AGCO reports net sales of approx. US$7.2 billion for the first half of this year. This figure is around 27% higher than the same six months in 2022.
The first half results of the Fendt, Massey Ferguson and Valtra parent company were bolstered by the 30% increase in Q2 net sales to a record $3.8 billion.
In Europe/Middle East, the strongest region for AGCO, net sales increased by more than 28% in the first six months of this year to around US$3.7 billion (US$2.8 billion same six months in 2022). The improvement was driven by increased sales of high-horsepower tractors, utility tractors and parts along with favourable pricing.
Significant declines in Italy and Spain were mostly offset by higher industry sales in Germany, Turkey, France and the UK. Industry retail sales for combines in Western Europe increased significantly in the first six months of 2023 compared to 2022.
AGCO’s grew its North American net sales by a third in the first half of 2023 to US$1.9 billion (US$1.4 billion same period in 2022). The growth resulted primarily from increased sales of high-horsepower tractors, combines and application equipment.
Net sales in the South American region increased 26.7% in the first six months to US$1.1 billion (US$875 million same six months in 2022). Strong sales growth in Brazil was partially offset by lower sales in Argentina. Most of the increase was driven by increased sales of high horsepower, higher margin tractors, as well as increased sales of Momentum planters and favourable pricing.
AGCO boss Eric Hansotia said that the company’s first half results were fuelled by robust demand for its products and favourable global industry conditions. “Demand for larger agricultural equipment continues to be elevated with healthy farm income expected across the major agricultural production regions, and easing supply-chain constraints are enabling industry production to keep pace with demand,” he said. “Commodity prices remain at supportive levels, but the recent volatility, due to uncertainty of current year crop production in the northern hemisphere, has influenced farmer sentiment of late.”
AGCO net sales for 2023 are expected to be around US$14.7 billion.