AGCO, (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, reported net sales of $2.1 billion for the third quarter of 2011, an increase of 26.7% compared to net sales of $1.7 billion for the third quarter of 2010. Reported and adjusted net income was $0.87 per share for the third quarter of 2011. These results compare to reported net income of $0.65 per share and adjusted net income, excluding restructuring and other infrequent expenses, of $0.66 per share for the third quarter of 2010.

Excluding favorable currency translation impacts of 7.3%, net sales in the third quarter of 2011 increased 19.4% compared to the same period in 2010. Net sales for the first nine months of 2011 were $6.3 billion, an increase of approximately

32.3% compared to the same period in 2010. Excluding the favorable impact of currency translation of approximately 8.2%, net sales for the first nine months of 2011 increased approximately 24.1% compared to the same period in 2010.

For the first nine months of 2011, reported and adjusted net income were $3.04 per share. These results compare to reported net income of $1.41 per share and adjusted net income, excluding restructuring and other infrequent expenses, of $1.43 per share for the first nine months of 2010.

“AGCO’s third quarter sales growth exceeded 20% for the third consecutive quarter, and our cost-focused initiatives produced improved operating margins,” says Martin Richenhagen, chairman, president and chief executive officer. “Attractive farm economics are supporting robust global demand for agricultural equipment, and our third quarter sales were strong across all regions. AGCO’s Europe/Africa/Middle East (EAME) business delivered exceptional performance in the third quarter.

“With industry demand below peak levels in Western Europe, our EAME region produced record third quarter sales on a constant currency basis. Operating margins improved by over 350 basis points compared to the third quarter of 2010. In addition, AGCO’s free cash flow for the first nine months of 2011 improved over $150 million from the same period in 2010. Our profitability and cash flow are improving, while at the same time we are investing more in our products and plants.

“Our strategic investments remain focused on improving our margins and growing our business organically. We are also expanding the range of products and services we provide to our farming customers as evidenced by our announced agreement to purchase GSI Holdings. This acquisition provides AGCO a leading position in the grain storage and protein production segments and allows us to further benefit from increases in global grain and food demand.

“AGCO’s balance sheet also remains strong. Since the acquisition was announced, AGCO’s corporate credit ratings have been re-affirmed by the credit rating agencies. GSI’s track record of strong profitably and cash generation improves AGCO’s capacity for investments to support the long-term growth of our business.”

The combination of increased production levels in Europe and North America, pricing and a richer product mix, partially offset by higher material costs, resulted in improved gross margins. Investments in new product development resulted in increased engineering expenses in the third quarter of 2011 compared to the same period last year. Income from operations for the first nine months of 2011 increased approximately $242.8 million compared to the same period in 2010 also due to an increase in sales and margin improvement.

Market Update

Industry Unit Retail Sales — Nine months ended September 30, 2011

Despite uneven weather patterns in North America during the growing season, projected record farm income levels have supported industry demand in North America resulting in strong industry retail sales of tractors and combines. Industry unit retail sales of tractors were up slightly, while industry retail sales of combines were down modestly in the first nine months of 2011 compared to relatively high levels during the same period in 2010.

Improvement in the dairy and livestock sector contributed to higher industry unit retail sales of mid-range tractors and hay equipment, both of which increased compared to 2010 levels.

Capitalizing on strong industry conditions, AGCO’s North American sales increased approximately 12.6% in the first nine months of 2011 compared to the first nine months of 2010, excluding the impact of favorable currency translation. Combines, implements and high horsepower tractors all contributed to the sales growth. Higher sales, the benefit of increased production, and cost control initiatives combined to produce growth in income from operations of $33.7 million during the first nine months of 2011 compared to the same period in 2010.

North American net sales for the quarter came in at $417.7 million, up 11.9%. For the nine month period, net sales came in at $1,171.9 billion, up 14.2%.

Outlook

Higher grain prices driven by globally tight supplies combined with increasing demand from emerging markets and a limited supply of arable land are expected to produce global growth in farm equipment sales in 2011. Strong order backlogs support the expectation that positive year-to-date trends will continue for the balance of the year.

AGCO is targeting reported and adjusted earnings per share of approximately $4.30 for the full year of 2011. Net sales are expected to range from $8.7 billion to $8.8 billion. For the fourth quarter and full year, 2011 operating margins are expected to improve over 2010 levels.