Agco warns of falling demand
THE US-based farm equipment company Agco expects the North American market for agricultural machinery to shrink 15% to 20% next year, with western Europe falling from 5% to 10%.
The warning comes on the back of Agcos third-quarter results which saw sales fall from $759.5m to $665.7m (£397m). Pre-tax profits were $17.9m against $47.3m.
Agco noted that economic uncertainty was also beginning to dent South American markets. It expects demand in the region to fall 5-10% next year.
The company is cutting production and anticipates it will be reducing its global workforce by 1400.
It said it expected to remain in profit in the final quarter, despite taking a $35m to $40m charge the cover the redundancies.
Agcos portfolio includes brands like Massey-Ferguson, Hesston and Fendt.
- Financial Times 30/10/98 page 26 (News Digest)