AGCO net sales fell by over 23% last year to approximately US$7.5 billion. Down on 2014’s US$9.7 billion, and a big drop on the 2013 peak of US$10.7 billion, weakened demand for farm equipment contributed to lower sales across all major markets during 2015. Significantly lower industry retail sales of high-horsepower tractors, combines and sprayers, saw net sales in North America fall 16.3%, and the weakness in the Brazilian economy is largely blamed for the 21.8% decline in AGCO’s South American business. Closer to home, weaker tractor and machine sales in Germany, Finland, Africa, the UK and Scandinavia, were partially offset by growth in France and Turkey, and overall EAME (Europe, Africa and Middle East) net sales were down by ‘just’ 4% during 2015. The company expects the difficult global industry conditions to persist throughout this year, with farmers continuing to delay purchases and industry inventory levels being managed down. The weaker demand for farm equipment across all regions and the unfavourable effects of foreign currency translation are expected to negatively impact on the concern’s 2016 net sales which are forecast to decline to around US$7 billion (the lowest level in the past five years).
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