AGCO’s reported net sales for the first quarter of 2021 were approximately US$2.4 billion, an increase of approximately 23.4% compared to the first quarter of 2020.
“AGCO continued its strong operational performance in the first quarter and set records for first quarter operating income and earnings per share,” stated Eric Hansotia, AGCO’s chairman, president and CEO.
“Favourable market demand and positive market response to our technology-focused products helped produce sales growth and margin expansion across all regions. Outstanding execution from our team allowed us to minimize the impact of ongoing supply constraints, and an improved pricing environment helped offset material and freight cost inflation. Healthy farm fundamentals are driving robust replacement demand and our order boards remain well ahead of last year. With increased visibility for the coming quarters, we have raised our net sales and earnings forecast for 2021 while enabling continued investment in our premium technology, smart farming solutions and enhanced digital capabilities.”
“The ongoing economic recovery from the COVID-19 pandemic is putting pressure on global grain inventories which are well below last year’s levels,” stated Hansotia. “As a result, prices of soft commodity are supporting more favourable farm economics as well as increased demand for machinery. These improved conditions are expected to generate industry growth across all the major markets in 2021.”
Net sales in Asia/Pacific/Africa increased 65.9%, excluding the positive impact of currency translation, in the first three months of 2021 compared to the same period in 2020. Higher sales in China, Australia as well as Africa produced most of the increase.
