DULUTH, Ga. — AGCO reported net sales of approximately $2.1 billion for the second quarter of 2015, a decrease of approximately 24.8% compared to net sales of approximately $2.8 billion for the second quarter of 2014. Reported net income was $1.22 per share and adjusted net income, excluding restructuring and other infrequent expenses, was $1.25 per share for the second quarter of 2015. These results compare to reported and adjusted net income per share of $1.77 for the second quarter of 2014. Excluding unfavorable currency translation impacts of approximately 13.8%, net sales in the second quarter of 2015 decreased approximately 10.9% compared to the second quarter of 2014.

Net sales for the first 6 months of 2015 were approximately $3.8 billion, a decrease of approximately 25.8% compared to the same period in 2014. Excluding the unfavorable impact of currency translation of approximately 12.9%, net sales for the first six months of 2015 decreased approximately 13% compared to the same period in 2014. For the first 6 months of 2015, reported net income was $1.55 per share and adjusted net income, excluding restructuring and other infrequent expenses, was $1.67 per share. These results compare to reported and adjusted net income of $2.79 per share for the first 6 months of 2014.

Second Quarter Highlights

• Regional sales results(1): North America (15.8)%, Europe/Africa/Middle East (“EAME”) (8.5)%, South America (14.2)%, Asia/Pacific (“APAC”) (0.5)%
• Regional operating margin performance: EAME 11.8%, North America 10.3%, South America 5.4%, APAC (12.2)%
• Inventory at June 30, 2015: approximately $245 million lower than June 30, 2014 on a constant currency basis(1)
• Operating expenses: 7.3% below 2014 levels on a constant currency basis(1)
• EPS positively impacted by a lower effective tax rate vs. second quarter 2014 (29.4% vs 34.9%)
• Share repurchase program reduced outstanding shares by 2.2 million during the first half of 2015
• Full-year 2015 earnings per share guidance increased to approximately $3.10 (from approximately $3.00)

(1)Excludes currency translation impact. See reconciliation of Non-GAAP measures in appendix.

“Our second quarter results reflect the significant challenges caused by weaker global industry demand and currency headwinds,” stated Martin Richenhagen, AGCO’s chairman, president and chief executive officer. “AGCO’s performance demonstrates our ability to deliver solid results in a weaker industry environment. The quarter was highlighted by the successful reduction of our expenses and company inventories. By reducing production hours approximately 22% compared to the second quarter of 2014, our June 2015 inventory levels were substantially lower than our position at June 2014. In addition, our expense reduction actions have been largely completed resulting in lower factory overheads and selling, general and administrative expenses compared to a year ago. Improving our products and service levels for our customers remains a top priority. These improvements and a successful release of many new products with advanced technologies have been well received by our customers, making AGCO very competitive in the market.”

Market Update — Industry Unit Retail Sales

(1)Excludes compact tractors.

“During the first half of 2015, lower commodity prices and the expectation of reduced farm income have pressured global sales of farm equipment,” continued Mr. Richenhagen. “Grain prices continue to be highly sensitive to 2015 crop production forecasts and will likely remain volatile throughout the growing season. Industry retail sales in North America declined with a significant drop in high-horsepower tractors, combines and sprayers. Growth in hay and forage equipment and small tractors, due to healthy conditions in the livestock sector, has provided a partial offset to the decline in large agricultural equipment. In Western Europe, margins for dairy producers remained weak and lower commodity prices kept market demand soft from the row crop segment. Industry sales declines were most pronounced in the United Kingdom, Finland, France and Germany. Reduced industry sales in South America were the result of lower demand in Brazil due to softness in the sugar sector, weakness in the general economy and changes to the government financing program. Our long-term view remains optimistic with expanding demand for grain supporting farm economics and healthy growth in our industry.”

Regional Results

AGCO Regional Net Sales (in millions)

(1) See Footnotes for additional disclosures

North America

AGCO’s North American net sales decreased 20.5% in the first half of 2015 compared to the same period of 2014, excluding the negative impact of currency translation. Inventory reduction efforts and weaker industry demand, particularly from the row-crop sector, contributed to lower sales. Declines in sales of sprayers, high horsepower tractors and grain storage were partially offset by modest growth in protein production products. Lower sales and production volumes and a weaker sales mix contributed to a reduction in income from operations of approximately $75.5 million for the first half of 2015 compared to the same period in 2014.

South America

Net sales in the South American region decreased 14.3% in the first 6 months of 2015 compared to the first half of 2014, excluding the impact of unfavorable currency translation. Sales declines in Brazil were partially offset by sales growth in Argentina and other South American markets. Income from operations decreased approximately $29.5 million for the first half of 2015 compared to the same period in 2014 due to lower sales and production volumes, as well as a weaker mix of sales.

Europe/Africa/Middle East

Net sales in EAME, excluding the negative impact of currency translation, declined 9.3% in the first half of 2015 compared to the same period in 2014. Sales declines were the largest in Germany, Scandinavia and Russia. Income from operations decreased approximately $93.9 million for the first half of 2015, compared to the same period in 2014, due to lower sales and production volumes as well as unfavorable currency translation. These headwinds were partially offset by the benefits of operational efficiencies, SG&A cost reduction initiatives and new product sales.

Asia/Pacific

Excluding unfavorable currency translation impacts, net sales decreased 7.4% in AGCO’s Asia/Pacific region in the first 6 months of 2015 compared to the same period in 2014. Income from operations declined approximately $18.3 million in the first half of 2015, compared to the same period in 2014, due to lower sales and increased market development costs in China.

Outlook

Weaker global demand for agricultural equipment and the unfavorable effect of foreign currency translation are expected to negatively impact AGCO’s sales and earnings in 2015. AGCO’s net sales for 2015 are expected to range from $7.7 to $7.9 billion. Gross and operating margins are expected to be below 2014 levels due to the negative impact of lower sales and production volumes along with a weaker sales mix. Benefits from the company’s restructuring and other cost reduction initiatives and a lower tax rate are expected to partially offset the volume-related impacts. Based on these assumptions, 2015 earnings per share are targeted at approximately $3.10, excluding restructuring and other infrequent expenses.