Strong performance in the main markets of Europe, and North and South America, were behind the 13.6% increase in AGCO net sales last year to a record US12.7 billion (US$11.1b in 2021).
This figure was boosted by a strong last three months of the year (net sales +23.6% to US$3.9 billion) compared to the fourth quarter of 2021. Net sales in the important Europe/Middle East region increased 18.5% in 2022 to US$6.45b (US$6.2b in 2021). All the major European markets contributed to the growth with increased sales of mid-range and high horsepower tractors as well as replacement parts.
The concern saw its net sales rise by a fifth in North America last year to US$3.17b. Increased sales of precision ag products and services as well as high horsepower tractors and combines represented the largest increases. Sales increased significantly across all the South American markets (net sales +56.6% to US$2.12b) with strong growth achieved in high-horsepower tractors, combines and planting equipment.
Looking ahead to the rest of 2023, the industry remains strong comments AGCO boss Eric Hansotia who expects net sales to increase to around US$14.0 billion.
“We assume global market conditions will remain healthy, as favourable farm economics allow farmers to continue to invest in new more productive equipment and technology upgrades,” he comments.
“While improving, we expect supply chain pressures will persist, presenting challenges throughout the year,” he continues. “We remain focused on growing our high-margin precision ag business, globalising the full-line of our Fendt branded products and expanding our parts and service business.”