AGCO reported net sales of $2.9 billion for its first quarter, a decrease of 12% year-over-year.

This was down 12% from over $3.3 billion in AGCO first quarter of 2023. Net sales from North America specifically brought in $730 million for the first quarter of 2024, down 21% from last year. AGCO reported that softer industry sales and lower end market demand were partially offset by positive pricing. Its most significant sales declines were in hay  equipment, mid-range tractor and combines.

By product segment, AGCO’s biggest sales decline in North America was in combines, application equipment and other machinery, which was down almost 30% to $254 million in the first quarter of this year. Tractor sales were down 19% year-over-year to $253 million and grain storage and protein production systems sales were down 13%. Replacement parts saw the smallest decline at 7.7%.

In a note to investors, J.P. Morgan's Tami Zakaria said production cuts and destocking continue, but AGCO's order books remain "relatively health." She continued, 

"Management noted that it is ‘aggressively’ managing dealer inventory to align with softening retail demand. By Q4, it expects production levels to match retail demand across regions, as it continues to destock the dealer channel."

AGCO's net sales for 2024, including the positive impact of its new joint venture with Trimble, are expected to be approximately $13.5 billion.