DULUTH, GEORGIA, US — Robust demand, healthy crop production, favorable farm economics and an improving supply chain generated record third-quarter results for AGCO, a global leader in design, manufacture and distribution of agricultural machinery and precision ag technology.

“The continued 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 and helping position AGCO for another record year,” said Eric Hansotia, AGCO’s chairman, president and chief executive officer.  

The company reported net sales of $3.5 billion for the quarter ended Sept. 30, an increase of 10.7% compared to the same quarter a year ago. Net income attributable to AGCO  and subsidiaries was $280.6 million, up from $237.9 million a year ago.

Net sales for the first nine months of 2023 were approximately $10.6 billion, an increase of 21.2% compared to the same period in 2022.

Net income attributable to AGCO and subsidiaries for the first nine months was $832.4 million, up from $567.4 in the same period a year ago.

“Increased crop production in the Northern hemisphere and strong yields in Brazil are driving higher grain inventories and weighing on commodity prices,” Hansotia said. “While still at supportive levels, the lower commodity prices and a fleet age that is now trending younger are causing farmers to become more selective about their equipment and technology investments.”

Global industry production and retail tractor sales were down modestly in the first nine months of 2023 compared to last year's elevated levels with lower sales of smaller equipment more than offsetting increased sales of larger equipment.

AGCO’s net sales for 2023 are expected to be approximately $14.7 billion, reflecting improved sales volumes and pricing.

Gross and operating margins are projected to improve from 2022 levels, reflecting the impact of higher sales and production volumes as well as pricing and a favorable sales mix. These improvements are expected to fund increases in engineering and other technology investments to support AGCO’s precision agriculture and digital initiatives.

Based on these assumptions, 2023 reported earnings per share are targeted at approximately $15.08 and adjusted earnings per share at approximately $15.75.

AGCO’s brands include Cimbria, a leading company within industrial processing, handling and storage of grain and seed, as well as animal feed, foodstuffs and other bulk products and GSI, providing integrated grain systems.