Have you evaluated the performance of Agco's (AGCO) international operations for the quarter ending September 2024? Given the extensive global presence of this farm equipment maker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For i ...

PART I. FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements and management's financial analysis [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents AGCO Corporation's unaudited condensed consolidated financial statements and detailed notes for the specified periods [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity Balance Sheet Summary (September 30, 2024 vs. December 31, 2023) | Metric | Sep 30, 2024 (Millions $) | Dec 31, 2023 (Millions $) | Change (Millions $) | % Change | | :-------------------------------- | :------------------------ | :------------------------ | :------------------ | :------- | | **Assets:** | | | | | | Total current assets | 6,538.9 | 6,340.8 | 198.1 | 3.1% | | Property, plant and equipment, net | 1,880.6 | 1,920.9 | (40.3) | (2.1%) | | Goodwill | 2,358.4 | 1,333.4 | 1,025.0 | 76.9% | | Total assets | 13,506.8 | 11,421.2 | 2,085.6 | 18.3% | | **Liabilities & Equity:** | | | | | | Total current liabilities | 4,280.1 | 4,343.6 | (63.5) | (1.5%) | | Long-term debt, less current portion | 3,610.0 | 1,377.2 | 2,232.8 | 162.1% | | Total liabilities | 9,020.5 | 6,764.4 | 2,256.1 | 33.3% | | Total stockholders' equity | 4,148.8 | 4,656.8 | (508.0) | (10.9%) | | Total liabilities, redeemable noncontrolling interests and stockholders' equity | 13,506.8 | 11,421.2 | 2,085.6 | 18.3% | - Goodwill increased significantly by **$1,025.0 million**, primarily due to the PTx Trimble joint venture acquisition[7](index=7&type=chunk)[8](index=8&type=chunk)[29](index=29&type=chunk) - Long-term debt, less current portion, increased by **$2,232.8 million**, reflecting financing for the PTx Trimble acquisition[8](index=8&type=chunk)[59](index=59&type=chunk)[199](index=199&type=chunk) [Condensed Consolidated Statements of Operations (Three Months)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20Months%20Ended%20September%2030,%202024%20and%202023) This section details the company's financial performance over the three months ended September 30 Three Months Ended September 30 (2024 vs. 2023) | Metric | Sep 30, 2024 (Millions $) | Sep 30, 2023 (Millions $) | Change (Millions $) | % Change | | :------------------------------------------ | :------------------------ | :------------------------ | :------------------ | :------- | | Net sales | 2,599.3 | 3,455.5 | (856.2) | (24.8%) | | Gross profit | 603.1 | 934.0 | (330.9) | (35.4%) | | Income from operations | 114.8 | 423.6 | (308.8) | (72.9%) | | Net income attributable to AGCO Corporation and subsidiaries | 30.0 | 280.6 | (250.6) | (89.3%) | | Basic EPS | 0.40 | 3.75 | (3.35) | (89.3%) | | Diluted EPS | 0.40 | 3.74 | (3.34) | (89.3%) | - Net sales decreased by **24.8%** due to lower sales volumes from softer end market demand and unfavorable currency impacts[11](index=11&type=chunk)[161](index=161&type=chunk) - Income from operations decreased by **72.9%** due to lower sales and production volumes reflecting weak industry conditions[11](index=11&type=chunk)[161](index=161&type=chunk) - Gross profit as a percentage of net sales decreased from **27.0%** to **23.2%** primarily due to lower production volumes and unfavorable net pricing impacts[11](index=11&type=chunk)[157](index=157&type=chunk)[165](index=165&type=chunk) [Condensed Consolidated Statements of Operations (Nine Months)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20Nine%20Months%20Ended%20September%2030,%202024%20and%202023) This section details the company's financial performance over the nine months ended September 30 Nine Months Ended September 30 (2024 vs. 2023) | Metric | Sep 30, 2024 (Millions $) | Sep 30, 2023 (Millions $) | Change (Millions $) | % Change | | :------------------------------------------ | :------------------------ | :------------------------ | :------------------ | :------- | | Net sales | 8,774.6 | 10,611.7 | (1,837.1) | (17.3%) | | Gross profit | 2,210.4 | 2,794.6 | (584.2) | (20.9%) | | Income from operations | 146.7 | 1,307.3 | (1,160.6) | (88.8%) | | Net income (loss) attributable to AGCO Corporation and subsidiaries | (169.1) | 832.4 | (1,001.5) | (120.3%) | | Basic EPS | (2.27) | 11.11 | (13.38) | (120.4%) | | Diluted EPS | (2.27) | 11.10 | (13.37) | (120.4%) | - Net sales decreased by **17.3%** due to lower sales volumes from softer end market demand and unfavorable currency impacts[14](index=14&type=chunk)[162](index=162&type=chunk) - Income from operations decreased by **88.8%** primarily due to lower sales and production volumes, a **$497.8 million** loss on business held for sale, increased restructuring and business optimization expenses, and higher selling, general and administrative expenses[14](index=14&type=chunk)[162](index=162&type=chunk) - The company reported a net loss of **$169.1 million**, a significant decline from a net income of **$832.4 million** in the prior year[14](index=14&type=chunk)[160](index=160&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20for%20the%20Three%20and%20Nine%20Months%20Ended%20September%2030,%202024%20and%202023) This section presents the company's comprehensive income or loss, including other comprehensive income items Comprehensive Income (Loss) (Three Months Ended Sep 30) | Metric | Sep 30, 2024 (Millions $) | Sep 30, 2023 (Millions $) | Change (Millions $) | | :---------------------------------------------------- | :------------------------ | :------------------------ | :------------------ | | Net income | 28.9 | 280.5 | (251.6) | | Other comprehensive income (loss) | 84.6 | (52.1) | 136.7 | | Comprehensive income attributable to AGCO Corporation and subsidiaries | 113.5 | 228.5 | (115.0) | Comprehensive Income (Loss) (Nine Months Ended Sep 30) | Metric | Sep 30, 