AGCO, a worldwide manufacturer and distributor of agricultural equipment and solutions based in Duluth, Georgia, reported net sales of $3.9 billion for the fourth quarter of 2022, an increase of 23.6% compared to the fourth quarter of 2021.
Reported net income was $4.29 per share for the fourth quarter of 2022, and adjusted net income, which excludes restructuring expenses and a charge related to the divestiture of a Russian joint venture, was $4.47 per share.
These results compare to reported net income of $3.75 per share and adjusted net income, which excludes restructuring expenses and the reversal of a valuation allowance previously established against the company’s deferred tax assets in Brazil, of $3.08 per share, for the fourth quarter of 2021. Excluding unfavorable currency translation impacts of 9.2%, net sales in the fourth quarter of 2022 increased 32.7% compared to the fourth quarter of 2021.
“Our record results in 2022, underscored by net sales of approximately $12.7 billion and adjusted operating margin of 10.3%, are the result of continued execution of our strategy,” stated Eric Hansotia, AGCO’s chairman, president and CEO. “Our performance was fueled by robust demand for our industry-leading products coupled with continued solid global industry demand. Our farmer-first focus was highlighted by our fourth quarter results that not only delivered record net sales and operating margin, but also generated substantial free cash flow. These results are further evidence that our precision ag technology and premier equipment are in high demand and are driving productivity improvements for our farmers while providing us margin-rich growth opportunities.”
Hansotia added, “For 2023, we expect continued sales growth and margin expansion as industry demand remains strong and our farmer-first strategy continues to gain traction. We assume global market conditions will remain healthy, as favorable farm economics allow farmers to continue to invest in new more productive equipment and technology upgrades. While improving, we expect supply chain pressures will persist, presenting challenges throughout the year. We remain focused on growing our high-margin precision ag business, globalizing the full-line of our Fendt branded products and expanding our parts and service business. We will continue to accelerate investments in premium technology, smart farming solutions and enhanced digital capabilities to support our farmer-first strategy while helping to sustainably feed the world.”
