“AGCO expects 2012 sales of $10.0-10.2 billion, with a 3.5% tailwind from pricing, which includes Tier 4, but a 5% negative impact from currency. Guidance also assumes a 50-75 bass points year-over-year improvement in operating margin,” Henry Kirn, UBS analyst, told investors following the AGCO investors’ meeting on Friday.
The company continues to see 10% operating margins as achievable by 2015. It also highlighted regional opportunities to grow sales in China, Russia, India and Africa (longer-term) given favorable secular trends.
AGCO introduced 2012 EPS guidance of $5 vs. UBS estimates of $4.80 and overall analysts’ consensus $4.68. According to Kirn, guidance assumes a 50-75bp year-over-year improvement in op. margin and a $0.45 EPS contribution from GSI.
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