Valtra - AGCO

Valtra T174 Versu tractor on test

Farmers Weekly — Tue, 17 Dec 2019 18:16:00 GMT

Valtra has made huge progress with its T-series tractors over the past couple of years, so it was no surprise that it ranked so highly in our test.

AGCO’s Smart, Innovative Solutions Honored with 11 Prestigious Awards at Agritechnica 2019

Wed, 13 Nov 2019 17:39:00 GMT

DULUTH, GA, November 13, 2019 – AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and solutions, received 11 major awards at the prestigious Agritechnica 2019 in Hannover, Germany. Due to votes cast by committees of independent experts and by the attendees themselves, AGCO’s smart solutions garnered top awards in many key categories.

“Winning these renowned awards demonstrates that we are dedicated to providing smart solutions for sustainable agriculture,” said Martin Richenhagen, Chairman, President and CEO, AGCO Corporation. “AGCO’s continued investment in research and development enables our brands to develop award-winning innovations, and we are proud that our industry and our customers recognize our commitment.”

AGCO received the following awards:

Tractor of the Year 2020: Fendt 942 Vario
Tractor of the Year 2020 Best Utility: Fendt 314 Profi +
Tractor of the Year 2020 Finalist: Valtra N154e Versu
Tractor of the Year Best Utility Finalist: Valtra A114 HiTech 4
Tractor of the Year Best of Specialized Finalist: Massey Ferguson 3709 Alpine
Machine of the Year High horsepower tractor: Fendt 900 Vario
Machine of the Year Audience Choice Award: Fendt 900 Vario
Machine of the Year Mid class tractor: Massey Ferguson 6700 S
DLG Agritechnica Silver Innovation Awards: Fendt Braun automated vehicle and implement guidance system, Fendt IDEALDrive; Precision Planting SmartDepth.

About AGCO

AGCO (NYSE:AGCO) is a global leader in the design, manufacture and distribution of agricultural solutions and delivers high-tech solutions for farmers feeding the world through its full line of equipment and related services. AGCO products are sold through five core brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®, supported by Fuse® smart farming solutions. Founded in 1990 and headquartered in Duluth, Georgia, USA, AGCO had net sales of $9.4 billion in 2018. For more information, visit http://www.AGCOcorp.com. For company news, information and events, please follow us on Twitter: @AGCOCorp. For financial news on Twitter, please follow the hashtag #AGCOIR.

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AGCO invests in new digital capabilities for a seamless experience for dealers and customers

Sun, 10 Nov 2019 15:00:00 GMT

Innovation is creating new opportunities. Farmers are now increasingly using smart solutions to improve their farm productivity. Farming is evolving digitally, and farmers’ expectations are growing according to these changes. Today more than ever, farmers expect efficient ways to run their business. They want easy, fast and real-time solutions, customized for their needs.

AGCO will continue to exceed farmers’ growing expectations with the contribution of the Digital Customer Experience program (DCX). This business transformation program is developing new ways to offer the best experience for our customers by significantly improving the engagement processes for AGCO and its distribution partners. DCX is leveraging the power of new technologies to create integrated digital platforms to support the digital strategies of AGCO’s core brands.

The DCX program is enhancing the complete customer journey, starting from when customers learn about AGCO’s products and farming solutions through their entire performance life cycle. From their smartphones, tablets and desktops, customers will have new ways to interact with their brand, from the convenience of their home or on the move. They will be able to learn about new solutions available for their farms, configure their machines to suit their requirements, manage their fleet and purchase services and accessories, a breakthrough in the agricultural OEM industry. A new and modern collaborative eCommerce platform will make ordering parts to their preferred dealer even easier.

The new solutions will also ensure a consistent, high-quality and more effective selling process for AGCO’s distribution partners. Together with its dealers, AGCO will be able to continuously improve value propositions to the customers based on analytics. If customers give permissions and consent to access and use their data, dealers will be able to reach new customer segments and offer tailored, relevant solutions to them, identifying immediate needs, and anticipating them throughout the customer journey.

Agritechnica 2019 will be an opportunity for AGCO’s visitors to get a taste of new digital products and services. Successfully presented to the press and dealer network in July, FendtOne will be showed at the exhibition in Hannover. FendtOne is a unique platform that seamlessly connects the office with machines, merges them into a new operating unit, and offers an unprecedented, integrated user experience. The platform will be available for Fendt customers in Germany, France and the UK from March 2020.

Valtra will demonstrate the Customer Portal, an easy to use online platform that allows customers to manage their business seamlessly and access all the information they need to connect with their dealers and brand. Early this year, Valtra has launched this new product for a select set of customers in the UK and will roll it out to the German market after Agritechnica.

Massey Ferguson has recently embraced a new digital approach, to provide an immersive, meaningful and seamless, Zero Distance® Experience to its business partners and customers improving their productivity and close connection with the Massey Ferguson brand. MyMF, the brand-new Customer Portal, is only one of the results of this new journey and will be available in the UK from the first half of 2020, followed by a roll-out in Germany and France.

During the next year, the DCX program team will continue to develop digital solutions for the rest of Europe and Middle East (EME) markets and the other AGCO regions, starting with Asia-Pacific (APA). The creative hub supporting digital operations will continue to be Marktoberdorf, where the team will positively transform the customer journey through the development of the new best-in-class digital ecosystem, bringing new opportunities to AGCO, its core brands, dealers and customers, making business easier, faster and more efficient globally.

About AGCO
AGCO (NYSE:AGCO) is a global leader in the design, manufacture and distribution of agricultural solutions and delivers high-tech solutions for farmers feeding the world through its full line of equipment and related services. AGCO products are sold through five core brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®, supported by Fuse® smart farming solutions. Founded in 1990 and headquartered in Duluth, Georgia, USA, AGCO had net sales of $9.4 billion in 2018. For more information, visit http://www.AGCOcorp.com. For company news, information and events, please follow us on Twitter: @AGCOCorp. For financial news on Twitter, please follow the hashtag #AGCOIR

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AGCO Reports Second Quarter Results

Tue, 30 Jul 2019 11:30:00 GMT

DULUTH, Ga.

Net Income Improvement in Second Quarter

Full Year Earnings Outlook Increased

AGCO, Your Agriculture Company (NYSE: AGCO), a worldwide manufacturer and distributor of agricultural equipment and solutions, reported net sales of approximately $2.4 billion for the second quarter of 2019, a decrease of approximately 4.5% compared to the second quarter of 2018. Reported and adjusted net income was $1.82 per share for the second quarter of 2019. These results compare to a reported net income of $1.14 per share and adjusted net income, excluding restructuring expenses and costs associated with an early retirement of debt, of $1.32 per share for the second quarter of 2018. Excluding unfavorable currency translation impacts of approximately 4.6%, net sales in the second quarter of 2019 increased 0.1% compared to the second quarter of 2018.

Net sales for the first six months of 2019 were approximately $4.4 billion, a decrease of approximately 2.8% compared to the same period in 2018. Excluding unfavorable currency translation impacts of approximately 5.7%, net sales for the first six months of 2019 increased approximately 2.9% compared to the same period in 2018. For the first six months of 2019, reported net income was $2.66 per share, and adjusted net income, excluding restructuring expenses was $2.68 per share. These results compare to reported net income of $1.44 per share and adjusted net income, excluding restructuring expenses and costs associated with an early retirement of debt, of $1.68 per share for the first six months of 2018.