2024 (Millions $) | Sep 30, 2023 (Millions $) | Change (Millions $) | | :---------------------------------------------------- | :------------------------ | :------------------------ | :------------------ | | Net income (loss) | (172.0) | 832.3 | (1,004.3) | | Other comprehensive income (loss) | (95.0) | 66.2 | (161.2) | | Comprehensive income (loss) attributable to AGCO Corporation and subsidiaries | (264.2) | 898.6 | (1,162.8) | - Foreign currency translation adjustments shifted from a loss of **$54.5 million** in 2023 to a gain of **$81.0 million** for the three months ended September 30, 2024[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Nine%20Months%20Ended%20September%2030,%202024%20and%202023) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities Cash Flows (Nine Months Ended Sep 30) | Metric | Sep 30, 2024 (Millions $) | Sep 30, 2023 (Millions $) | Change (Millions $) | | :------------------------------------------ | :------------------------ | :------------------------ | :------------------ | | Net cash provided by (used in) operating activities | (108.0) | 202.7 | (310.7) | | Net cash used in investing activities | (2,181.5) | (378.7) | (1,802.8) | | Net cash provided by financing activities | 2,351.3 | 111.2 | 2,240.1 | | Increase (decrease) in cash, cash equivalents and restricted cash | 47.1 | (108.8) | 155.9 | | Cash, cash equivalents and restricted cash, end of period | 642.6 | 680.7 | (38.1) | - Operating activities shifted from providing **$202.7 million** in cash in 2023 to using **$108.0 million** in 2024, primarily due to a decrease in net income[19](index=19&type=chunk)[213](index=213&type=chunk) - Investing activities used significantly more cash (**$2,181.5 million** vs. **$378.7 million**), mainly due to the **$1,902.2 million** purchase of businesses (PTx Trimble acquisition)[19](index=19&type=chunk) - Financing activities provided substantially more cash (**$2,351.3 million** vs. **$111.2 million**), driven by proceeds from indebtedness to fund the PTx Trimble acquisition[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. BASIS OF PRESENTATION](index=9&type=section&id=1.%20BASIS%20OF%20PRESENTATION) This section outlines the accounting principles and policies used in preparing the financial statements - The financial statements are prepared in accordance with U.S. GAAP for interim financial information and SEC rules[22](index=22&type=chunk) - Turkey and Argentina are identified as highly inflationary economies, requiring the U.S. dollar as the functional currency for subsidiaries in those regions, with remeasurement adjustments reported in 'Other expense, net'[23](index=23&type=chunk)[24](index=24&type=chunk) - The Company is evaluating new accounting pronouncements (ASU 2023-07 on Segment Reporting and ASU 2023-09 on Income Tax Disclosures) for their potential effect on financial statement disclosures[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) [2. ACQUISITIONS](index=10&type=section&id=2.%20ACQUISITIONS) This section details significant business acquisitions, including the PTx Trimble joint venture - On April 1, 2024, AGCO acquired an **85%** interest in PTx Trimble, a joint venture with Trimble Inc., for **$1,954.0 million** in cash, aiming to create a global-leading mixed-fleet precision agriculture platform[28](index=28&type=chunk)[154](index=154&type=chunk) Preliminary Purchase Consideration for PTx Trimble (as of April 1, 2024) | Category | Amount (Millions $) | | :------------------------------------------ | :------------------ | | Total cash consideration for OneAg | 1,954.0 | | Estimated working capital and other adjustments | (45.6) | | Equity transaction associated with JCA noncontrolling interest | 3.1 | | **Total purchase consideration** | **1,911.5** | Preliminary Fair Values of Assets Acquired and Liabilities Assumed (as of April 1, 2024) | Category | Amount (Millions $) | | :-------------------------- | :------------------ | | Total assets acquired | 2,286.3 | | Total liabilities assumed | 42.6 | | Redeemable noncontrolling interests | 332.2 | | **Net assets acquired** | **1,911.5** | Acquired Identifiable Intangible Assets of OneAg (as of acquisition date) | Asset Type | Fair Value (Millions $) | Useful Life | | :----------------------- | :---------------------- | :---------------- | | Developed Technology | 359.3 | 7-15 years | | Customer Relationships | 39.9 | 20 years | | Tradename | 6.1 | 5 years | | Favorable contracts | 44.8 | 2-7 years | | **Total** | **450.1** | | - Goodwill of **$1,731.3 million** was recorded, representing expected future economic benefits from product sales, operating efficiencies, and sales channel synergies[29](index=29&type=chunk)[33](index=33&type=chunk) - PTx Trimble's net sales and net loss attributable to AGCO Corporation and subsidiaries consolidated since the acquisition date were **$122.1 million** and **$21.3 million**, respectively[38](index=38&type=chunk) [3. BUSINESS HELD FOR SALE](index=12&type=section&id=3.%20BUSINESS%20HELD%20FOR%20SALE) This section describes the assets and liabilities of the Grain & Protein business classified as held for sale - On July 25, 2024, AGCO entered into an agreement to sell the majority of its Grain & Protein (G&P) business for **$700.0 million**, which closed on November 1, 2024. This divestiture aligns with AGCO's strategic transformation[39](index=39&type=chunk)[40](index=40&type=chunk)[155](index=155&type=chunk) - The Company recognized a loss on business held for sale of **$497.8 million** for the nine months ended September 30, 2024, representing the estimated loss on the business, including **$71.6 million** of cumulative translation adjustment losses[40](index=40&type=chunk)[170](index=170&type=chunk) Major Categories of Assets and Liabilities Classified as Held for Sale (as of September 30, 2024) | Category | Amount (Millions $) | | :------------------------------------------ | :------------------ | | Total current assets held for sale | 417.0 | | Total assets held for sale | 876.0 | | Total current liabilities held for sale | 259.6 | | Total liabilities held for sale | 286.5 | | **Disposal group, net** | **589.5** | [4. ACCOUNTS RECEIVABLE SALES AGREEMENTS](index=13&type=section&id=4.