DULUTH, GEORGIA, US — AGCO saw net income increase in the third quarter ended Sept. 30 to $237.9 million, up from $182.4 million in the same period a year ago.

The company also reported record sales of $3.1 billion, up 14.5% compared to the same quarter a year ago.

 “We delivered record third quarter sales and earnings driven through the consistent execution of our farmer-first strategy, coupled with continued robust market conditions in many of our regions,” said Eric Hansotia, AGCO’s chairman, president and chief executive officer. “Our solid operational performance and continued strong pricing overcame ongoing supply chain challenges, inflationary pressures and significant currency headwinds. Healthy farm fundamentals are supporting order boards that now stretch well into 2023 in some regions. The success of our farmer-first strategy, focused on growing our precision ag business, globalizing a full-line of our Fendt branded products and expanding our parts and service business, is generating strong growth in these margin-rich businesses.

“Global market conditions remain positive as favorable farm economics are allowing farmers to upgrade and replace their aging fleets. At the same time, our smart technology product lines are in strong demand and are helping to drive meaningful productivity improvements for our customers through both retrofitting their current equipment and in our new product offerings. We will continue to accelerate investments in premium technology, smart farming solutions and enhanced digital capabilities to support our farmer-first strategy while helping to sustainably feed the world.”

 Net sales for the first nine months of 2022 were approximately $8.8 billion, an increase of approximately 9.6% compared to the same period in 2021.

 For the first nine months of 2022, reported net income was $7.58 per share, and adjusted net income, excluding impairment charges, restructuring expenses and other related items, was $7.95 per share. These results compare to reported net income of $8.11 per share, and adjusted net income, excluding restructuring expenses and the reversal of a valuation allowance previously established against the company’s deferred tax assets in the US, of $7.30 per share for the first nine months of 2021.

 Healthy farm income is projected across most of the major agricultural production regions with elevated crop prices offsetting higher fuel, fertilizer and other input costs, Hansotia said.

 “Despite ongoing supply chain disruptions, favorable farm economics are expected to generate strong demand across all the major global markets well into 2023,” he said.

 AGCO is anticipating net sales for the year ranging from $12.5 billion to $12.6 billion.

Gross and operating margins are projected to improve from 2021 levels, reflecting the impact of higher sales and production volumes as well as favorable pricing to offset material and labor cost inflation

 AGCO is a global leader in the design, manufacture and distribution of agricultural equipment, and includes the GSI brand.