AGCO has begun further expansion of its Jackson, Minn., manufacturing center. During the next three years, AGCO will invest an estimated $42 million in infrastructure, increasing production capacity and efficiency in order to help meet growing demand for the tractors and application equipment built there. Eric Fisher, AGCO director of operations in Jackson, was joined by city of Jackson Mayor Wayne Walter in a groundbreaking ceremony at the site May 7, 2013, to mark the start of the facility improvement project. The three-year endeavor is made up of seven phases affecting all areas of the campus, including component manufacturing, the tractor assembly line and the application equipment assembly line. Once completed, the expansion will create 75 additional permanent jobs at the facility, bringing the total number of employees to more than 1,200. The project will increase production capacity by 25% for both the tractor and sprayer assembly lines while maintaining best-in-class product quality. The first phase, scheduled to be complete fall 2013, includes a 30,000-square-foot expansion of the component manufacturing area, which will increase capacity by 20% and improve efficiency by reengineering the flow of materials to assembly stations. The installation of an additional robotic welder and a sheet laser will improve productivity and positively impact all equipment built in Jackson. Remaining phases include expanding the tractor assembly line for increased production capacity, an in-line paint system for the application assembly line, and cutting-edge testing capability of finished products. Looking Back: Recent Investments in Jackson Facility.

AGCO Corporation reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported net sales of $2,403.1 million compared to $2,273.7 million a year ago. Income from operations was $177.4 million compared to $169.8 million a year ago. Income before income taxes and equity in net earnings of affiliates was $108.2 million compared to $152.4 million a year ago. Net income attributable to the company and subsidiaries was $118 million or $1.19 per diluted share compared to $120.2 million or $1.21 per diluted share a year ago. The company’s results were negatively impacted by a weaker sales mix, increased engineering expenses and transition costs associated with the new Fendt tractor assembly facility. Net cash used in operating activities was $261.3 million compared to $280.5 million a year ago. Purchases of property, plant and equipment were $94 million compared to $87.1 million a year ago. The company expects earnings per share in a range from $5.50 to $5.70 for the full year of 2013. Net sales are expected to range from $10.5 billion to $10.7 billion. Gross margin improvement is expected to be partially offset by increased engineering expenditures to meet Tier 4 final emission requirements and market development expenses. The company now forecasting an effective tax rate of between 33% and 34% for 2013. The company expects the increased capital expenditures to be in the range of $400 million to $425 million and free cash flow in excess of $150 million after funding the expected increase in capital expenditures and higher inventory levels associated with the Tier 4 product transition. In the second quarter of 2013, operating margins are expected to be approximately flat with the second quarter of 2012. Second quarter earnings per share are expected to be down 10% to 15% from 2012 levels due to -- primarily due to higher income tax expense. The company projecting earnings growth in the second half of 2013 compared to the same period of last year.

AGCO Corporation announced that its board of directors declared a quarterly dividend of 10 cents per share on its common stock. The dividend is payable on June 14, 2013, to shareholders of record May 15, 2013.