%20ACCOUNTS%20RECEIVABLE%20SALES%20AGREEMENTS) This section explains the company's off-balance sheet accounts receivable sales agreements - AGCO sells a majority of its wholesale receivables in North America, Europe, and Brazil to its finance joint ventures, accounted for as off-balance sheet transactions[42](index=42&type=chunk)[44](index=44&type=chunk)[209](index=209&type=chunk) - Outstanding receivables sold under these agreements were approximately **$2.2 billion** as of September 30, 2024, a decrease from **$2.5 billion** at December 31, 2023[42](index=42&type=chunk)[209](index=209&type=chunk) - Losses on sales of receivables were **$28.4 million** for the three months and **$92.2 million** for the nine months ended September 30, 2024, compared to **$40.5 million** and **$99.3 million** for the comparable periods in 2023[46](index=46&type=chunk)[173](index=173&type=chunk) [5. GOODWILL AND OTHER INTANGIBLE ASSETS](index=14&type=section&id=5.%20GOODWILL%20AND%20OTHER%20INTANGIBLE%20ASSETS) This section details changes in goodwill and other intangible assets, including acquisition-related impacts Goodwill Carrying Amount Changes (Nine Months Ended Sep 30, 2024) | Metric | Amount (Millions $) | | :-------------------------------- | :------------------ | | Balance as of Dec 31, 2023 | 1,333.4 | | Acquisitions (PTx Trimble) | 1,740.0 | | Reclassified to held for sale (G&P) | (715.8) | | Foreign currency translation | 0.8 | | **Balance as of Sep 30, 2024** | **2,358.4** | Acquired Intangible Assets Gross Carrying Amounts (Nine Months Ended Sep 30, 2024) | Metric | Trademarks & Trade Names (Millions $) | Customer Relationships (Millions $) | Patents & Technology (Millions $) | Other (Millions $) | Total (Millions $) | | :-------------------------------- | :------------------------------------ | :---------------------------------- | :-------------------------------- | :----------------- | :----------------- | | Gross carrying amounts, Dec 31, 2023 | 194.3 | 580.7 | 148.2 | 6.3 | 929.5 | | Acquisitions | 6.1 | 39.9 | 359.3 | 44.8 | 450.1 | | Reclassified to held for sale | (124.6) | (420.6) | (60.0) | — | (605.2) | | Foreign currency translation | (0.4) | (3.6) | (2.2) | 0.1 | (6.1) | | **Gross carrying amounts, Sep 30, 2024** | **75.4** | **196.4** | **445.3** | **51.2** | **768.3** | - Amortization expense for acquired intangibles was **$54.4 million** for the nine months ended September 30, 2024[51](index=51&type=chunk) [6. INVENTORIES](index=16&type=section&id=6.%20INVENTORIES) This section provides a breakdown of the company's inventory balances and related reserves Inventories, Net (excluding held for sale) (Sep 30, 2024 vs. Dec 31, 2023) | Category | Sep 30, 2024 (Millions $) | Dec 31, 2023 (Millions $) | | :-------------------------- | :------------------------ | :------------------------ | | Finished goods | 1,604.6 | 1,460.7 | | Repair and replacement parts | 813.5 | 823.1 | | Work in process | 260.3 | 255.2 | | Raw materials | 764.8 | 901.7 | | **Inventories, net** | **3,443.2** | **3,440.7** | - The reserve for surplus and obsolete inventories increased to **$285.9 million** at September 30, 2024, from **$238.9 million** at December 31, 2023[54](index=54&type=chunk) [7. PRODUCT WARRANTY](index=17&type=section&id=7.%20PRODUCT%20WARRANTY) This section outlines the company's product warranty accruals and related activity Warranty Reserve Activity (Nine Months Ended Sep 30, 2024 vs. 2023) | Metric | Sep 30, 2024 (Millions $) | Sep 30, 2023 (Millions $) | | :------------------------------------------ | :------------------------ | :------------------------ | | Balance at beginning of period | 800.8 | 640.0 | | Accruals for warranties issued | 292.7 | 321.4 | | Settlements made and deferred revenue recognized | (291.8) | (222.7) | | **Balance at September 30** | **792.8** | **735.2** | - Warranty reserves are primarily included in 'Accrued expenses' (**$645.2 million**) and 'Other noncurrent liabilities' (**$147.6 million**) as of September 30, 2024[55](index=55&type=chunk) [8. SUPPLIER FINANCE PROGRAMS](index=18&type=section&id=8.%20SUPPLIER%20FINANCE%20PROGRAMS) This section describes the company's supplier finance arrangements and outstanding amounts - AGCO has supplier financing arrangements allowing suppliers to receive early payments from banks/intermediaries, with AGCO paying the face amount on the due date[58](index=58&type=chunk)[212](index=212&type=chunk) - Amounts outstanding unpaid to banks or intermediaries totaled **$77.7 million** at September 30, 2024, down from **$82.7 million** at December 31, 2023, and are reflected in 'Accounts payable'[58](index=58&type=chunk)[212](index=212&type=chunk) [9. INDEBTEDNESS](index=18&type=section&id=9.%20INDEBTEDNESS) This section details the company's long-term debt, credit facilities, and financing activities Long-term Debt (Sep 30, 2024 vs. Dec 31, 2023) | Debt Instrument | Sep 30, 2024 (Millions $) | Dec 31, 2023 (Millions $) | | :------------------------------------------ | :------------------------ | :------------------------ | | Credit facility, expires 2027 | 790.0 | — | | Term Loan Facility borrowings | 500.0 | — | | 5.450% Senior notes due 2027 | 400.0 | — | | 5.800% Senior notes due 2034 | 700.0 | — | | 0.800% Senior notes due 2028 | 670.2 | 664.0 | | 1.002% EIB Senior term loan due 2025 | 279.3 | 276.7 | | EIB Senior term loan due 2029 | 279.3 | 276.7 | | EIB Senior term loan due 2030 | 189.9 | — | | Senior term loans due between 2025 and 2028 | 163.7 | 162.1 | | Other long-term debt | 1.1 | 3.1 | | Debt issuance costs | (12.8) | (3.1) | | **Total long-term indebtedness** | **3,610.0** | **1,377.2** | - The Company issued **$400.0 million** of **5.450%** Senior Notes due 2027 and **$700.0 million** of **5.800%** Senior Notes due 2034 on March 21, 2024, to finance the PTx Trimble acquisition[64](index=64&type=chunk)[195](index=195&type=chunk) - The **$500.0 million** Term Loan Facility and **$150.0 million** outstanding under the Credit Facility were repaid on November 1, 2024, using proceeds from the sale of the G&P business[62](index=62&type=chunk)[200](index=200&type=chunk) - The debt to capitalization ratio increased to **48.8%** at September 30, 2024, from **23.0%** at December 31, 2023, primarily due to indebtedness incurred for the PTx Trimble joint venture transaction[202](index=202&type=chunk) [10. RESTRUCTURING AND BUSINESS OPTIMIZATION EXPENSES](index=22&type=section&id=10.