Second Quarter Highlights

Reported regional sales results⁽¹⁾: North America 3.1%, Europe/Middle East (“EME”) (5.7)%, South America (15.4)%, Asia/Pacific/Africa (“APA”) (6.7)%
Constant currency regional sales results⁽¹⁾⁽²⁾: North America 3.6%, EME 0.2%, South America (9.7)%, APA (0.8)%
Operating margin improvement of over 160 basis points vs. second quarter of 2018
Regional operating margin performance: North America 8.3%, EME 14.3%, South America (3.8)%, APA 4.3%
Full-year net sales projection decreased to reflect reduced market outlook
Full-year outlook for net income per share increased
Dividend increased approximately 7% to $0.16 per share, effective second quarter 2019
Repurchases reduced outstanding shares by approximately 0.9 million in the first half of 2019

⁽¹⁾As compared to second quarter 2018.

⁽²⁾Excludes currency translation impact. See reconciliation in appendix.

“Our second quarter results were highlighted by margin expansion across all regions and significant growth in earnings per share,” stated Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer. “Continued progress on our margin initiatives allowed us to overcome increasingly challenging market conditions in our key markets and improve earnings per share on relatively flat revenues. Increased price realization and initiatives aimed at lowering material costs and raising productivity contributed to the improved profitability in the second quarter. While we have lowered our production schedule to align with market demand, we have raised our earnings outlook for the full year to reflect our confidence in our continued strong margin performance.”

Market Update

Industry Unit Retail Sales

Six Months Ended June 30, 2019	Tractors Change from Prior Year Period	Combines Change from Prior Year Period

North America⁽¹⁾	(3)%	(2)%
South America	(11)%	11%
Western Europe⁽²⁾	4%	(17)%
⁽¹⁾Excludes compact tractors. ⁽²⁾Based on Company estimates.

“Wet weather and flooding in the U.S. have delayed planting, curtailed planted acreage and reduced 2019 crop production estimates,” continued Mr. Richenhagen. “Hot, dry conditions across much of Western Europe are also impacting crop production in that region. Increased harvests in Brazil and Argentina should provide some offset to lower production in North America. While negative in the short-term for farm income and farm equipment demand, forecasts for lower crop production and lower ending inventories of grain have moved commodity prices higher, which could be positive for global farm income in the future. Concerns over delayed crop development and lower harvest forecasts negatively impacted North American industry retail sales in the first six months of 2019 compared to the same period in 2018. We expect North American industry retail tractor sales to be relatively flat in 2019 compared to last year. Modestly higher sales of small tractors and hay and forage equipment are expected to offset lower retail sales in the row crop segment compared to last year. Continued warm, dry growing conditions across much of Europe have stressed the development of the winter wheat crop, while milk prices remain supportive of the dairy sector. Industry retail sales in Western Europe increased in the first six months of 2019, following a year of mixed results in 2018 for the arable farming segment. Industry sales growth in France and Germany was partially offset by declines in the United Kingdom and Italy. For the full year of 2019, industry demand in Western Europe is expected to be flat compared to 2018. Industry retail sales in South America decreased during the first six months of 2019. The benefits of improved grain production in Brazil and Argentina were offset by interruptions in the government subsidized finance program in Brazil and weak macro-economic conditions in Argentina. For the full year of 2019, industry demand in South America is expected to be flat compared to 2018. Longer term, we are optimistic about the fundamentals supporting commodity prices and farm income as well as healthy growth in our industry.”

Regional Results

AGCO Regional Net Sales (in millions)

Three Months Ended June 30,	2019		2018		% change from 2018	% change from 2018 due to currency translation⁽¹⁾	% change excluding currency translation

North America	$	618.9	$	600.5	3.1%	(0.6)%	3.6%
South America	185.8		219.6		(15.4)%	(5.7)%	(9.7)%
Europe/Middle East	1,457.2		1,545.2		(5.7)%	(5.9)%	0.2%
Asia/Pacific/Africa	160.7		172.3		(6.7)%	(5.9)%	(0.8)%
Total	$	2,422.6	$	2,537.6	(4.5)%	(4.6)%	0.1%

Six Months Ended June 30,	2019		2018		% change from 2018	% change from 2018 due to currency translation⁽¹⁾	% change excluding currency translation
North America	$	1,115.1	$	1,103.4	1.1%	(0.7)%	1.7%
South America	341.9		401.7		(14.9)%	(8.4)%	(6.5)%
Europe/Middle East	2,667.8		2,708.9		(1.5)%	(7.3)%	5.8%
Asia/Pacific/Africa	293.6		331.1		(11.3)%	(6.3)%	(5.0)%
Total	$	4,418.4	$	4,545.1	(2.8)%	(5.7)%	2.9%
⁽¹⁾ See appendix for additional disclosures

North America

Net sales in the North American region increased 1.7% in the first six months of 2019 compared to the same period of 2018, excluding the negative impact of currency translation. Increased sales of application equipment, as well as high horsepower and compact tractors, were partially offset by lower sales of utility tractors. Income from operations for the first six months of 2019 improved approximately $17.6 million compared to the same period in 2018. The benefit of improved pricing and sales mix contributed most of the increase.

South America

AGCO’s South American net sales decreased 6.5% in the first six months of 2019 compared to the first six months of 2018, excluding the impact of unfavorable currency translation. Income from operations improved approximately $17.7 million in the first half of 2019 compared to the same period in 2018. The South America results in the first six months reflect low levels of industry demand and company production, as well as cost impacts associated with the transition of newer product technology into our Brazilian factories.

Europe/Middle East

Europe/Middle East net sales increased 5.8% in the first six months of 2019 compared to the same period in 2018, excluding unfavorable currency translation impacts. Sales growth was strongest in France, Central Europe and Germany and was partially offset by weaker sales in Scandinavia. Income from operations improved approximately $29.0 million for the first six months of 2019, compared to the same period in 2018, due to the benefit of higher sales and production, pricing and the timing of engineering costs compared to the prior year.

Asia/Pacific/Africa

AGCO’s Asia/Pacific/Africa net sales decreased 5.0%, excluding the negative impact of currency translation, in the first six months of 2019 compared to the same period in 2018. Lower sales in Australia and China were partially offset by sales growth in Africa. Income from operations improved approximately $1.1 million in the first six months of 2019, compared to the same period in 2018, due to improved margins and lower operating expenses.

Outlook

Global industry demand in 2019 is expected to be consistent with 2018 levels. AGCO’s net sales for 2019 are projected to be flat compared to 2018 at approximately $9.4 billion, reflecting positive pricing, higher sales volumes offset by unfavorable foreign currency translation impacts. Gross and operating margins are expected to improve from 2018 levels, reflecting the positive impact of pricing and cost reduction efforts. Based on these assumptions, 2019 earnings per share are targeted at approximately $5.08 on a reported basis, or approximately $5.10 on an adjusted basis, which excludes restructuring expenses.

* * * * *

AGCO will host a conference call with respect to this earnings announcement at 10:00 a.m. Eastern Time on Tuesday, July 30, 2019. The Company will refer to slides on its conference call. Interested persons can access the conference call and slide presentation via AGCO’s website at www.agcocorp.com in the “Events” section on the “Company/Investors” page of our website. A replay of the conference call will be available approximately two hours after the conclusion of the conference call for twelve months following the call. A copy of this press release will be available on AGCO’s website for at least twelve months following the call.

* * * * *

Safe Harbor Statement

Statements that are not historical facts, including the projections of earnings per share, sales, industry demand, market conditions, commodity prices, currency translation, farm income levels, margin levels, investments in product and technology development, new product introductions, restructuring and other cost reduction initiatives, production volumes, tax rates and general economic conditions, are forward-looking and subject to risks that could cause actual results to differ materially from those suggested by the statements. The following are among the factors that could cause actual results to differ materially from the results discussed in or implied by the forward-looking statements.

• Our financial results depend entirely upon the agricultural industry, and factors that adversely affect the agricultural industry generally, including declines in the general economy, adverse weather, tariffs, increases in farm input costs, lower commodity prices, lower farm income and changes in the availability of credit for our retail customers, will adversely affect us.

