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1ST HALF: AGCO'S SALES UP 34%, NET INCOME UP 4X
Source: AGCO news release

AGCO, Your Agriculture Company (NYSE: AGCO), a worldwide manufacturer and distributor of agricultural equipment and solutions, reported its results for the second quarter ended June 30, 2021. Net sales for the second quarter were approximately $2.9 billion, an increase of approximately 43.5% compared to the second quarter of 2020. Reported net income was $3.73 per share for the second quarter of 2021, and adjusted net income (3) , which excludes restructuring expenses and the reversal of a valuation allowance previously established against the Company's deferred tax assets in the United States, was $2.88 per share. These results compare to reported net income of $0.93 per share, and adjusted net income (3) , excluding restructuring expenses and a non-cash impairment charge, of $1.11 per share for the second quarter of 2020. Excluding favorable currency translation impacts of approximately 8.9%, net sales in the second quarter of 2021 increased approximately 34.6% compared to the second quarter of 2020.

Net sales for the first six months of 2021 were approximately $5.3 billion, an increase of approximately 33.6% compared to the same period in 2020. Excluding favorable currency translation impacts of approximately 6.3%, net sales for the first six months of 2021 increased approximately 27.3% compared to the same period in 2020. For the first six months of 2021, reported net income was $5.71 per share, and adjusted net income (3) , excluding restructuring expenses and the aforementioned reversal of a valuation allowance was $4.89 per share. These results compare to reported net income of $1.78 per share, and adjusted net income (3) , excluding restructuring expenses and a non-cash impairment charge, of $1.97 per share for the first six months of 2020.

Highlights

*Reported regional sales results (1) : Europe/Middle East ("EME") +45.4%, North America +32.2%, South America +55.9%, Asia/Pacific/Africa ("APA")+56.7%

*Constant currency regional sales results (1)(2)(3) : EME +33.7%, North America +28.9%, South America +53.1%, APA +40.3%

*Regional operating margin performance: EME 12.3%, North America 14.1%, South America 8.3%, APA 11.5%

*Raised full-year outlook for net sales and net income per share

To read the entire report click here.

North America

Net sales in the North American region increased 19.3% in the first six months of 2021 compared to the same period of 2020, excluding the positive impact of currency translation. Increased sales of tractors, parts, grain and protein equipment and Precision Planting products generated most of the increase. Income from operations for the first six months of 2021 rose approximately $53.0 million compared to the same period in 2020 and operating margins reached 13.3%. Higher sales and production, a richer mix of products and the benefit of favorable pricing contributed to the improvement, and helped to offset higher material costs.


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