AGCO, the owner of the Massey Ferguson, Fendt and Valtra tractor and machinery brands, reported its results for the first quarter ended March 31, 2021. Net sales for the first quarter were approximately $2.4 billion, an increase of approximately 23.4% compared to the first quarter of 2020. Reported net income was $1.99 per share for the first quarter of 2021, and adjusted net income (3) , which excludes restructuring expenses, was $2.00 per share. These results compare to reported net income of $0.85 per share, and adjusted net income, excluding restructuring expenses, of $0.86 per share for the first quarter of 2020. Excluding favorable currency translation impacts of approximately 3.5%, net sales in the first quarter of 2021 increased approximately 19.8% compared to the first quarter of 2020.
Highlights
• Reported regional sales results : Europe/Middle East – 19.2%, North America – 10.7%, South America – 56.3%, Asia/Pacific/Africa – 83.1%
• Constant currency regional sales results : EME 11.5%, North America 9.7%, South America 83.8%, APA 65.9%
• Regional operating margin performance: EME 10.9%, North America 12.3%, South America 6.7%, APA 10.5%
• Increased quarterly dividend by 25% and declared variable special dividend of $4.00 per share
• Raised full-year outlook for net sales and net income per share
“AGCO continued its strong operational performance in the first quarter and set records for first quarter operating income and earnings per share,” stated Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer. “Favorable market demand and positive market response to our technology-focused products helped produce sales growth and margin expansion across all regions. Outstanding execution from our team allowed us to minimize the impact of ongoing supply constraints, and an improved pricing environment helped offset material and freight cost inflation. Healthy farm fundamentals are driving robust replacement demand and our order boards remain well ahead of last year. With increased visibility for the coming quarters, we have raised our net sales and earnings forecast for 2021 while enabling continued investment in our premium technology, smart farming solutions and enhanced digital capabilities.”
