Expense and Working Capital Management
Highlight First Quarter
Company Achieves First Quarter Adjusted EPS of
$0.43 and Reported EPS of $0.34
AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide
manufacturer and distributor of agricultural equipment, reported
net sales of approximately $1.7 billion for the first quarter of
2015, a decrease of approximately 27.0% compared to net sales of
approximately $2.3 billion for the first quarter of 2014. Reported
net income was $0.34 per share and adjusted net income, excluding
restructuring and other infrequent expenses, was $0.43 per share
for the first quarter of 2015. These results compare to reported
and adjusted net income per share of $1.03 for the first quarter of
2014. Excluding unfavorable currency translation impacts of
approximately 11.7%, net sales in the first quarter of 2015
decreased approximately 15.3% compared to the first quarter of
2014.
First Quarter Highlights
- First quarter regional sales
results(1): North America (25.3)%, Europe/Africa/ Middle
East (“EAME”) (10.4)%, South America (14.4)%, Asia/Pacific (“APAC”)
(14.7)%
- First quarter regional operating margin
performance: EAME 8.9%, North America 3.7%, South America 5.3%,
APAC (16.4)%
- Inventory at March 31, 2015
approximately $175 million lower than March 31, 2014 on a constant
currency basis(1)
- Significant progress with expense and
workforce reduction program; first quarter operating expenses 9%
below 2014 levels on a constant currency basis(1)
- Full-year earnings per share guidance
for 2015 remains at approximately $3.00, despite additional
negative currency translation impact
- Share repurchase program reduced
outstanding shares by 1.3 million during the first quarter of
2015
- Quarterly dividend increased 9% to
$0.12 effective first quarter 2015
(1)Excludes currency translation impact. See
reconciliation of Non-GAAP measures in appendix.
“Demand for agricultural equipment softened in all the major
world markets during the first quarter as weaker farm economics
continued to impact our industry,” stated Martin Richenhagen,
AGCO’s Chairman, President and Chief Executive Officer. “In the
first quarter, we made substantial progress with our inventory
reduction efforts and cost reduction initiatives. We reduced
production hours by approximately 21% compared to the first quarter
of 2014, and inventories were lower by over $175 million compared
to March 31, 2014, on a constant currency basis. In addition, we
significantly reduced the size of our workforce to achieve
meaningful cuts in our operating expenses. While these actions are
a response to current market conditions, we are also maintaining
key strategic investments in product and market development to
position AGCO for future profitable growth.”
Market Update
Industry Unit Retail Sales
Tractors
Combines
Change from Change from
Three months ended March 31, 2015
Prior Year Period Prior Year Period North
America(1) (10 )% (44 )% South America (12 )% (35 )% Western Europe
(12 )% (13 )%
(1)Excludes compact tractors.
“Global grain inventories across the major crops have increased
over the last 12 months,” continued Mr. Richenhagen. “The increased
grain stocks and preliminary crop production forecasts continue to
pressure soft commodity prices and farm income across the key
agricultural markets. Weaker farm economics produced softer
industry equipment demand during the first quarter of 2015. Retail
sales in North America declined, with the largest drop in
high-horsepower tractors and combines partially offset by growth in
hay and forage equipment due to healthy conditions in the region’s
livestock sector. Difficult economics for the dairy producers and
lower grain prices kept market demand soft across Western Europe.
Industry sales decreases were most pronounced in France, the United
Kingdom, Germany and Finland. Lower industry sales in South America
were the result of softer demand from sugar producers in Brazil,
weakness in the general economy and uncertainty around the
Brazilian government financing program. We expect these
shorter-term trends to continue resulting in lower demand in all
major farm equipment markets in 2015. Despite these near-term
challenges, the longer-term trends of population growth and
increased protein consumption that have increased demand for grains
are expected to intensify, supporting healthy long-term
fundamentals for the agricultural industry.”
Regional Results
AGCO Regional Net Sales (in millions)
Three Months Ended March 31,
2015 2014
% changefrom 2014
% change from2014 due
tocurrencytranslation(1)
North America $ 472.5 $ 647.5 (27.0)% (1.7)% South America 249.0
353.6 (29.6)% (15.2)% Europe/Africa/Middle East 908.1 1,235.9
(26.5)% (16.1)% Asia/Pacific 73.0 96.4 (24.3)% (9.5)%
Total $ 1,702.6 $ 2,333.4 (27.0)% (11.7)%
(1)
See Footnotes for additional disclosures
North America
Net sales in the North American region decreased 25.3% in the
first quarter of 2015 compared to the first quarter of 2014,
excluding the impact of unfavorable currency translation, due to
softer end-market demand and dealer inventory reduction efforts.