%20RESTRUCTURING%20AND%20BUSINESS%20OPTIMIZATION%20EXPENSES) This section covers expenses related to the company's restructuring and business optimization programs - On June 24, 2024, AGCO announced a restructuring program to reduce structural costs, streamline the workforce, and enhance global efficiencies in response to weakening demand in the agriculture industry[75](index=75&type=chunk)[169](index=169&type=chunk) - The Company estimates one-time termination benefits of **$150.0 million** to **$200.0 million**, primarily cash charges for severance, with the majority expected in 2024 and the first half of 2025[75](index=75&type=chunk)[169](index=169&type=chunk) - Restructuring and business optimization expenses were **$41.7 million** for the nine months ended September 30, 2024, compared to **$8.3 million** in the same period of 2023[14](index=14&type=chunk)[169](index=169&type=chunk) [11. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES](index=23&type=section&id=11.%20DERIVATIVE%20INSTRUMENTS%20AND%20HEDGING%20ACTIVITIES) This section describes the company's use of derivative instruments for hedging market risks - AGCO uses cash flow hedges (foreign currency and steel commodity contracts) to minimize cash flow variability, with a total notional value of **$234.7 million** for foreign currency contracts at September 30, 2024[79](index=79&type=chunk)[80](index=80&type=chunk) - A gain of **$8.2 million** from a treasury rate lock for the 2034 Notes was recognized in accumulated other comprehensive loss and will be reclassified to interest expense over the debt's maturity[81](index=81&type=chunk) - The Company uses non-derivative and derivative instruments, including a cross currency swap contract (notional amount of **$277.0 million** at Sep 30, 2024), to hedge net investments in foreign operations[88](index=88&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk) Fair Value of Derivative Instruments (as of September 30, 2024) | Category | Asset Fair Value (Millions $) | Liability Fair Value (Millions $) | | :------------------------------------------ | :---------------------------- | :---------------------------- | | Designated as hedging instruments | 23.4 | 4.6 | | Not designated as hedging instruments | 2.4 | 5.9 | | **Total derivative instruments** | **25.8** | **10.5** | [12. STOCKHOLDERS' EQUITY](index=28&type=section&id=12.%20STOCKHOLDERS'%20EQUITY) This section presents changes in the company's stockholders' equity, including dividends and capital adjustments Total AGCO Corporation Stockholders' Equity (Sep 30, 2024 vs. Dec 31, 2023) | Metric | Sep 30, 2024 (Millions $) | Dec 31, 2023 (Millions $) | Change (Millions $) | | :------------------------------------------ | :------------------------ | :------------------------ | :------------------ | | Common stock | 0.7 | 0.7 | 0.0 | | Additional paid-in capital | 12.4 | 4.1 | 8.3 | | Retained earnings | 5,938.9 | 6,360.0 | (421.1) | | Accumulated other comprehensive loss | (1,803.2) | (1,708.1) | (95.1) | | **Total AGCO Corporation stockholders' equity** | **4,148.8** | **4,656.7** | **(507.9)** | - The Company paid a special variable dividend of **$2.50** per common share in Q2 2024 and declared a regular quarterly dividend of **$0.29** per common share for Q4 2024[110](index=110&type=chunk)[216](index=216&type=chunk) - Cash dividends declared and paid per common share for the nine months ended September 30, 2024, were **$3.37**, compared to **$5.81** in 2023[14](index=14&type=chunk)[110](index=110&type=chunk)[216](index=216&type=chunk) - No direct share repurchases or accelerated share repurchase agreements were entered into during the three and nine months ended September 30, 2024[108](index=108&type=chunk)[216](index=216&type=chunk) [13. NET INCOME (LOSS) PER COMMON SHARE](index=33&type=section&id=13.%20NET%20INCOME%20(LOSS)%20PER%20COMMON%20SHARE) This section details the basic and diluted net income or loss per common share for the periods Net Income (Loss) Per Common Share (Three Months Ended Sep 30) | Metric | Sep 30, 2024 | Sep 30, 2023 | | :------------------------------------------ | :----------- | :----------- | | Basic EPS | $0.40 | $3.75 | | Diluted EPS | $0.40 | $3.74 | Net Income (Loss) Per Common Share (Nine Months Ended Sep 30) | Metric | Sep 30, 2024 | Sep 30, 2023 | | :------------------------------------------ | :----------- | :----------- | | Basic EPS | $(2.27) | $11.11 | | Diluted EPS | $(2.27) | $11.10 | [14. INCOME TAXES](index=33&type=section&id=14.%20INCOME%20TAXES) This section provides information on the company's income tax provisions and unrecognized tax benefits - Gross unrecognized income tax benefits were **$398.5 million** at September 30, 2024, compared to **$351.2 million** at December 31, 2023[114](index=114&type=chunk) - A favorable tax ruling in Brazil resulted in a **$31.7 million** reduction in the provision for income taxes during the nine months ended September 30, 2024[118](index=118&type=chunk)[174](index=174&type=chunk) - Accrued interest and penalties related to unrecognized tax benefits totaled **$32.8 million** at September 30, 2024[115](index=115&type=chunk) [15. PENSION AND POSTRETIREMENT BENEFIT PLANS](index=34&type=section&id=15.