Improved global demand for tractors and farm machinery were reflected in AGCO (Fendt, Massey Ferguson and Valtra) performance last year, which ended with record net sales of around US$11.1b. The previous highest figure was US$10.8b in 2013.
The lion’s share of last year’s revenue, which was a fifth higher than in 2020, was generated in the Europe/Middle East region where net sales rose by 13% to $6.2b. The European growth was fueled by increased sales of tractors, combines and replacement parts.
“Market demand improved across all the major western European markets with the strongest growth in Italy, Finland and the UK,” comments AGCO top man Eric Hansotia. “Healthy income levels for arable farmers as well as dairy and livestock producers supported increased equipment demand in 2021.”
Increased sales of high horsepower and mid-range tractors as well as Precision Planting products were behind the 20% increase in net sales in North America to $2.6b and turnover was up by nearly 50% in South America to $1.3b.
Mr Hansotia added that the company exceeded sales targets despite considerable supply chain challenges, which he expects will persist throughout the rest of this year. Industry demand in western Europe is expected to be flat to modestly higher in 2022 compared to the improved levels in 2021, and the company reckons an extended fleet age and favourable commodity prices will continue to stimulated demand for new tractors and machines in North America.
Overall sales volumes are expected to increase this year and AGCO forecasts net sales of around US$12.3b.