• A majority of our sales and manufacturing take place outside the United States, and, many of our sales involve products that are manufactured in one country and sold in a different country, and as a result, we are exposed to risks related to foreign laws, taxes and tariffs, trade restrictions, economic conditions, labor supply and relations, political conditions and governmental policies. These risks may delay or reduce our realization of value from our international operations. Among these risks are the uncertain consequences of Brexit, Russian sanctions and tariffs imposed on exports to and imports from China.

• Most retail sales of the products that we manufacture are financed, either by our joint ventures with Rabobank or by a bank or other private lender. Our joint ventures with Rabobank, which are controlled by Rabobank and are dependent upon Rabobank for financing as well, finance 40% to 50% of the retail sales of our tractors and combines in the markets where the joint ventures operate. Any difficulty by Rabobank to continue to provide that financing, or any business decision by Rabobank as the controlling member not to fund the business or particular aspects of it (for example, a particular country or region), would require the joint ventures to find other sources of financing (which may be difficult to obtain), or us to find another source of retail financing for our customers, or our customers would be required to utilize other retail financing providers. As a result of the recent economic downturn, financing for capital equipment purchases generally has become more difficult in certain regions and in some cases, can be expensive to obtain. To the extent that financing is not available or available only at unattractive prices, our sales would be negatively impacted.

• Both AGCO and our finance joint ventures have substantial accounts receivables from dealers and end customers, and we would be adversely impacted if the collectability of these receivables was not consistent with historical experience; this collectability is dependent upon the financial strength of the farm industry, which in turn is dependent upon the general economy and commodity prices, as well as several of the other factors listed in this section.

• We have experienced substantial and sustained volatility with respect to currency exchange rate and interest rate changes, which can adversely affect our reported results of operations and the competitiveness of our products.

• Our success depends on the introduction of new products, particularly engines that comply with emission requirements, which requires substantial expenditures.

• Our production levels and capacity constraints at our facilities, including those resulting from plant expansions and systems upgrades at our manufacturing facilities, could adversely affect our results.

• Our expansion plans in emerging markets, including establishing a greater manufacturing and marketing presence and growing our use of component suppliers, could entail significant risks.

• Our business increasingly is subject to regulations relating to privacy and data protection, and if we violate any of those regulations or otherwise are the victim of a cyber attack, we could incur significant losses and liability.

• We depend on suppliers for components, parts and raw materials for our products, and any failure by our suppliers to provide products as needed, or by us to promptly address supplier issues, will adversely impact our ability to timely and efficiently manufacture and sell products. We also are subject to raw material price fluctuations, which can adversely affect our manufacturing costs.

• We face significant competition, and if we are unable to compete successfully against other agricultural equipment manufacturers, we would lose customers and our net sales and profitability would decline.

• We have a substantial amount of indebtedness, and, as a result, we are subject to certain restrictive covenants and payment obligations that may adversely affect our ability to operate and expand our business.

Further information concerning these and other factors is included in AGCO’s filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2018. AGCO disclaims any obligation to update any forward-looking statements except as required by law.

About AGCO

AGCO (NYSE: AGCO) is a global leader in the design, manufacture and distribution of agricultural solutions and delivers high-tech solutions for farmers feeding the world through its full line of equipment and related services. AGCO products are sold through five core brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®, supported by Fuse® smart farming solutions. Founded in 1990 and headquartered in Duluth, Georgia, USA, AGCO had net sales of $9.4 billion in 2018. For more information, visit http://www.AGCOcorp.com. For company news, information and events, please follow us on Twitter: @AGCOCorp. For financial news on Twitter, please follow the hashtag #AGCOIR.

Please visit our website at www.agcocorp.com

AGCO CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited and in millions)
	June 30, 2019			December 31, 2018
ASSETS
Current Assets:
Cash and cash equivalents	$	279.9		$	326.1
Accounts and notes receivable, net	1,010.7			880.3
Inventories, net	2,424.8			1,908.7
Other current assets	446.2			422.3
Total current assets	4,161.6			3,537.4
Property, plant and equipment, net	1,377.8			1,373.1
Right-of-use lease assets	203.3			—
Investment in affiliates	404.7			400.0
Deferred tax assets	97.5			104.9
Other assets	134.6			142.4
Intangible assets, net	541.6			573.1
Goodwill	1,494.0			1,495.5
Total assets	$	8,415.1		$	7,626.4

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current portion of long-term debt	$	70.2		$	72.6
Short-term borrowings	238.7			138.0
Senior term loan	227.7			—
Accounts payable	931.4			865.9
Accrued expenses	1,557.2			1,522.4
Other current liabilities	203.7			167.8
Total current liabilities	3,228.9			2,766.7
Long-term debt, less current portion and debt issuance costs	1,308.1			1,275.3
Operating lease liabilities	163.3			—
Pensions and postretirement health care benefits	212.0			223.2
Deferred tax liabilities	107.8			116.3
Other noncurrent liabilities	266.3			251.4
Total liabilities	5,286.4			4,632.9

Stockholders’ Equity:
AGCO Corporation stockholders’ equity:
Common stock	0.8			0.8
Additional paid-in capital	7.1			10.2
Retained earnings	4,591.1			4,477.3
Accumulated other comprehensive loss	(1,534.3		)	(1,555.4		)
Total AGCO Corporation stockholders’ equity	3,064.7			2,932.9
Noncontrolling interests	64.0			60.6
Total stockholders’ equity	3,128.7			2,993.5
Total liabilities and stockholders’ equity	$	8,415.1		$	7,626.4


See accompanying notes to condensed consolidated financial statements.

AGCO CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in millions, except per share data)
	Three Months Ended June 30,
	2019		2018
Net sales	$	2,422.6	$	2,537.6
Cost of goods sold	1,858.7		1,981.3
Gross profit	563.9		556.3
Selling, general and administrative expenses	260.7		271.8
Engineering expenses	87.5		93.0
Restructuring expenses	—		2.7
Amortization of intangibles	15.4		18.2
Bad debt expense	0.7		2.5
Income from operations	199.6		168.1
Interest expense, net	6.0		21.2
Other expense, net	11.6		27.2
Income before income taxes and equity in net earnings of affiliates	182.0		119.7
Income tax provision	53.2		38.5
Income before equity in net earnings of affiliates	128.8		81.2
Equity in net earnings of affiliates	11.6		9.2
Net income	140.4		90.4
Net loss attributable to noncontrolling interests	0.4		1.0
Net income attributable to AGCO Corporation and subsidiaries	$	140.8	$	91.4
Net income per common share attributable to AGCO Corporation and subsidiaries:
Basic	$	1.84	$	1.15
Diluted	$	1.82	$	1.14
Cash dividends declared and paid per common share	$	0.16	$	0.15
Weighted average number of common and common equivalent shares outstanding:
Basic	76.6		79.3
Diluted	77.2		80.2


See accompanying notes to condensed consolidated financial statements.

AGCO CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in millions, except per share data)
	Six Months Ended June 30,
	2019			2018
Net sales	$	4,418.4		$	4,545.1
Cost of goods sold	3,397.8			3,560.8
Gross profit	1,020.6			984.3
Selling, general and administrative expenses	522.9			536.4
Engineering expenses	172.0			183.9
Restructuring expenses	1.7			8.6
Amortization of intangibles	30.7			33.9
Bad debt expense	1.3			2.9
Income from operations	292.0			218.6
Interest expense, net	9.5			31.5
Other expense, net	26.2			38.7
Income before income taxes and equity in net earnings of affiliates	256.3			148.4
Income tax provision	72.6			49.9
Income before equity in net earnings of affiliates	183.7			98.5
Equity in net earnings of affiliates	22.4			16.9
Net income	206.1			115.4
Net (income) loss attributable to noncontrolling interests	(0.2		)	0.3
Net income attributable to AGCO Corporation and subsidiaries	$	205.9		$	115.7
Net income per common share attributable to AGCO Corporation and subsidiaries:
Basic	$	2.69		$	1.46
Diluted	$	2.66		$	1.44
Cash dividends declared and paid per common share	$	0.31		$	0.30
Weighted average number of common and common equivalent shares outstanding:
Basic	76.6			79.4
Diluted	77.3			80.3


See accompanying notes to condensed consolidated financial statements.

