agco corp (AGCO) Key Developments
AGCO and Russian Machines Create Joint Venture
Nov 1 13
AGCO, Your Agriculture Company and Russian Machines announced the creation of a new joint venture in order to manufacture and distribute agricultural equipment and spare parts in Russia. AGCO and Russian Machines plan to make a total investment of approximately $100 million in the joint venture over the next three years. The joint venture is expected to begin operations in early 2014, with AGCO and Russian Machines each having an equal ownership. The manufacturing facility will be located in Golitsyno, near Moscow, with a total area of nearly 12.5 hectares including 27,000 square meters of production facilities. The site will include a product show room, a training center and will feature manufacturing processes. The training center will offer courses designed to educate customers and dealers on the latest agri machinery technologies. Additional plans include the creation of a Model Farm, based on the agricultural business of Basic Element, to develop and disseminate modern full-cycle agricultural solutions that help to improve efficiency of Russian farmers. The joint venture plans to offer comprehensive agricultural solutions for medium and large scale farmers, including support services such as financing and insurance, leveraging Russian Machines’ supply chain strengths and providing AGCO with a strong local partner. AGCO will introduce more of its high-tech products into the Russian market, while Russian Machines will provide the necessary production capabilities and support with local business development expertise.
AGCO Corporation Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2013; Provides Earnings Guidance for the Year 2013
Oct 29 13
AGCO Corporation announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2013. The company reported net sales of approximately $2.5 billion during the third quarter of 2013, an increase of approximately 7.9% compared to net sales of $2.3 billion for the third quarter of 2012. Net income for the third quarter of 2013 was $1.27 per share. These results compare to net income of $0.96 per share for the third quarter of 2012. Excluding the unfavorable currency translation impact of approximately 1.8%, net sales in the third quarter of 2013 increased approximately 9.7% compared to the third quarter of 2012. For the quarter, income from operations was $199.0 million, income before income taxes and equity in net earnings of affiliates was $173.6 million and net income attributable to AGCO Corporation and subsidiaries was $126.2 million against income from operations of $139.6 million, income before income taxes and equity in net earnings of affiliates of $110.0 million and net income attributable to AGCO Corporation and subsidiaries of $94.5 million a year ago. Net income was $125.2 million against $92.1 million a year ago.
Net sales for the first nine months of 2013 were approximately $7.9 billion, an increase of approximately 9.2% compared to the same period in 2012. For the first nine months of 2013, net income was $4.61 per share. This result compares to net income of $4.25 per share for the first nine months of 2012. Excluding the unfavorable impact of currency translation of approximately 1.6%, net sales for the first nine months of 2013 increased approximately 10.8% compared to the same period in 2012. For the nine months, income from operations was $703.5 million, income before income taxes and equity in net earnings of affiliates was $638.1 million and net income attributable to AGCO Corporation and subsidiaries was $457.9 million against income from operations of $574.3 million, income before income taxes and equity in net earnings of affiliates of $506.5 million and net income attributable to AGCO Corporation and subsidiaries of $419.6 million a year ago. Net income was $455.4 million against $415.4 million a year ago. Net cash provided by operating activities was $169.0 million against net cash used in operating activities of $33.2 million a year ago. Purchases of property, plant and equipment was $263.8 million against $235.2 million a year ago.
AGCO is targeting earnings per share of approximately $6.00 for the full year of 2013. Net sales are expected to range from $10.8 billion to $11.0 billion. Gross margin improvement is expected to be partially offset by increased market development expenses and higher engineering expenditures to meet Tier 4 final emission requirements. The company expects increased capital expenditures to be in the $400 million to $425 million range and free cash flow in the $200 million to $250 million, after funding the expected increase in capital expenditures and higher inventory levels associated with Tier 4 product transition.
AGCO Corporation Announces Board of Directors Appointments
Oct 25 13
AGCO Corporation announced the election of Roy Armes, Chairman, President and CEO of Cooper Tire and Rubber Company, and Michael Arnold, President and CEO of Ryerson Inc., to its Board of Directors effective immediately. Mr. Armes joined Cooper Tire and Rubber Company in 2007 as President and CEO and was appointed Chairman in 2008. Before joining Cooper Tire and Rubber Company he held a number of executive positions with Whirlpool Corporation beginning in 1975. Mr. Arnold has served as President and CEO of Ryerson Inc. since 2011. Prior to joining Ryerson, he spent over 30 years with The Timken Company in a number of increasingly responsible senior management positions.
AGCO Announces Quarterly Dividend, Payable on December 16, 2013
Oct 24 13
AGCO announced that its board of directors declared a regular quarterly dividend of $0.10 per common share to be paid on December 16, 2013 to all stockholders of record as of the close of business on November 15, 2013.
AGCO Corporation, Q3 2013 Earnings Call, Oct 29, 2013
Oct 9 13
AGCO Corporation, Q3 2013 Earnings Call, Oct 29, 2013