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Dec 31, 2021
AGCO Q4 2021 Earnings Report
AGCO reported fourth quarter results with net sales increasing by approximately 16.1% compared to the fourth quarter of 2020.
Key Takeaways
AGCO reported net sales of approximately $3.2 billion for the fourth quarter of 2021, an increase of approximately 16.1% compared to the fourth quarter of 2020. Reported net income was $3.75 per share for the fourth quarter of 2021, and adjusted net income was $3.08 per share.
Reported fourth quarter regional sales results: Europe/Middle East (“EME”) +4.3%, North America +39.1%, South America +51.6%, Asia/Pacific/Africa (“APA”) +15.0%
Constant currency fourth quarter regional sales results: EME +8.7%, North America +38.8%, South America +56.2%, APA +15.4%
Fourth quarter regional operating margin performance: EME 12.1%, North America 3.5%, South America 12.0%, APA 13.6%
Full-year operating margins and adjusted operating margins improved to 9.0% and 9.1% respectively, in 2021 compared to 6.6% and 7.0% in 2020
Revenue by Geographic Location
Forward Guidance
AGCO’s net sales for 2022 are expected to be approximately $12.3 billion, reflecting improved sales volumes and pricing partially offset by negative foreign currency translation. Based on these assumptions, 2022 earnings per share are targeted at approximately $11.50.
Positive Outlook
- Improved sales volumes
- Improved pricing
- Gross margins are projected to improve from 2021 levels
- Operating margins are projected to improve from 2021 levels
- Increased engineering and other technology investments to support AGCO’s precision agriculture and digital initiatives
Challenges Ahead
- Negative foreign currency translation
- The ability of the Company’s supply chain to deliver parts and components on schedule is currently difficult to predict.
- AGCO’s results will be impacted if the actual supply chain delivery performance differs from these estimates.
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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