AGCO CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in millions)
	Six Months Ended June 30,
	2019			2018
Cash flows from operating activities:
Net income	$	206.1		$	115.4
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	107.1			115.1
Amortization of intangibles	30.7			33.9
Stock compensation expense	24.8			22.5
Equity in net earnings of affiliates, net of cash received	(16.8		)	(13.4		)
Deferred income tax benefit	13.2			(14.3		)
Loss on extinguishment of debt	—			15.7
Other	3.0			1.3
Changes in operating assets and liabilities:
Accounts and notes receivable, net	(143.5		)	(83.0		)
Inventories, net	(513.7		)	(396.3		)
Other current and noncurrent assets	(18.2		)	(47.3		)
Accounts payable	83.1			7.9
Accrued expenses	1.6			6.7
Other current and noncurrent liabilities	9.7			47.2
Total adjustments	(419.0		)	(304.0		)
Net cash used in operating activities	(212.9		)	(188.6		)
Cash flows from investing activities:
Purchases of property, plant and equipment	(114.9		)	(89.8		)
Proceeds from sale of property, plant and equipment	0.1			2.3
Investment in unconsolidated affiliates	—			(5.8		)
Other	—			0.4
Net cash used in investing activities	(114.8		)	(92.9		)
Cash flows from financing activities:
Proceeds from indebtedness, net	402.5			266.4
Purchases and retirement of common stock	(70.0		)	(34.3		)
Payment of dividends to stockholders	(23.7		)	(23.8		)
Payment of minimum tax withholdings on stock compensation	(26.7		)	(3.5		)
Payment of debt issuance costs	(0.5		)	—
Investment by noncontrolling interests	1.0			—
Net cash provided by financing activities	282.6			204.8
Effects of exchange rate changes on cash and cash equivalents	(1.1		)	(10.4		)
Decrease in cash and cash equivalents	(46.2		)	(87.1		)
Cash and cash equivalents, beginning of period	326.1			367.7
Cash and cash equivalents, end of period	$	279.9		$	280.6


See accompanying notes to condensed consolidated financial statements.

AGCO CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions, except share amounts, per share data and employees)

1. STOCK COMPENSATION EXPENSE

The Company recorded stock compensation expense as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Cost of goods sold	$	0.5	$	1.1	$	1.0	$	1.9
Selling, general and administrative expenses	12.2		12.5		24.2		20.9
Total stock compensation expense	$	12.7	$	13.6	$	25.2	$	22.8

2. RESTRUCTURING EXPENSES

From 2014 through 2019, the Company announced and initiated several actions to rationalize employee headcount at various manufacturing facilities and administrative offices located in Europe, Africa, South America, China and the United States in order to reduce costs in response to softening global market demand and lower production volumes. The aggregate headcount reduction was approximately 3,890 employees between 2014 and 2018. The Company had approximately $7.1 million of severance and related costs accrued as of December 31, 2018. During the six months ended June 30, 2019, the Company recorded an additional $1.7 million of severance and related costs associated with further rationalizations associated with the termination of approximately 40 employees, and paid approximately $3.4 million of severance and associated costs. The $1.7 million of costs incurred during the six months ended June 30, 2019 included a $0.3 million write-down of property, plant and equipment. The remaining $5.0 million of accrued severance and other related costs as of June 30, 2019, inclusive of approximately $0.1 million of negative foreign currency translation impacts, are expected to be paid primarily during 2019.

3. INDEBTEDNESS

Long-term debt at June 30, 2019 and December 31, 2018 consisted of the following:

	June 30, 2019			December 31, 2018
1.056% Senior term loan due 2020	$	227.7		$	228.7
Senior term loan due 2022	170.7			171.5
Credit facility, expires 2023	96.8			114.4
1.002% Senior term loan due 2025	284.6			—
Senior term loans due between 2019 and 2028	811.6			815.3
Other long-term debt	17.3			20.6
Debt issuance costs	(2.7		)	(2.6		)
	1,606.0			1,347.9
Less: 1.056% Senior term loan due 2020	(227.7		)	—
Senior term loans due 2019	(63.7		)	(63.8		)
Current portion of other long-term debt	(6.5		)	(8.8		)
Total long-debt, less current portion and debt issuance costs	$	1,308.1		$	1,275.3

As of June 30, 2019 and December 31, 2018, the Company had short-term borrowings due within one year of approximately $238.7 million and $138.0 million, respectively.

4. INVENTORIES

Inventories at June 30, 2019 and December 31, 2018 were as follows:

	June 30, 2019		December 31, 2018
Finished goods	$	925.2	$	660.4
Repair and replacement parts	640.9		587.3
Work in process	311.4		217.5
Raw materials	547.3		443.5
Inventories, net	$	2,424.8	$	1,908.7

5. ACCOUNTS RECEIVABLE SALES AGREEMENTS

The Company has accounts receivable sales agreements that permit the sale, on an ongoing basis, of a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures. As of June 30, 2019 and December 31, 2018, the cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements was approximately $1.5 billion and $1.4 billion, respectively.

Losses on sales of receivables associated with the accounts receivable financing facilities discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $11.0 million and $19.7 million, respectively, during the three and six months ended June 30, 2019. Losses on sales of receivables associated with the accounts receivable financing facilities discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $9.7 million and $17.5 million, respectively, during the three and six months ended June 30, 2018.

The Company’s finance joint ventures in Europe, Brazil and Australia also provide wholesale financing directly to the Company’s dealers. As of June 30, 2019 and December 31, 2018, these finance joint ventures had approximately $91.4 million and $82.5 million, respectively, of outstanding accounts receivable associated with these arrangements. In addition, the Company sells certain trade receivables under factoring arrangements to other financial institutions around the world.

6. NET INCOME PER SHARE

A reconciliation of net income attributable to AGCO Corporation and subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share for the three and six months ended June 30, 2019 and 2018 is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Basic net income per share:
Net income attributable to AGCO Corporation and subsidiaries	$	140.8	$	91.4	$	205.9	$	115.7
Weighted average number of common shares outstanding	76.6		79.3		76.6		79.4
Basic net income per share attributable to AGCO Corporation and subsidiaries	$	1.84	$	1.15	$	2.69	$	1.46
Diluted net income per share:
Net income attributable to AGCO Corporation and subsidiaries	$	140.8	$	91.4	$	205.9	$	115.7
Weighted average number of common shares outstanding	76.6		79.3		76.6		79.4
Dilutive stock-settled appreciation rights, performance share awards and restricted stock units	0.6		0.9		0.7		0.9
Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share	77.2		80.2		77.3		80.3
Diluted net income per share attributable to AGCO Corporation and subsidiaries	$	1.82	$	1.14	$	2.66	$	1.44

7. SEGMENT REPORTING

The Company’s four reportable segments distribute a full range of agricultural equipment and related replacement parts. The Company evaluates segment performance primarily based on income from operations. Sales for each segment are based on the location of the third-party customer. The Company’s selling, general and administrative expenses and engineering expenses are charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income from operations for one segment may not be comparable to another segment. Segment results for the three and six months ended June 30, 2019 and 2018 are as follows:

Three Months Ended June 30,	North America		South America			Europe/ Middle East		Asia/ Pacific/Africa		Consolidated
2019
Net sales	$	618.9	$	185.8		$	1,457.2	$	160.7	$	2,422.6
Income (loss) from operations	51.4		(7.1		)	208.8		7.0		260.1

