For Immediate Release
Vice President, Investor Relations
AGCO REPORTS FIRST QUARTER RESULTS
DULUTH, GA – May 5 – AGCO, Your Agriculture Company (NYSE: AGCO), a worldwide manufacturer and distributor of agricultural equipment and solutions, reported its results for the first quarter ended March 31, 2020. “AGCO delivered solid results for the first quarter under challenging conditions,” stated Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer. “AGCO’s current priorities are the safety of our employees and serving the world’s farmers as we do our part to minimize the impact of the COVID-19 pandemic on the world’s food supply. We are facing a very dynamic environment requiring rigorous and coordinated business planning to manage our manufacturing, supply chain and aftermarket operations, to effectively serve our dealers and end-customers as well as to maintain a productive workforce. In addition to restarting factories and ramping up production, we remain focused on maintaining parts and service support for our dealers and our customers. It is rewarding to see our employees rise to the challenge to find innovative solutions to keep our business running effectively and support farmers as they continue their important work.”
Net sales for the first quarter were approximately $1.9 billion, a decrease of approximately 3.4% compared to the first quarter of 2019. Reported net income was $0.85 per share for the first quarter of 2020 and adjusted net income, excluding restructuring expenses, was $0.86 per share. These results compare to reported net income of $0.84 per share and adjusted net income, excluding restructuring expenses, of $0.86 per share for the first quarter of 2019. Excluding unfavorable currency translation impacts of approximately 3.6%, net sales in the first quarter of 2020 increased approximately 0.2% compared to the first quarter of 2019.
First Quarter Highlights
Reported regional sales results(1): Europe/Middle East (“EME”) (8.0)%, North America 11.2%, South America (1.4)%, Asia/Pacific/Africa (“APA”) (17.8)%
Constant currency regional sales results(1)(2): EME (4.7)%, North America 11.7%, South America 13.8%, APA (13.4)%
Regional operating margin performance: EME 9.2%, North America 11.0%, South America (5.7)%, APA (1.2)%
New Term Loan - $520 million facility completed in April to provide incremental liquidity
Repurchases reduced outstanding shares by approximately 1.0 million in the first three months of 2020
Full-year outlook withdrawn on March 23rd
(1)As compared to first quarter 2019.
(2)Excludes currency translation impact. See reconciliation in appendix.
“Our first quarter results demonstrated strong execution as we overcame COVID-19 related production disruptions in China and Europe to expand operating margins compared to the first quarter of last year,” stated Mr. Richenhagen. “Strong performance in our North America region highlighted our results driven by improved product availability and an increase in the retail demand of our products. The Precision Planting business also produced significantly improved results over the prior year in its seasonally important first quarter. Our Europe/Middle East