Falling European tractor sales hit Massey and Fendt
AGCO, the manufacturers of Massey Ferguson, Valtra and Fendt have reported net sales of approximately $1.7bn (€1.55bn) for the third quarter of 2015.
According to the US company, this represents a decrease of approximately 19.4% compared to net sales of $2.2bn (€2.01bn) for the third quarter of 2014.
The report also indicates that the company has experienced variation in the sales market, with sales rising by 3.7% in Europe, Africa and the Middle East (EAME).
But, despite the rise in value physical combine and tractor sales to Western Europe have dropped by 11% and 8% respectively for the first nine months of 2015, it says.
Furthermore, sales have dropped considerably in North America (3.7%), South America (23.8%) and the Asia/Pacific region (3.8%).
It also says the reported net income was $0.77/share (€0.70/share) for the third quarter of 2015, which compares to $0.71/share (€0.65/share) for the same period in 2014.
The company has reported net sales for the first nine months of the year of $5.5bn (€5.02bn), which is a decrease of approximately 23.9% compared to the same period in 2014.
However, when the impact of currency translation is removed this decrease stands at 10.4% for this period, says AGCO.
For the most part, the regional operating margin performance has been favorable with increases experienced in EAME 7.7%, North America 8.3%, South America 4.5% but there has been a drop in the Asia/Pacific region of 2.2%.
The company has also increased its full-year earnings/share to approximately $3.20/share (€2.92/share) which has increased by $3.10/share (€2.83/share).
According to AGCO’s Chairman, Martin Richenhagen, the company has lessened the impact of the of the weak global trade for machinery through cost control measures.
Our third quarter was highlighted by focused operational performance with cost control and inventory management efforts helping to lessen the impacts of weak global industry demand and currency pressures, said Richenhagen.
“Our emphasis during these challenging times is on operational execution through efforts like AGCO Production Systems and new product introductions like our new Valtra T-series and N-series tractors.
“We will continue to invest in new technologies, product innovation and new precision agriculture service capabilities – both within AGCO, and by partnering with leading technology companies,” he said.