%20PENSION%20AND%20POSTRETIREMENT%20BENEFIT%20PLANS) This section outlines the company's pension and postretirement benefit plan costs and contributions Net Periodic Pension Cost (Nine Months Ended Sep 30) | Metric | Sep 30, 2024 (Millions $) | Sep 30, 2023 (Millions $) | | :------------------------------------------ | :------------------------ | :------------------------ | | Service cost | 6.2 | 7.2 | | Interest cost | 20.9 | 22.0 | | Expected return on plan assets | (23.1) | (22.1) | | Amortization of net actuarial losses | 6.7 | 6.4 | | Amortization of prior service cost | 1.1 | 1.0 | | **Net periodic pension cost** | **11.8** | **14.5** | Net Periodic Postretirement Benefit Cost (Nine Months Ended Sep 30) | Metric | Sep 30, 2024 (Millions $) | Sep 30, 2023 (Millions $) | | :------------------------------------------ | :------------------------ | :------------------------ | | Service cost | 0.1 | — | | Interest cost | 1.2 | 1.0 | | Amortization of prior service cost | 0.1 | 0.1 | | **Net periodic postretirement benefit cost** | **1.4** | **1.1** | - Contributions to defined pension benefit plans for the nine months ended September 30, 2024, were approximately **$22.0 million**, with estimated minimum contributions for 2024 aggregating to **$25.4 million**[122](index=122&type=chunk) [16. FAIR VALUE OF FINANCIAL INSTRUMENTS](index=35&type=section&id=16.%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) This section presents the fair value measurements of the company's financial instruments - The Company categorizes its assets and liabilities into a three-level fair value hierarchy based on the observability of inputs used in valuation techniques[124](index=124&type=chunk) Fair Value of Derivative Instruments (as of September 30, 2024) | Category | Level 1 (Millions $) | Level 2 (Millions $) | Level 3 (Millions $) | Total (Millions $) | | :-------------------------- | :------------------- | :------------------- | :------------------- | :----------------- | | Derivative assets | — | 25.8 | — | 25.8 | | Derivative liabilities | — | 10.5 | — | 10.5 | Estimated Fair Value of Senior Notes (as of September 30, 2024) | Debt Instrument | Carrying Value (Millions $) | Estimated Fair Value (Millions $) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | 0.800% Senior notes due 2028 | 670.2 | 608.2 | | 5.450% Senior notes due 2027 | 400.0 | 408.2 | | 5.800% Senior notes due 2034 | 700.0 | 732.1 | [17. COMMITMENTS AND CONTINGENCIES](index=36&type=section&id=17.%20COMMITMENTS%20AND%20CONTINGENCIES) This section details the company's lease commitments, guarantees, and legal contingencies Lease Payments (Operating Leases with >1 year remaining term, as of September 30, 2024) | Year | Operating Leases (Millions $) | Finance Leases (Millions $) | | :-------------------------- | :---------------------------- | :-------------------------- | | 2024 | 15.3 | 0.2 | | 2025 | 55.5 | 0.7 | | 2026 | 44.4 | 0.5 | | 2027 | 29.0 | 0.5 | | 2028 | 21.5 | 0.3 | | Thereafter | 50.1 | 5.8 | | **Total lease payments** | **215.8** | **8.0** | - Outstanding guarantees to AGCO Capital (Argentine finance joint venture) totaled approximately **$60.5 million**[128](index=128&type=chunk)[217](index=217&type=chunk) - Accrued guarantees of residual values to U.S. and Canadian finance joint ventures were approximately **$13.0 million**, with a maximum potential future payment of **$193.1 million**[128](index=128&type=chunk)[217](index=217&type=chunk) - An ongoing patent infringement lawsuit with Deere & Company regarding Precision Planting is awaiting oral arguments on appeal, with AGCO having an indemnity right from the previous owner[130](index=130&type=chunk)[218](index=218&type=chunk) [18. REVENUE](index=37&type=section&id=18.%20REVENUE) This section provides disaggregated revenue information by product, geography, and contract liabilities - Contract liabilities relate to unrecognized revenues from extended warranty, maintenance, grain storage, protein production systems, and precision agriculture technology services[132](index=132&type=chunk) Contract Liabilities Balance (Nine Months Ended Sep 30, 2024 vs. 2023) | Metric | Sep 30, 2024 (Millions $) | Sep 30, 2023 (Millions $) | | :------------------------------------------ | :------------------------ | :------------------------ | | Balance at beginning of period | 310.7 | 239.0 | | Advance consideration received | 156.4 | 164.2 | | Revenue recognized during the period | (133.4) | (117.5) | | **Balance at September 30** | **346.6** | **284.6** | - Estimated future revenues from remaining performance obligations are **$47.3 million** for the remainder of 2024, and **$117.4 million** in 2025, primarily from extended warranty contracts[136](index=136&type=chunk) Disaggregated Net Sales by Geographical Market (Three Months Ended Sep 30, 2024) | Region | Net Sales (Millions $) | | :-------------------------- | :--------------------- | | North America | 736.1 | | South America | 381.6 | | Europe/Middle East | 1,298.2 | | Asia/Pacific/Africa | 183.4 | | **Consolidated Total** | **2,599.3** | Disaggregated Net Sales by Major Products (Nine Months Ended Sep 30, 2024) | Product | Net Sales (Millions $) | | :------------------------------------------ | :--------------------- | | Tractors | 5,064.6 | | Replacement parts | 1,410.0 | | Grain storage and protein production systems | 756.8 | | Combines, application equipment and other machinery | 1,543.2 | | **Consolidated Total** | **8,774.6** | [19. SEGMENT REPORTING](index=44&type=section&id=19.