AGCO reported net sales of approximately $1.8 billion for the second quarter of 2009, a decrease of approximately 25%, compared to net sales of approximately $2.4 billion for the second quarter of 2008. Net income per share was $0.61 for the second quarter of 2009 and adjusted net income, which excludes restructuring and other infrequent expenses, was $0.64 per share for the second quarter of 2009. These results compare to reported and adjusted net income of $1.31 per share for the second quarter of 2008. Excluding unfavorable currency translation impacts of approximately 10.8%, net sales in the second quarter of 2009 decreased approximately 14.2% compared to the same period in 2008.

Net sales for the first six months of 2009 were $3.4 billion, a decrease of approximately 19.3%, compared to the same period in 2008. Excluding the unfavorable impact of currency translation of approximately 12.4%, net sales for the first six months of 2009 decreased approximately 6.9% compared to the same period in 2008. For the first six months of 2009, net income was $0.98 per share and adjusted net income, excluding restructuring and other infrequent expenses, was $1.00 per share. These results compare to reported and adjusted net income of $1.90 per share for the first six months of 2008.

"The global recession had a major impact on farmer sentiment in the second quarter of 2009, and with the accompanying constrained credit environment, demand for agricultural equipment softened across the end markets in North America, Europe and South America," stated Martin Richenhagen, AGCO's chairman, president and CEO. "We experienced weakening order trends throughout the second quarter. In response to the decreased order volume, the company launched a series of operational and financial actions aimed at cutting production, lowering inventory levels, reducing operating expenses and generating cash flow. We will maintain these priorities during the third and fourth quarters."

In AGCO's North American region, stronger sales of high horsepower tractors, balers and implements were offset by weaker sales of lower horsepower tractors. In the second quarter of 2009, income from operations grew approximately $25.9 million compared to the same period in 2008. Results benefited from new products, reduced warranty expense, positive currency impacts on imported products sold in North America and cost control initiatives, partially offset by higher levels of engineering costs.

Overall, North American net sales slipped only 4.3% compared with the same period in 2008, and were up 0.7% through the first 6 months of 2009 compared to the first-half of 2008.