2018
Net sales	$	600.5	$	219.6		$	1,545.2	$	172.3	$	2,537.6
Income (loss) from operations	37.6		(16.7		)	208.5		4.6		234.0

Six Months Ended June 30,	North America		South America			Europe/ Middle East		Asia/ Pacific/Africa		Consolidated
2019
Net sales	$	1,115.1	$	341.9		$	2,667.8	$	293.6	$	4,418.4
Income (loss) from operations	82.0		(15.6		)	336.5		10.4		413.3

2018
Net sales	$	1,103.4	$	401.7		$	2,708.9	$	331.1	$	4,545.1
Income (loss) from operations	64.4		(33.3		)	307.5		9.3		347.9

A reconciliation from the segment information to the consolidated balances for income from operations is set forth below:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Segment income from operations	$	260.1		$	234.0		$	413.3		$	347.9
Corporate expenses	(32.9		)	(32.5		)	(64.7		)	(65.9		)
Stock compensation expense	(12.2		)	(12.5		)	(24.2		)	(20.9		)
Restructuring expenses	—			(2.7		)	(1.7		)	(8.6		)
Amortization of intangibles	(15.4		)	(18.2		)	(30.7		)	(33.9		)
Consolidated income from operations	$	199.6		$	168.1		$	292.0		$	218.6

RECONCILIATION OF NON-GAAP MEASURES

This earnings release discloses adjusted income from operations, adjusted net income and adjusted net income per share, each of which exclude amounts that are typically included in the most directly comparable measure calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). A reconciliation of each of those measures to the most directly comparable GAAP measure is included below.

The following is a reconciliation of reported income from operations, net income and net income per share to adjusted income from operations, net income and net income per share for the three and six months ended June 30, 2019 and 2018 (in millions, except per share data):

	Three Months Ended June 30,
	2019						2018
	Income From Operations		Net Income⁽¹⁾		Net Income Per Share⁽¹⁾		Income From Operations		Net Income⁽¹⁾		Net Income Per Share⁽¹⁾
As reported	$	199.6	$	140.8	$	1.82	$	168.1	$	91.4	$	1.14
Restructuring expenses⁽²⁾	—		—		—		2.7		2.0		0.02
Extinguishment of debt ⁽³⁾	—		—		—		—		12.7		0.16
As adjusted	$	199.6	$	140.8	$	1.82	$	170.8	$	106.1	$	1.32

⁽¹⁾	Net income and net income per share amounts are after tax.
⁽²⁾	The restructuring expenses recorded during the three months ended June 30, 2018 related primarily to severance costs associated with the Company’s rationalization of certain U.S., European and South American manufacturing operations and various administrative offices.
⁽³⁾	The Company repurchased approximately $185.9 million of its outstanding 5 7/8% senior notes during the three months ended June 30, 2018. The repurchase resulted in a loss on extinguishment of debt of approximately $15.7 million, including associated fees, offset by approximately $3.0 million of accelerated amortization of the deferred gain related to a terminated interest rate swap instrument associated with the senior notes.

	Six Months Ended June 30,
	2019						2018
	Income From Operations		Net Income⁽¹⁾		Net Income Per Share⁽¹⁾		Income From Operations		Net Income⁽¹⁾		Net Income Per Share⁽¹⁾
As reported	$	292.0	$	205.9	$	2.66	$	218.6	$	115.7	$	1.44
Restructuring expenses⁽²⁾	1.7		1.2		0.02		8.6		6.2		0.08
Extinguishment of debt⁽³⁾	—		—		—		—		12.7		0.16
As adjusted	$	293.7	$	207.1	$	2.68	$	227.2	$	134.6	$	1.68

⁽¹⁾Net income and net income per share amounts are after tax.

⁽²⁾The restructuring expenses recorded during the six months ended June 30, 2019 and 2018 related primarily to severance costs associated with the Company’s rationalization of certain African, U.S., European and South American manufacturing operations and various administrative offices.

⁽³⁾The Company repurchased approximately $185.9 million of its outstanding 5 7/8% senior notes during the three months ended June 30, 2018. The repurchase resulted in a loss on extinguishment of debt of approximately $15.7 million, including associated fees, offset by approximately $3.0 million of accelerated amortization of the deferred gain related to a terminated interest rate swap instrument associated with the senior notes.

The following is a reconciliation of targeted net income per share to adjusted targeted net income per share for the year ended December 31, 2019:

	Net Income Per Share⁽¹⁾
As targeted	$	5.08
Restructuring expenses	0.02
As adjusted targeted⁽²⁾	$	5.10

⁽¹⁾Net income per share amount is after tax.

⁽²⁾The above reconciliation reflects adjustments to full year 2019 targeted net income per share based upon restructuring expenses and other adjustments incurred during the six months ended June 30, 2019. Full year restructuring expenses could differ based on future restructuring activity.

The following tables set forth, for the three and six months ended June 30, 2019 and 2018, the impact to net sales of currency translation by geographical segment (in millions, except percentages):

	Three Months Ended June 30,						Change due to currency translation
	2019		2018		% change from 2018		$			%
North America	$	618.9	$	600.5	3.1	%	$	(3.4	)	(0.6	)%
South America	185.8		219.6		(15.4	)%	(12.6		)	(5.7	)%
Europe/Middle East	1,457.2		1,545.2		(5.7	)%	(91.0		)	(5.9	)%
Asia/Pacific/Africa	160.7		172.3		(6.7	)%	(10.2		)	(5.9	)%
	$	2,422.6	$	2,537.6	(4.5	)%	$	(117.2	)	(4.6	)%

	Six Months Ended June 30,						Change due to currency translation
	2019		2018		% change from 2018		$			%
North America	$	1,115.1	$	1,103.4	1.1	%	$	(7.2	)	(0.7	)%
South America	341.9		401.7		(14.9	)%	(33.8		)	(8.4	)%
Europe/Middle East	2,667.8		2,708.9		(1.5	)%	(197.3		)	(7.3	)%
Asia/Pacific/Africa	293.6		331.1		(11.3	)%	(20.8		)	(6.3	)%
	$	4,418.4	$	4,545.1	(2.8	)%	$	(259.1	)	(5.7	)%

View source version on businesswire.com: https://www.businesswire.com/news/home/20190730005559/en/

Greg Peterson
Vice President, Investor Relations
770-232-8229
greg.peterson@agcocorp.com

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Valtra Breaks Barriers and Promotes Social Inclusion in Brazil During the Agrishow 2019

Thu, 23 May 2019 13:28:00 GMT

Ribeirão Preto - Valtra, a global leader in the manufacture of agricultural machinery, broke down barriers and brought social inclusion to its booth at Agrishow 2019, integrating people with Down Syndrome into its team of receptionists in the event.

With great skill and charisma, Eduardo Bertti, 35, and Lucas Bandolfo, 26, captivated visitors to Valtra’s booth at Agrishow, delivering gifts and company materials.

Lucas Bandolfo is part of Valtra’s team of receptionists at Agrishow 2019

Valtra, one of parent company AGCO’s core brands, is committed to diversity and inclusion as part of the TRAIT initiative. TRAIT represents AGCO’s core values: Team spirit, Respect, Accountability, Integrity and Transparency. This initiative has four focus areas: human capital, community, market and suppliers.

"TRAIT is how we embrace the perspectives and thoughts of each individual, of every reality, to build a successful business. The experience of being a global company points out that diversity promotes creativity and innovation," says Sheila Fonseca, Director of Human Resources at ACGO South America.

Eduardo Bertti (center) worked throughout the week at Agrishow

Rita Chichitoste, casting producer of First Models, AGCO's supplier at Agrishow, highlights the importance of representation for the disability community and their families: "It is very gratifying to see the transformational power of this inclusion, whether it is in our team in the event or in their families. Everything gets brighter. It's amazing how much we've learned from them. They are able to do everything that we do, and they do everything with so much love. There are limitations, but we all have some sort of limitation, so in the day-to-day work this is not important".

