Agco posts quarterly profit
Agco Corp reported a higher-than-expected quarterly profit last Tuesday, sending its shares up in early trading as strong sales of its tractors and harvesters in Brazil offset weakness in Europe and North America.
The company also raised its 2010 sales outlook, saying it now expects revenue in the range of $6.6 billion to $6.8 billion, up from an earlier forecast of $6.4 billion to $6.6 billion.
Agco, which makes farm equipment under the Massey Ferguson, Challenger, Fendt and Valtra brand names, said it believed Europe and North America were stabilizing, but it still needed to reduce inventories in those markets by idling some facilities.
The temporary plant closings will hurt results this quarter, Agco said.
Agco reported a fourthquarter net profit of $33.5 million, or 35 cents a share, down from $98.5 million, or $1.05 a share, a year earlier. Excluding special items, earnings were 42 cents a share.
Sales fell 14.1 percent to $1.85 billion.
Analysts, on average, had expected the Duluth, Georgia-based company to report a profit before items of 31 cents a share, on sales of $1.69 billion, according to Thomson Reuters I/B/E/S. — DTN