DULUTH, Ga., Aug. 22, 2024 /PRNewswire/ -- AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, announced today that it will participate in the 2024 Jefferies Industrials Conference on Wednesday, September 4, 2024. The conference will include a fireside chat with Damon Audia, Senior Vice President and Chief Financial Officer, at 8:05 a.m. Eastern Time. Investors may listen to a live webcast of the presentation by accessing the ...

Investors in AGCO Corporation (AGCO) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 20, 2024 $120.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could als ...

Core Viewpoint - AGCO Corporation is currently at the trough of its business cycle, with expectations for a recovery in agricultural equipment demand by FY25, contingent on macroeconomic improvements [2][5][7] Financial Performance - In Q2 2024, AGCO reported an adjusted EPS of $2.53, below consensus estimates of $2.91, with net sales declining 15% year-over-year to $3.25 billion, missing the consensus estimate of $3.5 billion [3] - Sales in South America dropped approximately 40%, particularly in Brazil, due to adverse weather and funding issues, while European sales decreased by 5% and North American sales fell by 18% [3] - The adjusted EBIT margin decreased to 10.3% from 13.1% in Q2 2023, prompting management to lower FY24 guidance for net sales to $12.5 billion, an expected decline of 13.3% year-over-year [3][4] Market Dynamics - The agricultural equipment market is expected to grow due to increasing global population and demand for agricultural products, despite current weak demand attributed to high inflation and poor consumer spending [4][7] - AGCO has cut global production by 23% in Q2 2024, with a significant 57% reduction in South America, and anticipates further cuts in H2 2024 [4] Future Outlook - The anticipated recovery in agricultural product demand is linked to potential interest rate cuts, easing inflation, and improvements in the labor market and housing situation [5][7] - AGCO's forward PE multiple has increased to 11x, indicating market expectations for a recovery, with a target share price of $140 based on projected FY26 earnings [5] Conclusion - Despite recent poor performance, AGCO maintains a buy rating due to the belief that the company is positioned for a future upcycle as macroeconomic conditions improve [7]

TORONTO, Aug. 09, 2024 (GLOBE NEWSWIRE) -- For reasons of public interest and safety, on August 8, 2024, the Registrar of the Alcohol and Gaming Commission of Ontario (AGCO) suspended the liquor sales licence of WAVE KTV, located at 8 Glen Watford Dr. Scarborough, Ontario. As of this date, this establishment is not legally allowed to sell or serve alcohol. The AGCO received information from the Toronto Police Service (TPS) that a serious incident allegedly occurred at WAVE KTV on July 19, 2024. Police respo ...