ADEVIRP's choral and social action kicked off Valtra’s booth at Agrishow

Valtra partnered with non-profit organization ADEVIRP (Association of the Visually Impaired in Ribeirão Preto and Region). On the first day of Agrishow, the ADEVIRP chorus, consisting of 35 visually impaired singers, performed at Valtra’s booth to mark the opening of the event. Valtra then made a donation of 1 ton of food to ADEVIRP.

ADEVIRP utilizes specially adapted tools and equipment for its visually impaired clients to use for educational and personal development. "The choir’s presentation is another demonstration of AGCO’s and Valtra’s commitment with diversity and inclusion", says João Carramate, Valtra’s Sales Director.

Lucas Bandolfo (center) worked throughout the week at Agrishow

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Autonomous Snow Removal Project

Tue, 14 May 2019 12:57:00 GMT

Robotic vacuum cleaners and lawnmowers are already reality, but can the same idea be applied to a 7-ton machine clearing an airstrip from snow? To show it can, Valtra and Nokian Tyres partnered up with three other Finnish companies in March 2019 for a joint proof-of-concept project at the European Union’s northernmost airport. Two Valtra T254 Versu equipped with Nokian Hakkapeliitta TRI tires and each pulling a 4.5 m wide sweeper blower autonomously cleared the runway at Ivalo airport in Finnish Lapland.

The background
Winters in Finland can be very long, with many parts of the country covered permanently in snow for 150 and up to 200 days a year. ”As an airport operator we need to create summer conditions on Finnish runways even if it’s the middle of the winter. To meet this challenge we are constantly searching for new solutions that support our world-class snow-how”, says Henri Hansson, Technical Director of Finavia, the organisation responsible for maintaining the majority of Finnish airports.

This is how the idea for the project “Runway Snowbot” was born between a group of Finnish top experts, each specialists in their own field, and each with a deep understanding of Nordic climatic conditions: Valtra, Nokian Tyres, airport sweeper blower manufacturer Vammas (Fortbrand), the world’s most sustainable energy company Neste and Finavia.

Towards more sustainable runway maintenance
“Runway Snowbot is a proof of concept, showing that by combining the know-how of five Finnish companies, airport runways can be cleared in a new way – more safely, more sustainably, more economically and more comfortably”, says Matti Tiitinen, Senior Brand Business Manager, Valtra Scandinavia, Baltics & Western and Central Europe.

Tractor specialist Valtra has been working on auto-guided tractors for several years. Together with Nokian Tyres, both brands set the speed record for unmanned snow-ploughing in 2018 with an autonomous T254 Versu equipped with Nokian Hakkapeliitta TRI tires. For project “Runway Snowbot” Valtra SmartTouch features such as auto-guidance with centimetre-level precision, Isobus implement control provided the technology needed for the controlled clearing of pre-defined routes.

With Nokian Hakkapeliitta TRI tires, the world’s first tractor winter tire, the autonomous snow-clearing project has got the grip and accuracy needed for safe driverless tractor operation – while also being gentle to the tarmac. “Without the driver carrying out instinctive corrections for steering and throttle, the tires must offer very predictable handling”, says Toni Silfverberg, Head of Sales and Marketing, Nokian Heavy Tyres Ltd. “What’s more, the operation without studs, the low rolling resistance of Nokian Hakkapeliitta TRI and our sustainable manufacturing process all add to the overall economy and sustainability.”

Both the Valtra and the Vammas sweeper blower were fuelled with Neste MY Renewable Diesel which reduces greenhouse gas emissions approximately 90% compared to fossil diesel.

The results
The tests carried out in the winter 2018–2019 proved to be successful for all participating parties. Although not yet quite ready for commercial implementation, the project paves the way for new way of thinking.

“Tractors are an interesting alternative for airport fleets where working widths of 4.5 meters are sufficient. Tractors are considerably less expensive in total cost of ownership than trucks and much more versatile as they can be used for other tasks such as snow-blowing or mowing during the summertime”, comments Tero Santamanner, Finavia Machine Equipment Specialist.

“Project Runway Snowbot was the second project on autonomous operation and seamless play between Valtra tractors and Nokian Tyres”, comment Matti Tiitinen and Toni Silfverberg. “The future will bring more and more autonomous applications, and we are ready for the new demands they bring.”

More information
Project website, photos and videos:
www.runwaysnowbot.com

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Valtra wins 'Machine of the Year' award at SIMA 2019

Mon, 25 Feb 2019 14:14:00 GMT

The Valtra A104 HiTech has won the prestigious ´Machine of the Year´ award in the category of tractors under 150 hp at the SIMA Show 2019 in Paris.

"Agribusiness will boost the recovery of the Brazilian economy in 2019", says AGCO’s global CEO

Tue, 06 Nov 2018 20:44:00 GMT

São Paulo (Nov. 6, 2018) - Global Chairman, President and CEO of AGCO, a leading company in the design, manufacture and distribution of agricultural machinery and solutions, Martin Richenhagen, has reassured his level of confidence in the South America’s agricultural scenario. The CEO visits Brazil this week. With global sales 12% higher in comparison to 2017, boosted by good crop yields in the region, AGCO’s CEO predicts that 2019 will be a year of consistent growth.

"We are optimistic about the agricultural scenario in South America, especially in Brazil. Even with the uncertainties in the Brazilian economy and politics, we managed to achieve positive figures and grow in relation to the previous year. Expectations for the coming years are the best possible, so we have invested both in renewing our brands portfolio and in high-technology factories in the region, consolidating AGCO in the era of Industry 4.0", says Richenhagen.

In addition to the expected new record in soybean crops in Brazil, the most recent survey on farmers’ habits, promoted by the Brazilian Association of Farming Marketing and Agribusiness (ABMRA), pointed out that 34.14% of farmers intend to purchase new machinery next year. The trade dispute between the USA and China should also favor the export of equipment produced in Brazil.

To meet this demand and the technological evolution of agricultural machinery, AGCO should complete in 2019 the process of renewing 100% of its portfolio. This process started in 2017. This is the biggest transformation of product portfolio throughout the company's history, with 159 new machines. Among the new products are the Massey Ferguson MF 4700 and MF 5700 tractors, which are developments of the country's best-known and best-selling tractor family, the MF 4200.

In 2018, AGCO invested R$ 112 million, of which R$ 60 million was only for the modernization and application of new technologies in the company's plant in Santa Rosa (RS), and quadrupled the training time of the company's employees to strengthen the concept of "Smart Factory" in its assembly lines. According to a study conducted by the Brazilian Industry Association in 2017, only 1.6% of the companies surveyed work with this concept.

"In addition to all the financial investments we’ve made in our factories, we are also world pioneers in using technologies such as Glass to manufacture our products. We are ready to meet the needs of the South American farmers, our main partners in our mission to feed the world”, says Luís Felli, President of AGCO South America.

Brazil leads the exports of items such as soy, coffee, sugar, and beef and chicken. Even so, the country has about 219 million hectares of land free for agribusiness. This, combined with a favorable climate and the availability of water and fertile land, places Brazil as one of the countries with the greatest potential to meet the growing demands for food on the planet.

Richenhagen has also introduced product launches and strategies from the group's leading brands - such as Massey Ferguson, Valtra, Challenger and GSI - along with AGCO Americas Senior Vice President and General Manager, Bob Crain, AGCO’s President for South America, Luís Felli, and AGCO's Global Head of Communications, Ulrich Stockheim.

