AGCO Q3 2024 Earnings Report
Key Takeaways
AGCO reported net sales of $2.6 billion for the third quarter, a 24.8% decrease year-over-year. Reported earnings per share were $0.40, and adjusted earnings per share were $0.68. The company reaffirmed its full-year adjusted operating margin target of 9% and revised its 2024 sales and earnings per share outlook to reflect the Grain and Protein divestiture.
Net sales decreased by 24.8% year-over-year, totaling $2.6 billion.
Reported earnings per share (EPS) stood at $0.40, while adjusted EPS reached $0.68.
The full-year adjusted operating margin target of 9% was reaffirmed.
The 2024 sales and earnings per share outlook was revised to reflect the Grain and Protein divestiture.
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AGCO Revenue by Geographic Location
Forward Guidance
AGCO expects net sales for 2024 to be approximately $12.0 billion, with adjusted operating margins projected to be approximately 9%. Adjusted earnings per share are targeted at approximately $7.50.
Positive Outlook
- Increased cost controls
- Modestly lower investments in engineering.
- Focus on higher margin products
- Better positioning for an upturn in the cycle.
- Ongoing restructuring program
Challenges Ahead
- Lower sales volumes
- Lower production volumes
- Softer industry sales
- Lower end-market demand
- Weaker global industry demand across most equipment categories.
Revenue & Expenses
Visualization of income flow from segment revenue to net income