%20SEGMENT%20REPORTING) This section presents financial data for the company's reportable operating segments - The Company operates in four reportable segments: North America, South America, Europe/Middle East (EME), and Asia/Pacific/Africa (APA), with performance evaluated primarily based on income from operations[146](index=146&type=chunk)[177](index=177&type=chunk) Segment Net Sales and Income from Operations (Three Months Ended Sep 30, 2024 vs. 2023) | Segment | Net Sales 2024 (Millions $) | Net Sales 2023 (Millions $) | Income from Operations 2024 (Millions $) | Income from Operations 2023 (Millions $) | | :------------------ | :-------------------------- | :-------------------------- | :--------------------------------------- | :--------------------------------------- | | North America | 736.1 | 941.1 | 52.7 | 139.8 | | South America | 381.6 | 719.8 | 45.1 | 149.8 | | Europe/Middle East | 1,298.2 | 1,586.9 | 83.0 | 199.3 | | Asia/Pacific/Africa | 183.4 | 207.7 | 7.0 | 19.2 | | **Total Segments** | **2,599.3** | **3,455.5** | **187.8** | **508.1** | Segment Net Sales and Income from Operations (Nine Months Ended Sep 30, 2024 vs. 2023) | Segment | Net Sales 2024 (Millions $) | Net Sales 2023 (Millions $) | Income from Operations 2024 (Millions $) | Income from Operations 2023 (Millions $) | | :------------------ | :-------------------------- | :-------------------------- | :--------------------------------------- | :--------------------------------------- | | North America | 2,303.5 | 2,861.0 | 171.8 | 378.8 | | South America | 1,033.9 | 1,822.2 | 73.9 | 370.7 | | Europe/Middle East | 4,930.1 | 5,281.5 | 654.4 | 733.9 | | Asia/Pacific/Africa | 507.1 | 647.0 | 27.4 | 58.2 | | **Total Segments** | **8,774.6** | **10,611.7** | **927.5** | **1,541.6** | Reconciliation of Segment Income to Consolidated Income (Nine Months Ended Sep 30, 2024) | Item | Amount (Millions $) | | :------------------------------------------ | :------------------ | | Segment income from operations | 927.5 | | Impairment charges | (5.3) | | Loss on business held for sale | (497.8) | | Corporate expenses | (161.2) | | Amortization of intangibles | (54.4) | | Stock compensation expense | (20.4) | | Restructuring and business optimization expenses | (41.7) | | **Consolidated income from operations** | **146.7** | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=46&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's discussion and analysis of financial condition and results of operations [GENERAL](index=46&type=section&id=GENERAL) This section provides an overview of AGCO's operations, industry context, and recent strategic transactions - AGCO's operations are subject to the cyclical and seasonal nature of the agricultural industry, influenced by factors such as farm income, financing costs, weather conditions, and commodity prices[153](index=153&type=chunk) - On April 1, 2024, AGCO completed the acquisition of an **85%** interest in PTx Trimble, a joint venture aimed at creating a global-leading mixed-fleet precision agriculture platform[154](index=154&type=chunk) - On July 25, 2024, AGCO entered into an agreement to sell the majority of its Grain & Protein (G&P) business for **$700.0 million**, which closed on November 1, 2024, aligning with AGCO's strategic transformation[155](index=155&type=chunk) [RESULTS OF OPERATIONS](index=47&type=section&id=RESULTS%20OF%20OPERATIONS) This section discusses the company's financial performance, including sales, profit, and expense trends - Net income attributable to AGCO Corporation and subsidiaries for the three months ended September 30, 2024, was **$30.0 million** (**$0.40** diluted EPS), a significant decrease from **$280.6 million** (**$3.74** diluted EPS) in the prior year[160](index=160&type=chunk) - Net sales decreased by **24.8%** for the three months and **17.3%** for the nine months ended September 30, 2024, primarily due to lower sales volumes from softer end market demand and unfavorable currency impacts[161](index=161&type=chunk)[162](index=162&type=chunk) - Income from operations decreased significantly, driven by lower sales and production volumes, a **$497.8 million** loss on the G&P business held for sale, increased restructuring expenses, and higher SG&A expenses[161](index=161&type=chunk)[162](index=162&type=chunk)[170](index=170&type=chunk) - Gross profit as a percentage of net sales decreased for both periods due to lower production volumes and unfavorable net pricing impacts[165](index=165&type=chunk) - Interest expense, net, increased significantly to **$33.9 million** (three months) and **$65.7 million** (nine months) in 2024, primarily due to increased debt levels related to financing the PTx Trimble joint venture transaction[171](index=171&type=chunk) - A favorable tax ruling in Brazil resulted in a **$31.7 million** reduction in the income tax provision during the nine months ended September 30, 2024[174](index=174&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=53&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section analyzes the company's cash flows, debt, and ability to meet its financial obligations Available Borrowings and Facilities (as of September 30, 2024) | Facility | Amount (Millions $) | | :------------------------------------------ | :------------------ | | Credit facility, expires 2027 | 790.0 | | Term Loan Facility borrowings | 500.0 | | 5.450% Senior notes due 2027 | 400.0 | | 5.800% Senior notes due 2034 | 700.0 | | 0.800% Senior notes due 2028 | 670.2 | | 1.002% EIB Senior term loan due 2025 | 279.3 | | EIB Senior term loan due 2029 | 279.3 | | EIB Senior term loan due 2030 | 189.9 | | Senior term loans due between 2025 and 2028 | 163.7 | | Other long-term debt | 1.1 | - On November 1, 2024, the Company repaid the **$500.0 million** Term Loan Facility and **$150.0 million** Credit Facility utilizing proceeds from the sale of the G&P business[200](index=200&type=chunk) - The debt to capitalization ratio increased to **48.8%** at September 30, 2024, from **23.0%** at December 31, 2023, primarily due to indebtedness incurred for the PTx Trimble joint venture transaction[202](index=202&type=chunk) - Cash