High Technology and Precision Farming

Among the new AGCO products, the folding planter Momentum and the combine harvester IDEAL stand out. Momentum reaches the Brazilian market with Precision Planting technology, which improves seed distribution in the field. The product counts with 24, 30 and 40-row versions. In addition, the planter is 18 meters wide when open, which increases the planting speed, and 3.6 meters when closed, to facilitate transportation. Seed storage is also an advantage, with a capacity of up to 5,130 liters.

IDEAL is AGCO's new line of-high performance axial combines. The main advantage of this new product is an intelligent processing system that preserves grain quality and offers better handling, energy efficiency and capacity in a wide range of soil conditions. The IDEAL combine features the latest technology innovations in Precision Farming, offering connected services such as field data and information management.

"The IDEAL combine is the result of many years of research and development, countless hours of engineering, teamwork and industry-leading experience", says AGCO’s President and CEO. "It is another outcome of AGCO's tireless efforts to deliver innovative solutions to the world's farmers", he adds.

About AGCO

AGCO (NYSE: AGCO) is a global leader in the design, manufacture and distribution of agriculture equipment and solutions and supports more productive farming through its full line of equipment and related services. AGCO products are sold through five core brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®, supported by Fuse® precision technologies and farm optimization services. Founded in 1990, AGCO is headquartered in Duluth, GA, USA. In 2017, AGCO had net sales of $8.3 billion. For more information, visit http://www.AGCOcorp.com. For company news, information and events, please follow us on Twitter: @AGCOCorp. For financial news on Twitter, please follow the hashtag #AGCOIR.

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AGCO Appoints Eric Hansotia Chief Operating Officer

Fri, 26 Oct 2018 12:35:00 GMT

AGCO Corporation (NYSE: AGCO), a world-leading manufacturer and distributor of agricultural equipment and solutions, announced today that Eric Hansotia, Senior Vice President, Global Crop Cycle and Fuse Connected Services, has been appointed Chief Operating Officer, a new position within AGCO. Effective January 1, 2019, Mr. Hansotia will assume responsibility for all of AGCO’s regional commercial operations as well as its global product management, engineering, manufacturing and supply chain functions. He will continue to report to Martin Richenhagen, Chairman, President, and CEO of AGCO.

“Eric’s leadership and broad industry knowledge make him uniquely qualified for this important new position,” said Mr. Richenhagen. “He has made significant contributions to AGCO’s success over the past five years particularly in the areas of our precision agriculture and harvesting product offerings. His strong strategic view on the future trends in global agriculture along with his operational experience will ensure AGCO continues to be successful in meeting the changing needs of our customers. I look forward to working closely with Eric on our initiatives to achieve growth and improved returns.”

Mr. Hansotia has extensive experience in the agricultural equipment industry in the areas of engineering, quality, advanced technology, manufacturing, product management, and global business leadership. Prior to joining AGCO in 2013, Mr. Hansotia had a successful 20-year tenure with Deere & Company where he held a number of leadership positions including Senior Vice President, Global Harvesting and Vice President of Global Crop Care.

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AGCO Plant in Santa Rosa Receives Investment in Technological Modernization

AGCO South America — Thu, 27 Sep 2018 16:05:00 GMT

Santa Rosa (RS), September 27, 2018 - AGCO, a global leader in the design, manufacture and distribution of agricultural machinery and solutions, has allocated a contribution of R$ 60 million for the modernization and application of new technologies at the company's plant in Santa Rosa (RS), which is responsible for the production of harvesters, combines and headers of Massey Ferguson, Valtra and Challenger brands. The investment plan began in 2016 and integrates the company's strategy of preparing the plant for the launch of products with high on-board technology, as well as increasing the level of reliability by delivering to the farmer machines with the highest quality standards.

Among the improvements made in the plant is Dyno, a new system that simulates the quality level of combines in operation in the field, before they are delivered to the farmer. The modernization of the whole assembly line is another novelty and can be seen, for example, through the automation systems of welding, a new area of painting with industrial equipment based on nanotechnology, as well as technological procedures for quality measurement.

"AGCO's strategy is to make the plant a center of excellence, with an increasingly intelligent and robust operation that is suitable to receive the production of machines with high technology incorporated. Increasing the productivity level of the plant is another goal to be achieved with these investments. Our expectation for the next two years is to increase factory production by 100%,” says Denis Dutra de Oliveira, Director of Operations at AGCO.
To implement the industry 4.0, AGCO quadrupled the training time to employees. Called "Learn Factory," the initiative aims to increase the knowledge of professionals in the technological and electronic field through workshops and the help of a platform with a virtual simulator, so that employees are more familiar with digital interfaces.

The Santa Rosa plant is responsible for manufacturing all Massey Ferguson and Valtra harvesters, combines and headers. This year, the two brands launched the 45-foot draper header. At Massey Ferguson, the new 9255 Dynaflex is ideal for the axial model MF 9895, class 8. For Valtra, the 645FD header was designed exclusively to equip the BC8800 combine.

Massey Ferguson 360º
From September 25th to 28th, the Santa Rosa factory will receive the Massey Ferguson 360° special action with the objective of providing a differentiated sensory experience to customers and presenting the innovations implemented in the area in the last years.

At the event, which had the first edition at the plant in Canoas (RS), the public of about 300 people will have the opportunity to see closely the six models of combines and all headers of the brand, including the launch of the year, 45 ft 9255 Dynaflex. A test drive of a hybrid combine will be another attraction in which the farmer can check and test the advantages of the machine.

Participants will still be able to experience two combine simulations: Dyno technology, a new combine quality test system, and a second 4D format crop simulator experience in which the visitor will enter a booth, wear augmented reality glasses and have the sensation of operating a machine during a harvest.

About AGCO
AGCO (NYSE: AGCO) is a world leader in the design, manufacture and distribution of agricultural solutions and supports productive agriculture through a full line of equipment and related services. AGCO products are sold through five major brands: Challenger®, Fendt®, GSI®, Massey Ferguson®, and Valtra®, count with the support of Precision Technology Fuse® and agricultural optimization services. Founded in 1990, AGCO is headquartered in Duluth, GA (EUA). In 2017, AGCO had net sales revenue of US$ 8.3 billion. For more information, visit http://www.AGCOcorp.com. For company news, information and news about events, follow us on Twitter: @AGCOCorp. For financial information on Twitter, follow hashtag #AGCOIR.

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AGRAVIS Technik Polska is taking over the distribution of Fendt and Valtra in northwest Poland

Wed, 22 Aug 2018 13:45:00 GMT

Hanover/Münster/Marktoberdorf, August 22 2018. After successfully working together in North Rhine-Westphalia, Saxony-Anhalt, Lower Saxony and Brandenburg for many years, the AGRAVIS Raiffeisen AG and AGCO will extend their collaboration to a large distribution area in northwest Poland.

AGCO Brands Win Red Dot Design Award 2018

OEM Off-Highway — Mon, 09 Apr 2018 13:00:00 GMT

AGCO's IDEAL combine and Valtra A4 Series tractors were both recognized for outstanding design.

AGCO's Brands Win Red Dot Design Award 2018

Mon, 09 Apr 2018 07:00:00 GMT

IDEAL Combine and Valtra A4 Series Tractors Recognized for Outstanding Design

AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and solutions, has been awarded two Red Dot Design Awards for its IDEAL Combine and the Valtra A4 Series Tractors. The Red Dot Design competition is one of the largest and most respected design competitions in the world. More than 6,300 submissions from 59 countries entered this year's contest and were evaluated by a jury consisting of 40 independent design experts from around the globe.

The purpose-built and durable Valtra A4 Series with a modern styling is truly a versatile tool designed to boost the efficiency of farmers, contractors and municipalities alike. (Photo: Business Wire)

“We are very honored to receive the Red Dot Design Award,” said Martin Richenhagen, Chairman, President & CEO, AGCO Corporation. “This recognition underlines our commitment to design, innovation and quality.”

