AGCO has reported net sales of approximately US$2.0 billion for the fourth quarter of 2015, a decrease of approximately 21.2% compared with net sales of approximately US$2.5 billion for the fourth quarter of 2014. Source: AFDJ eNews
“In the midst of challenging market conditions, we worked aggressively in 2015 to better align our costs and working capital with the weaker demand environment,” Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer said.
“Focused inventory reduction efforts contributed to the generation of over US$300 million in free cash flow.
“In addition, our cost reduction actions were implemented while maintaining key investments in new products.
“The benefits of our product development efforts can be seen through the extensive list of awards that AGCO received during 2015.
“Most recently, we earned three machine-of-the-year awards at Agritechnica, the world’s largest indoor farm show in Hannover, Germany, for the Fendt 1000, the Valtra N series and the Massey Ferguson 5713 tractors.”
Net sales for the full year of 2015 were approximately US$7.5 billion, a decrease of approximately 23.2% compared with 2014.
For the full year of 2015, reported net income was US$3.06 per share and adjusted net income, excluding restructuring and other infrequent expenses, was US$3.24 per share.
These results compare with reported net income of US$4.36 per share and adjusted net income, excluding restructuring and other infrequent expenses, of US$4.70 per share for the full year of 2014.
Fourth quarter regional sales results for AGCO were (1): North America (18.9)%, Europe/Africa/Middle East (“EAME”) 0.9%, South America (33.9)%, Asia/Pacific (“APAC”) (4.5)%.
Mr Richenhagen said that looking forward to 2016, market conditions are expected to remain challenging in key markets.
In addition to diligent cost management, the company will be concentrating on initiatives that will drive long-term benefits and raise the efficiency of its factories, improve its service levels and strengthen the product offering.