flows used in operating activities were **$108.0 million** for the first nine months of 2024, a decrease from **$202.7 million** provided in the same period of 2023, primarily due to a decrease in net income[213](index=213&type=chunk) [COMMITMENTS, OFF-BALANCE SHEET ARRANGEMENTS AND CONTINGENCIES](index=57&type=section&id=COMMITMENTS,%20OFF-BALANCE%20SHEET%20ARRANGEMENTS%20AND%20CONTINGENCIES) This section details the company's various commitments, off-balance sheet arrangements, and potential liabilities - Outstanding guarantees to AGCO Capital (Argentine finance joint venture) totaled approximately **$60.5 million**[217](index=217&type=chunk) - Accrued guarantees of residual values to U.S. and Canadian finance joint ventures were approximately **$13.0 million**, with a maximum potential future payment of **$193.1 million**[217](index=217&type=chunk) - The Company is involved in an ongoing patent infringement lawsuit with Deere & Company regarding Precision Planting, with an indemnity right from the previous owner[218](index=218&type=chunk) [OUTLOOK](index=58&type=section&id=OUTLOOK) This section provides the company's forward-looking expectations regarding industry demand and financial performance - Global industry demand for farm equipment has declined in 2024 compared to 2023 due to lower farm income[222](index=222&type=chunk) - AGCO's net sales are expected to decrease in 2024 due to lower sales volumes, and operating margins are expected to decrease from 2023 levels[222](index=222&type=chunk) - The outlook is based on current assumptions regarding demand, currency stability, pricing, and market share gains, with potential adverse impacts from incorrect assumptions or supply chain issues[223](index=223&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=58&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) This section highlights the key accounting policies and estimates requiring significant management judgment - The preparation of financial statements requires management to make estimates and judgments that affect reported amounts of assets, liabilities, revenues, and expenses[224](index=224&type=chunk) - Key estimates include discount and sales incentive allowances, deferred income taxes, pensions, goodwill, other intangible and long-lived assets, and recoverable indirect taxes[224](index=224&type=chunk) [FORWARD-LOOKING STATEMENTS](index=58&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section cautions about risks and uncertainties that may cause actual results to differ from expectations - Forward-looking statements involve risks and uncertainties, and actual results may differ materially from expectations[225](index=225&type=chunk)[226](index=226&type=chunk) - Adverse changes in factors such as general economic conditions, credit availability, demand for agricultural products, raw material costs, government policies, and supply chain disruptions could impact results[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk) - The Company's substantial indebtedness subjects it to restrictive covenants and payment obligations that may affect its ability to operate and expand[229](index=229&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=60&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section refers to the Company's Annual Report on Form 10-K for detailed disclosures on market risks - There has been no material change in the Company's exposure to market risks as of the third quarter of 2024[231](index=231&type=chunk) - For quantitative and qualitative disclosures about market risks, refer to Item 7A of Part II of the Annual Report on Form 10-K for the year ended December 31, 2023[231](index=231&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=60&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section confirms the effectiveness of the Company's disclosure controls and procedures and internal controls - The Company's disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2024[232](index=232&type=chunk) - The internal controls over financial reporting of the PTx Trimble joint venture were excluded from management's assessment due to its recent acquisition on April 1, 2024, in accordance with SEC Staff's general guidance[234](index=234&type=chunk) - No changes in internal control over financial reporting materially affected or are reasonably likely to materially affect the Company's internal control over financial reporting during the three months ended September 30, 2024[235](index=235&type=chunk) PART II. OTHER INFORMATION This section presents additional information not covered in the financial statements, including legal, risk, and exhibit details [ITEM 1. LEGAL PROCEEDINGS](index=61&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to the notes to financial statements for details on legal claims and actions - Legal claims and actions incidental to the Company's business are more fully discussed in Note 17 to the Condensed Consolidated Financial Statements[237](index=237&type=chunk) [ITEM 1A. RISK FACTORS](index=61&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section supplements the risk factors disclosed in the Company's Annual Report on Form 10-K - The information supplements the risks and uncertainties disclosed under 'Risk Factors' in Item 1A of Part I of the Annual Report on Form 10-K for the year ended December 31, 2023[238](index=238&type=chunk) - Actions of activist stockholders could divert management's attention, disrupt operations, interfere with strategic plans, and negatively impact the Company's stock price and ability to attract and retain qualified personnel[239](index=239&type=chunk)[240](index=240&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=61&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section states no purchases of the Company's common stock during the three months ended September 30, 2024 - There were no purchases