Agco Corp.'s (AGCO) first-quarter earnings plunged 70% as sales
in North America and Europe continued to drag. Still, the
The company, whose brands include Massey Ferguson and
Challenger, has seen its bottom line hurt, particularly by weakness
in North America and Europe as crop volumes have fallen and farmers
remained wary of buying big-ticket items.
Profit fell to $10.1 million, or 10 cents a share, from $33.7
million, or 36 cents a share, a year earlier. The latest results
included 2 cents in charges. The company in March projected a loss
of up to 10 cents a share.
Revenue dropped 13% to $1.33 billion, or 22%, excluding currency
changes. Analysts polled by Thomson Reuters were expecting $1.34
billion.
Gross margin slid to 16.9% from 17.7%.
The bright spot was South America, where sales more than doubled
as unit sales of tractors climbed 53% and combines surged 59%.
The stock closed Monday at $39.77 and was inactive premarket. It
has gained 64% in the past year.
-By Matt Jarzemsky; Dow Jones Newswires; 212-416-2240,
matthew.jarzemsky@dowjones.com