The IDEAL combine and the Valtra A4 Series were both recognized in the category ‘Commercial Vehicles.’ IDEAL is a newly developed combine that unites brand-new designs and cutting-edge technologies to empower farmers across the world to be more productive and to feed a growing world population. The jury recognized this new generation of combine harvesters with a ‘Red Dot: Best of the Best’ Award for top design quality and ground-breaking design acknowledging IDEAL’s innovative features and its unique, elegant graphite livery. IDEAL’s benefits include ease of use and optimization of complex harvesting operations. It provides the efficiency, visibility and the comfort farmers need on the field. It is also the first high capacity combine with a narrow body. What is more, IDEAL offers full connectivity, a complete and automated adjustment, and real-time crop flow visualization.

Valtra’s 4^th generation A Series is a completely newly designed tractor featuring a new technical design, a brand-new cab design and multiple chassis options. The new A Series also offers farmers further customization options to tailor to their specific needs and wishes. The Red Dot Design Award recognizes the high-design quality of the A4 Series tractor. Valtra has been inspired by the basic principles of Scandinavian design which is reflected in the clear lines of the exterior of its tractors. In addition, Valtra’s design work puts a strong emphasis on usability, ergonomics, safety, durability, serviceability and productivity of the tractor. This is not the first time for Valtra to be recognized at the Red Dot Design Awards: the successful AGCO brand was already recognized for its designs in 2016 and in 2017.

Martin Richenhagen continued, “AGCO’s strong research and development backbone enables our global brands to create new designs, functions and concepts that appeal to our global customer base. Winning the Red Dot Design Awards highlights AGCO’s commitment to be at the forefront of innovation. High-tech solutions like IDEAL and the Valtra A4 Series are shaping the future of agriculture.”

The Red Dot Design Competition was launched in the 1950s and awards are given in three categories: Product Design, Communication Design and Design Concept. This year's Red Dot Design Award will be presented on July 9 at the Aalto Theatre in Essen, Germany.

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Red Dot 2018 Design Award to Valtra A4 Series

Mon, 09 Apr 2018 02:30:00 GMT

Valtra´s newest model series, Valtra A4 (75–130hp), has won the Red Dot 2018 Design Award in the category ‘Commercial Vehicles’. This award is a continuation to Valtra´s success in the world´s most famous and prestigious design award competition in which Valtra was recognized also in 2016 and 2017. The Red Dot Design Award recognizes the high-design quality of the A4 Series tractor.

AGCO Announces New Appointments to Focus On Delivering Best-in-Class Customer Experience

Wed, 04 Apr 2018 09:44:00 GMT

Customer satisfaction and loyalty remains a core focus for all of AGCO’s brands in EME. Through best- in-class customer service and support provided by its dealer network, AGCO is stating its strong commitment to the satisfaction of all its customers. AGCO has announced new

appointments within its Europe and Middle East (EME) team.

Slovakian driver wins Valtra Master Cup

Wed, 21 Mar 2018 02:30:00 GMT

The finals of the Valtra Master Cup were held in March among the winning drivers from last year’s national competitions. The most skilful Valtra driver proved to be Radoslav Račák from Slovakia followed by Tets Kalvis from Latvia in second and Jean-Philippe Paraire from France in third.

Valtra Switches to 100-percent Renewable Fuel

Mon, 12 Mar 2018 02:30:00 GMT

Concrete steps towards a cleaner future. Valtra has become the first tractor factory in the world to begin using Neste MY Renewable Diesel as the start-up fuel for all new tractors. As a result, around 700,000 litres of fossil diesel fuel will be replaced each year by 100-percent renewable fuel.

Valtra SmartTouch awarded again

Wed, 07 Feb 2018 08:01:00 GMT

Valtra’s new armrest and user interface SmartTouch has won the iF Design Award, one of the world’s most prestigious design awards. This year over 6400 designs from 54 countries participated in the competition. The winners were picked by an international jury of 63 experts.

AGCO Inaugurates Sprayer Production Line in Ribeirão Preto (SP)

Wed, 31 Jan 2018 13:00:00 GMT

Luís Felli, the new CEO for AGCO South America, Arnaldo Jardim, the Secretary of Agriculture and Supply of São Paulo state, and Duarte Nogueira, Mayor of Ribeirão Preto, attended the ceremony.

Ribeirão Preto (SP), January 31st, 2018 - AGCO, a worldwide manufacturer and distributor of agricultural equipment, has officially opened a new line for the production of sprayers with brands Massey Ferguson and Valtra in the city of Ribeirão Preto (SP). The event was attended by the following authorities: Mayor of Ribeirão Preto, Duarte Nogueira, Secretary of Agriculture and Supply, Arnaldo Jardim, and AGCO’s CEO for South America, Luis Felli, who has recently joined AGCO on January 12, in addition to special guests.

The Secretary of Agriculture and Supply of São Paulo state, Arnaldo Jardim took the opportunity to highlight the importance of agriculture in the State. "Today's inauguration is an example of trust, enthusiasm and faith in Brazilian agribusiness. In these times of recession, the industry saved the day and the crop. When talking about agriculture 4.0, agriculture in São Paulo and Brazil shows dynamism, quest for productivity, with innovations that dialogue with themes such as connectivity and sustainability", says Jardim.

The mayor of Ribeirão Preto, Duarte Nogueira, stressed that AGCO is essential for the community. "It is very good for Ribeirão Preto and for Brazil, when we are overcoming an adverse scenario, to see companies promoting development. The production of this line in the city will help to compose a quality portfolio to serve both the domestic market and the foreign markets”, he concludes.

The occasion was the first official event of Luis Felli after the announcement he joined the company as the commander of AGCO South America. With the arrival of the sprayer line in Ribeirão Preto, a portfolio expansion is planned, which will increase the volume delivered by the company to the sprayers market by 40%.

AGCO has been making significant investments in the Ribeirão Preto unit since 2015, such as the modernization of the assembly line for sugarcane harvesters to support the growth of the company's domestic market share and also to meet the company's future demands in the foreign market. In total, more than R $ 100 million have been invested over the past three years and today the Ribeirão Preto unit is AGCO's Center for Excellence in Sugarcane Equipment.

"We are making unparalleled investments in the Brazilian market. From 2017 to 2019 more than 150 new products will be launched. It is worth mentioning the T line, whose CVT transmission system significantly reduces fuel consumption and emissions, a great benefit for the environment and for farmer competitiveness”, says Felli. "Innovations like this are a great challenge, but this is our commitment to the Brazilian agribusiness and to Brazil. Our agricultural products in general are commodities and any new technology that will improve the Brazilian competitiveness will be very welcome", he concludes.

Sprayers are agricultural equipment used in the application of pesticides or fertilizers on growing areas. With them farmers can optimize and streamline the application and have precise control over applied product quantities, ensuring increased productivity and production quality.

About AGCO

AGCO (NYSE: AGCO) is a global leader in the design, manufacture and distribution of agricultural solutions and supports more productive farming through its full line of equipment and related services. AGCO products are sold through five core brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®, supported by Fuse® precision technologies and farm optimization services, and are distributed globally through a combination of over 4,200 independent dealers and distributors in approximately 150 countries. Founded in 1990, AGCO is headquartered in Duluth, GA, USA. In 2017, AGCO had net sales of $8.3 billion. For more information, visit http://www.AGCOcorp.com. For company news, information and events, please follow us on Twitter: @AGCOCorp. For financial news on Twitter, please follow the hashtag #AGCOIR.

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Valtra’s success continues: Number one sold tractor also in Iceland

Mon, 08 Jan 2018 02:30:00 GMT

Valtra’s year 2017 has been established extremely successful - previously last week Valtra was announced the most sold tractor both in Norway and Estonia with record braking market shares for Valtra. Now the success continues, as Valtra has retained its position as the most sold tractor in Iceland.