AGCO reported its third quarter results on Nov. 4. Third quarter net sales dropped 24.8% to $2.6 billion. Meanwhile net sales for the first 9 months of the year came in at $8.8 billion — down 17.3% year-over-year.

Regionally, South American sales took the biggest hit in the first 9 months at down 42%, followed by North America at 20.4%. Europe/Middle East sales dropped 18.2% for the period and Asia/Pacific/Africa sales were down 11.7%.

J.P. Morgan analyst Tami Zakaria noted that management said the third quarter represented the largest year-over-year production cuts the company had taken in over a decade by at least 35%.

AGCO cut production guidance and sees underproduction likely through at least the first half of 2025, she said writing, "In efforts to manage inventory levels, AGCO cut global production by 35% in 3Q, which was 19% more than it anticipated. Notably, in South America the company cut production levels by >50% YoY in the quarter. Looking ahead, additional cuts are expected in 4Q and in 1H25 as FY production is now guided down ~25% vs. prior down 20-25%

Watch the full version of this episode of On The Record