Highs and lows in tractor trading year
Highs and lows in tractor trading year
AGCO
AGCOS fourth quarter and end of year figures reveal the firm had net sales of $772.9m, a rise of 21% on the same period last year, and a net income of $24.8m.
Company chairman and chief executive, Robert Ratliff, says earnings were boosted by both sales growth and margin expansion. Help also came from improved market conditions in North and South America, new product introductions and the impact of manufacturing facility rationalisations.
Mr Ratliff says this was partially offset by losses from its recently acquired AG-Chem during a seasonally low period which resulted in a loss of $2m in net income.
For the full year, Agco reports an increase in net sales of 9% to $2541.5m and a net income of $31.5m. This compares with last years net sales of $2336.1m and a net income of $16.6m.
In western Europe, sales of tractors fell by 7% compared with 2000 and Agcos sales also declined. "In 2001, western European markets were affected by concerns over livestock diseases and the longer-term impacts of CAP reform and farm consolidation," says Mr Ratliff.
"Our sales performance in 2001 was solid considering these conditions and we expect to maintain our strong market position in 2002."
Meanwhile, the Caterpillar Challenger acquisition is progressing, says Agco. The agreement with Caterpillar to acquire the design, assembly and marketing of the new MT Series Challenger tractor line is subject to regulatory approval but is expected to close in the next 30 days.
The addition of the Challenger line provides Agco with a high hp tractor which it can market worldwide primarily through the Caterpillar distribution network.
Agco will provide Caterpillar dealers with extra products which will broaden their ranges and, says Mr Ratliff, enhance their competitive position.