Financial Performance - Net sales for the three months ended June 30, 2024, were approximately $3,246.6 million, a decrease of 15.1% compared to $3,822.7 million for the same period in 2023[154]. - Income (loss) from operations was $(241.7) million for the three months ended June 30, 2024, compared to $496.4 million for the same period in 2023, primarily due to lower sales and production volumes[157]. - Net income (loss) attributable to AGCO for the three months ended June 30, 2024, was $(367.1) million, or $(4.92) per diluted share, compared to $319.2 million, or $4.26 per diluted share, for the same period in 2023[156]. - Gross profit as a percentage of net sales decreased to 25.8% for the three months ended June 30, 2024, compared to 26.3% for the same period in 2023[162]. - Income from operations for the three months ended June 30, 2024, was $12.4 million, a decrease of $8.5 million or 40.7% compared to $20.9 million in the same period of 2023[183]. - For the six months ended June 30, 2024, net sales were $323.7 million, down $115.6 million or 35.0% from $439.3 million in the same period of 2023[184]. - Income from operations for the six months ended June 30, 2024, decreased to $20.4 million, down $18.6 million or 47.7% from $39.0 million in the same period of 2023[184]. Sales and Market Trends - Unit sales of tractors and combines decreased approximately 22.3% and 21.1% during the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023[160]. - Net sales in the Europe/Middle East segment decreased by $87.9 million (4.4%) for the three months ended June 30, 2024, and by $62.7 million (1.7%) for the six months ended June 30, 2024[176]. - North America net sales decreased by $159.0 million (16.0%) for the three months ended June 30, 2024, and by $352.5 million (18.4%) for the six months ended June 30, 2024[179]. - South America net sales decreased by $249.7 million (41.7%) for the three months ended June 30, 2024, and by $450.1 million (40.8%) for the six months ended June 30, 2024[181]. - Global demand for farm equipment has declined in 2024, leading to expected net sales decrease compared to 2023 due to lower sales volumes and adverse foreign currency translation[218]. Joint Ventures and Strategic Initiatives - The company completed a joint venture with Trimble, acquiring an 85% interest for $1.954 billion in cash, which is expected to enhance its precision agriculture technology offerings[152]. - The company entered into a Stock and Asset Purchase Agreement to sell its Grain & Protein business for $700.0 million, aligning with its strategic transformation[153]. - AGCO acquired an 85% ownership interest in PTx Trimble on April 1, 2024, and began consolidating the joint venture into its financial statements[217]. - The company is in the process of selling its Grain & Protein business, with completion expected in the second half of 2024[217]. Expenses and Financial Obligations - SG&A expenses increased to 11.7% of net sales for the three months ended June 30, 2024, up from 9.2% in the same period in 2023, driven by transaction costs related to the PTx Trimble joint venture[163]. - Restructuring expenses amounted to $30.2 million and $31.2 million for the three and six months ended June 30, 2024, compared to $6.1 million and $7.5 million in the same periods of 2023[166]. - Interest expense, net increased to $29.9 million and $31.8 million for the three and six months ended June 30, 2024, compared to $5.8 million and $6.3 million in 2023[169]. - The company has a total debt to capitalization ratio of 48.8% as of June 30, 2024, up from 23.0% at December 31, 2023, primarily due to the debt incurred for the PTx Trimble joint venture transaction[196]. - The company expects to incur one-time termination benefits of approximately $150.0 million to $200.0 million related to the restructuring program, with anticipated annual run-rate benefits of $100.0 million to $125.0 million once fully implemented[166]. Cash Flow and Capital Management - Cash flows used in operating activities decreased to approximately $134.5 million for the first six months of 2024, compared to approximately $365.0 million for the same period in 2023[209]. - Working capital increased to approximately $2,275.2 million as of June 30, 2024, compared to $1,997.2 million at December 31, 2023[210]. - Capital expenditures for the first six months of 2024 were approximately $193.0 million, down from $237.0 million for the same period in 2023[211]. - Cash received from accounts receivable sales agreements was approximately $2.4 billion as of June 30, 2024, compared to $2.5 billion as of December 31, 2023[205]. Risks and Uncertainties - The company faces risks from supply chain disruptions, including potential natural gas shortages in Europe and other energy sources[224]. - AGCO's financial condition is influenced by various factors, including demand, currency stability, and pricing, which could adversely impact operations if assumptions are incorrect[219]. - The company has a substantial amount of indebtedness, subjecting it to restrictive covenants that may affect operations and expansion[225]. - The Company is monitoring various claims and lawsuits that may have a material adverse effect on its financial position[216]. - Forward-looking statements regarding earnings, net sales, and market conditions are subject to risks and uncertainties that could lead to materially different outcomes[222].

Reiterates confidence in company's Board and management team to execute Farmer-First strategy; Challenges TAFE's self-serving campaignDULUTH, Ga., Aug. 7, 2024 /PRNewswire/ -- AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, today issued the following statement in response to TAFE's amended 13D filing:AGCO maintains an open dialogue with all stockholders and welcomes constructive input toward the shared goal of maximizing s ...

