Farm equipment manufacturer and distributor AGCO (NYSE: AGCO) from Duluth, Georgia, reported third-quarter sales of approximately $2.7 billion, a 9.1% increase over the same period in 2020.
Net sales for the first nine months of 2021 were approximately $8 billion, a 24% increase compared to the same period in 2020.
For the first three quarters of 2021, reported net income was $8.11 per share, and adjusted net income, excluding restructuring expenses and the reversal of a valuation allowance previously established against the company’s deferred tax assets in the U.S., was $7.30 per share.
These results compare to reported net income of $3.86 per share, and adjusted net income, excluding a non-cash impairment charge and restructuring expenses, of $4.06 per share for the first nine months of 2020.
AGCO’s North American net sales grew 15.6% in the first nine months of 2021 compared to the same period of 2020, excluding the positive impact of currency translation.
“Strong operational execution and robust end-market demand produced higher sales, earnings growth and margin expansion during the third quarter,” said Eric Hansotia, AGCO’s chairman, president and CEO. “AGCO continues to face unprecedented supply chain and logistics disruptions as well as material and freight cost inflation. Supply chain constraints have intensified in the recent weeks limiting our ability to meet our production and sales projections. Our efforts are focused on minimizing the impact of the supply chain disruptions to deliver strong full-year sales and earnings growth. Global market conditions remain positive as favorable farm economics are allowing farmers to upgrade and replace their aging fleets. With order boards significantly ahead of last year, we continue to see a strong response for our technology-focused products. AGCO will continue its investment in premium technology, smart farming solutions and enhanced digital capabilities to support our farmer-first strategy and profitably grow the business and earn high returns for its stockholders.”