of the Company's common stock made by or on behalf of the Company during the three months ended September 30, 2024[241](index=241&type=chunk) [ITEM 5. OTHER INFORMATION](index=61&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section confirms no directors or officers adopted or terminated Rule 10b5-1 trading arrangements - None of the Company's directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended September 30, 2024[242](index=242&type=chunk) [ITEM 6. EXHIBITS](index=62&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Quarterly Report on Form 10-Q - The Quarterly Report includes unaudited financial information formatted in Inline XBRL, covering Condensed Consolidated Balance Sheets, Statements of Operations, Comprehensive Income, Cash Flows, and Notes to Condensed Consolidated Financial Statements[244](index=244&type=chunk) - Key exhibits include the Purchase Agreement for the G&P business, the 2006 Long-Term Incentive Plan, Subsidiary Guarantors, and certifications from the CEO and CFO[245](index=245&type=chunk) [SIGNATURES](index=63&type=section&id=SIGNATURES) This section contains the official signatures for the report - The report was signed on November 7, 2024, by Damon Audia, Senior Vice President and Chief Financial Officer, and Indira Agarwal, Vice President, Chief Accounting Officer[247](index=247&type=chunk)

AGCO Corporation (NYSE:AGCO) Q3 2024 Earnings Conference Call November 5, 2024 10:00 AM ET Company Participants Greg Peterson - Head of IR Eric Hansotia - Chairman, President and CEO Damon Audia - SVP, CFO Conference Call Participants Jamie Cook - Truist Securities Kristen Owen - Oppenheimer Stephen Volkmann - Jefferies Joel Jackson - BMO Capital Markets Mig Dobre - RW Baird Tami Zakaria - J.P. Morgan Operator Good day, and welcome to the AGCO Third Quarter 2024 Earnings Call. All participants will be in a ...

Agco (AGCO) reported $2.6 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 24.8%. EPS of $0.68 for the same period compares to $3.97 a year ago.The reported revenue represents a surprise of -10.37% over the Zacks Consensus Estimate of $2.9 billion. With the consensus EPS estimate being $1.07, the EPS surprise was -36.45%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Company Performance - Agco reported quarterly earnings of $0.68 per share, missing the Zacks Consensus Estimate of $1.07 per share, and a significant decline from $3.97 per share a year ago, representing an earnings surprise of -36.45% [1] - The company posted revenues of $2.6 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 10.37%, and down from $3.46 billion year-over-year [2] - Over the last four quarters, Agco has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Outlook - Agco shares have declined approximately 19.4% since the beginning of the year, contrasting with the S&P 500's gain of 19.8% [3] - The current consensus EPS estimate for the upcoming quarter is $1.91 on revenues of $3.37 billion, and for the current fiscal year, it is $7.87 on revenues of $12.45 billion [7] Industry Context - The Manufacturing - Farm Equipment industry, to which Agco belongs, is currently ranked in the bottom 10% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1, highlighting the potential impact of industry performance on Agco's stock [8]

THIRD QUARTER 2024 Financial and Operational Results November 5, 2024 2 SAFE HARBOR Forward-looking statements in this presentation, including statements about our strategic plans and initiatives as well as their financial impacts, demand, product development and capital expenditure plans and timing of those plans and our expectations with respect to the costs and benefits of those plans and timing of those benefits, future revenue, crop production and farm income, production levels, price levels, margins, ...

Exhibit 99.1 NEWS RELEASE | --- | --- | |----------------------------------------------|-------------------------------------------------------| | | For Immediate Release | | | Tuesday November 5, 2024 | | INVESTOR CONTACT: | MEDIA CONTACT: | | Greg Peterson VP, Investor Relations | Rachel Potts VP, Chief Communications Officer | | 404-403-6042 | 678-654-7719 | | greg.peterson@agcocorp.com | rachel.potts@agcocorp.com | AGCO REPORTS THIRD-QUARTER RESULTS • Net sales of $2.6 billion, down 24.8% year-over-year ...

Net sales of $2.6 billion, down 24.8% year-over-year Reported earnings per share of $0.40 and adjusted earnings per share(1) of $0.68 Reaffirms full-year adjusted operating margin target of 9% Revised 2024 sales and earnings per share outlook reflects the Grain and Protein divestitureDULUTH, Ga., Nov. 5, 2024 /PRNewswire/ -- AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, reported net sales of $2.6 billion for the third q ...

Core Insights - AGCO Agriculture Foundation donated USD $50,000 to support the Hurricane Relief Fund for Georgia farmers affected by Hurricane Helene [1][2] - The Hurricane Relief Fund aims to raise a total of $1 million to provide immediate assistance to farmers, with all donations going directly to those in need [3] Company Overview - AGCO Corporation is a global leader in agricultural machinery and precision ag technology, with net sales of approximately $14.4 billion in 2023 [4] - The AGCO Agriculture Foundation, established in 2018, focuses on preventing hunger and supporting sustainable agricultural development [5]

TORONTO, Nov. 01, 2024 (GLOBE NEWSWIRE) -- To protect the wellbeing and safety of horses and safeguard the integrity of horse racing, the Alcohol and Gaming Commission of Ontario (AGCO) has issued monetary penalties and suspensions to Standardbred trainer, Richard Moreau, and driver, Sylvain Filion. Both are found to have violated the AGCO’s Rules of Standardbred Racing. The AGCO received a Certificate of Analysis confirming the presence of the non-therapeutic drug darbepoetin alfa (DPO) for the horse FUNTI ...