Ballygally View Images/iStock Editorial via Getty Images The Agricultural and Farm Machinery industry has been rough on investors over the past three years. Since the start of 2021, only Deere & Company (DE) and Alamo Group (ALG) have delivered positive total returns, but both turned sharply negative shortly thereafter. In 2024, exactly zero of the eleven companies in this sector are showing positive returns. AGCO Corporation (NYSE:AGCO) has been one of the sector’s worst performers. While it has attract ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:AGCO Corporation (AGCO) is an agricultural machinery company. The Zacks Consensus Estimate for its current year earnings has been revised 10.3% downward over the last 60 days.Corsair Gaming, Inc. (CRSR) is a gaming technology company. The Zacks Consensus Estimate for its current year earnings has been revised 21.1% downward over the last 60 days.DoorDash, Inc. (DASH) is an e-commerce platform provider.The Zacks Consensus Estimate for ...

AGCO Corporation (AGCO) delivered an adjusted earnings per share of $2.53 in second-quarter 2024 compared with the prior-year quarter’s $4.29. The reported figure missed the Zacks Consensus Estimate of $2.88.Including one-time items, AGCO posted a loss of $4.92 per share against the year-ago quarter’s earnings per share of $4.26.Revenues decreased 15.1% year over year to $3.25 billion in the June-end quarter. The top line missed the Zacks Consensus Estimate of $3.49 billion. Excluding the unfavorable curren ...

Financial Data and Key Metrics Changes - AGCO's sales decreased approximately 15% in Q2 2024 compared to the same period in 2023, reflecting softer industry-wide demand and production cuts [9][20] - Consolidated operating margin was 10.3% on an adjusted basis, down from previous levels due to lower sales and production cuts [10][22] - Free cash flow was negative $328 million through June 2024, approximately 45% less than the same period in 2023, primarily due to improved working capital and lower capital expenditures [23] Business Line Data and Key Metrics Changes - South American net sales decreased approximately 40% in Q2 2024, driven by significantly softer industry sales and underproduction of retail demand [20] - North American net sales decreased approximately 18% in Q2 2024, with significant declines in high horsepower and mid-range tractor categories [21] - Replacement part sales were approximately $488 million for Q2, down approximately 1% year-over-year [21] Market Data and Key Metrics Changes - Global industry retail sales of farm equipment in Q2 2024 were lower across all key markets, with North America down 8%, Western Europe down 5%, and South America down 14% [11][12] - The market forecast for North America is now expected to be 10% to 15% lower compared to 2023, while South America is expected to see a decline of approximately 25% to 30% [24][25] Company Strategy and Development Direction - AGCO is focusing on being the most farmer-focused company in the industry, emphasizing customer support and innovation [9] - The company announced a definitive agreement to divest the Grain & Protein business, which is expected to streamline operations and enhance focus on higher-margin products [10][27] - AGCO aims to improve mid-cycle operating margins to 12% and outgrow the industry by 4% to 5% annually through three high-margin growth levers [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a transitional year with significant production cuts to align with dealer inventory levels, expecting a recovery in 2025 [8][10] - Despite current challenges, management remains optimistic about long-term agricultural fundamentals, driven by population growth and increased demand for grain [12] - The company anticipates adjusted operating margins to decline from 12% in 2023 to around 9% in 2024, reflecting the industry's downturn [26] Other Important Information - AGCO's restructuring plan includes a reduction of approximately 6% of the salaried workforce, expected to incur expenses of $150 million to $200 million [27] - The company expects to receive proceeds of approximately $700 million from the sale of the Grain & Protein business, with a projected loss of approximately $495 million recognized [27] Q&A Session Summary Question: Can you discuss the decremental margin outlook for the back half of the year? - Management indicated that production cuts in the back half of 2024 are the highest in over a decade, expecting decremental margins in the mid to high 20s for 2025 [29][30] Question: How is the Precision Ag business performing? - The Precision Ag business is experiencing a mix of OEM sales down and retrofit sales cooling, but overall performance is in line with expectations [31][32] Question: What is the production outlook versus retail sales? - Production in the back half is expected to be down in the mid-20s, with a focus on aligning production with retail demand [33][34] Question: What drove the pricing down to 0%? - The reduction in pricing outlook is primarily due to increased discounts aimed at stimulating retail sales in a weakening industry [37][38] Question: How will the restructuring impact the manufacturing structure? - The restructuring is focused on reducing SG&A costs and leveraging technology for efficiency, with potential for further improvements in the future [39][40]