Agco Corp De (AGCO) 10-Q Quarterly Report May 2020

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•	Full-year outlook withdrawn on March 23^rd

⁽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

The following information was filed by Agco Corp De (AGCO) on Tuesday, May 5, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Agco Corp De's 10-Q Quarterly Report:

Revenue - Product Highlight
However, the impacts of the COVID-19 pandemic continue to be unpredictable, and a range of factors could impact our future sales, including additional production constraints and changing industry conditions impacted by commodity prices, farmer sentiment and the other factors that we discuss below under "Risk Factors."

Revenue - Product Highlight
In our APA region, net sales decreased during the three months ended March 31, 2020 compared to the same period in 2019, primarily driven by sales declines in Africa and Asia, as well as the negative impact of foreign currency translation.
Financial - Income Highlight
In our APA region, income from operations decreased for the three months ended March 31, 2020 compared to the same period in 2019, primarily due to lower net sales and production volumes.
Revenue - Product Highlight
We do not believe that this decline in April revenue is indicative of sales for the remainder of our second quarter and year, as the decline appears to have been largely production-driven and not demand-driven.
Financial - Shares Highlight
Equity in net earnings of affiliates, which is primarily comprised of income from our AGCO Finance joint ventures, was approximately $11.2 million for the three months ended March 31, 2020 compared to approximately $10.8 million for the comparable period in 2019, primarily due to higher net earnings from our AGCO Finance joint ventures.
Financial - Earnings
Interest accrues on amounts outstanding...Read more
Revenue - Product
Industry retail sales in Brazil...Read more
Financial - Earnings
Interest accrues on amounts outstanding...Read more
Other - Other
For additional factors and additional...Read more
Revenue - Product
The increase was primarily due...Read more
Other - Other
Accounts receivable and inventories, combined,...Read more
Financial - Earnings
Gross profit as a percentage...Read more
Financial - Shares
During the three months ended...Read more
Financial - Expense
Selling, general and administrative expenses...Read more
Revenue - Product
Regionally, net sales, excluding negative...Read more
Revenue - Product
The factory closures during April...Read more
Financial - Cash Flow
Our normal seasonal requirements for...Read more
Financial - Dividend
While we currently expect to...Read more
Revenue - Product
The COVID-19 pandemic is expected...Read more
Revenue - Product
The increase was primarily a...Read more
Revenue - Product
The decrease was primarily due...Read more
Other - Other
As of March 31, 2020,...Read more
Revenue - Product
Regionally, net sales in North...Read more
Revenue - Product
As a result, our net...Read more
Revenue - Product
Net sales increased during the...Read more
Financial - Earnings
The increase was primarily the...Read more
Revenue - Geography
In Western Europe, industry unit...Read more
Revenue - Geography
In South America, industry unit...Read more
Revenue - Geography
The decrease was primarily due...Read more
Revenue - Product
Industry unit retail sales of...Read more
Revenue - Product
Industry unit retail sales of...Read more
Revenue - Product
Industry unit retail sales of...Read more
Financial - Shares
We have suspended future share...Read more
Other - Other
Proceeds from the borrowings were...Read more
Financial - Expense
Management's Discussion and Analysis of...Read more
Financial - Expense
These losses reflect low levels...Read more
Other - Other
These statements do not relate...Read more
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In our North American region,...Read more
Revenue - Product
Retail sales of low horsepower...Read more
Other - Other
As of March 31, 2020...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Agco Corp De provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: AGCO
CIK: 880266
Form Type: 10-Q Quarterly Report
Accession Number: 0000880266-20-000030
Submitted to the SEC: Fri May 08 2020 11:38:01 AM EST
Accepted by the SEC: Fri May 08 2020
Period: Tuesday, March 31, 2020
Industry: Farm Machinery And Equipment