Agco Corp.'s (AGCO) first-quarter earnings soared, topping its
own estimate as the farm machinery maker's sales rose 35%.
The company also raised its full-year forecast to earnings of
$3.50 to $3.75 a share on revenue of $8.3 billion to $8.5 billion
from its February estimate of earnings of $2.50 to $2.75 a share on
sales of $7.6 billion to $7.9 billion.
Shares jumped 6.9% premarket to $58.70. As of Monday's $54.91
close, the stock has risen 38% over the past year.
Chairman and Chief Executive Martin Richenhagen hinted earlier
this month that results could exceed the company's estimate as
rising prices for farm commodities should translate into higher
farm machinery sales.
Makers of tractors, combines and other gear have benefited from
high commodities prices fattening farmers' bottom lines. Agco,
whose brands include Massey Ferguson and Challenger, saw
end-of-year growth accelerate in Europe and North America amid more
muted expansion in South America, which had been a bright spot in
recent quarters.
Agco reported a profit of $80 million, or 81 cents a share, up
from $10.1 million, or 10 cents a share, a year earlier. Excluding
restructuring and other charges, year-earlier earnings were 12
cents a share. The company had estimated earnings of 25 cents to 30
cents a share. Sales jumped to $1.8 billion, beating analysts'
estimate of $1.61 billion.
Gross margin rose to 19.8% from 16.9%.
Sales in Europe, the Middle East and Africa, which account for
the largest share of the total, jumped 52%. North America sales
rose 27% while the South America region saw a 8.8% increase.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com