Sales increase AGCO turnover
The company behind Massey Ferguson, Fendy and Valtra machinery notched up almost $10 billion in revenue last year, up 12 per cent.
AGCO reported a total turnover figure of $9.4 billion for the past financial year, attributing the increase to sales growth and conservative spending.
Revenue was up 12 per cent on 2017, when sales were $8.3 billion.
The company also reported a 28 per cent increase in adjusted net income and a 13 per cent increase in net sales for the year.
AGCO chief executive Martin Richenhagen said the company delivered solid results “while making important investments”.
“Sales growth across all of our regions and solid operational execution allowed AGCO to meet its financial targets for 2018,” he said. “We are growing our business by delivering the broadest product offering in the industry.”
The company had a strong fourth quarter, with net sales at $2.6 billion, up 2 per cent year-on-year.
Mr Richehagen said AGCO had forecast further “earnings improvement” in 2019, as “industry conditions trend positively”.
He said the company would “continue to invest in new products, technology, improved distribution and enhanced digital capabilities”.
AGCO, founded in 1990, is headquartered in Georgia, in the US. It is currently engaged in a legal battle with competitor Deere & Co over what Deere alleges was infringed patents.
Deere & Company sued Precision Planting LLC and AGCO Corporation last year, claiming the companies had infringed on 12 John Deere patents.
It filed the complaint in the US District Court in Delaware last June, claiming damages and saying it will continue to suffer damages if the alleged infringement continued.
Most of the allegations relate to its 2014 precision planter Exact Emerge, which allows growers to plant corn and soybeans at speeds of up to 16km/h, about double the long-thought limit.
This includes vSet seed meters and SpeedTube products, for placement, uniform seed spacing and even crop emergents.
The move came two years after Deere tried to buy Precision Planting LLC from Monsanto in 2016 but was blocked by the US Department of Justice.
Its main rival Precision Planting LLC successfully bought AGCO in September 2017.
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