenges Ahead
- Lower sales volumes.
- Adverse foreign currency translation.
- Lower production volumes.
- Weakening demand in the agriculture industry.
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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