AGCO Corp.'s AGCO third-quarter profit rose 35% as the agricultural-equipment maker saw regional sales grow, especially in Europe, the Middle East and Africa.
The company also raised its full-year guidance to a profit of $4.30 a share on revenue of $8.7 billion to $8.8 billion, compared with its July forecast of $4 a share on revenue of $8.5 billion to $8.7 billion.
AGCO, whose brands include Massey Ferguson and Challenger, has had higher sales in recent quarters due to high commodities prices fattening farmers' bottom lines. This month, it said it agreed to buy GSI Holdings Corp., a grain-storage-equipment company, for $940 million, expanding AGCO's business beyond its core of farm tractors and combines.
AGCO reported a profit of $84.4 million, or 87 cents a share, up from $62.3 million, or 65 cents a share, a year earlier. Net sales rose 27% to $2.1 billion.
Analysts polled by Thomson Reuters most recently expected earnings of 75 cents a share on revenue of $2.02 billion.
Gross margin widened to 19.4% from 18.3%.
Sales in Europe, the Middle East and Africa, which account for the largest share of revenue, rose 49%, while North America sales rose 12%. South America sales were up 5.7%.
Shares were trading down 9 cents in the premarket at $41.50. As of Monday, the stock was down 18% year to date.
Post a comment
Report Abusive Comment