Significant decreases in sales of high-horsepower tractors,
implements and combines were partially offset by growth in grain
storage and protein production products. Lower sales and production
volumes and a weaker sales mix contributed to a reduction in income
from operations of approximately $38.0 million for the first
quarter of 2015 compared to the same period in 2014.
South America
AGCO’s South American net sales decreased 14.4% in the first
quarter of 2015 compared to the first quarter of 2014, excluding
the negative impact of currency translation. Softer market demand
and reduced equipment sales, primarily in Brazil, were partially
offset by increased grain storage sales. Income from operations
decreased approximately $14.8 million for the first quarter of 2015
compared to the same period in 2014 due to lower sales and
production volumes, as well as a weaker mix of sales.
Europe/Africa/Middle East
Excluding the negative impact of currency translation, net sales
in EAME declined 10.4% in the first quarter of 2015 compared to the
same period in 2014. Weaker end-market demand resulted in sales
declines with the most pronounced declines in Germany, Scandinavia
and Russia. Operating income decreased approximately $40.4 million
in the first quarter of 2015 compared to the same period in 2014.
The negative impacts of reduced production levels were partially
offset by cost reduction initiatives and the benefits of new
products.
Asia/Pacific
Net sales, excluding unfavorable currency translation impacts,
decreased 14.7% in AGCO’s Asia/Pacific region in the first quarter
of 2015 compared to the same period in 2014. Income from operations
declined approximately $10.7 million in the first quarter of 2015,
compared to the same period in 2014, due to lower sales and
increased market development costs in China.
AGCO Acquires Farmer Automatic
In April, AGCO completed the acquisition of Farmer Automatic
from The Clark Companies. Farmer Automatic is a leading
manufacturer of poultry systems for layers, pullets and broilers
and is headquartered in Laer, Germany. The acquisition expands
AGCO’s product offering and enables it to serve the commercial egg
sector. Farmer Automatic’s 2014 sales were approximately $19.0
million.
Outlook
Challenging farm economics are expected to negatively impact
industry demand across the developed agricultural equipment markets
in 2015. Net sales for 2015 are expected to range from $7.7 to $7.9
billion, reflecting the impacts of weaker market conditions and
unfavorable currency translation. Gross and operating margins are
expected to be below 2014 levels due to the negative impact of
lower sales and production volumes along with a weaker sales mix.
Benefits from the Company’s restructuring and other cost reduction
initiatives are expected to partially offset the volume-related
impacts. Based on these assumptions, 2015 earnings per share are
targeted at approximately $3.00, excluding restructuring and other
infrequent expenses.
*****
AGCO will be hosting a conference call with respect to this
earnings announcement at 10:00 a.m. Eastern Time on Tuesday,
April 28, 2015. The Company will refer to slides on its
conference call. Interested persons can access the conference call
and slide presentation via AGCO’s website at www.agcocorp.com in the “Events” section on the
“Company/Investors” page of our website. A replay of the conference
call will be available approximately two hours after the conclusion
of the conference call for twelve months following the call. A copy
of this press release will be available on AGCO’s website for at
least twelve months following the call.
*****
Safe Harbor Statement
Statements that are not historical facts, including the
projections of earnings per share, sales, industry demand, market
conditions, population growth, protein consumption, currency
translation, farm income levels, margin levels, investments in
product and market development, operational and cost reduction
initiatives, production volumes, and general economic conditions,
are forward-looking and subject to risks that could cause actual
results to differ materially from those suggested by the
statements. The following are among the factors that could cause
actual results to differ materially from the results discussed in
or implied by the forward-looking statements.
- Our financial results depend entirely
upon the agricultural industry, and factors that adversely affect
the agricultural industry generally, including declines in the
general economy, increases in farm input costs, lower commodity
prices, lower farm income and changes in the availability of credit
for our retail customers, will adversely affect us.
- A majority of our sales and
manufacturing take place outside the United States, and, as a
result, we are exposed to risks related to foreign laws, taxes,
economic conditions, labor supply and relations, political
conditions and governmental policies. These risks may delay or
reduce our realization of value from our international
operations.
- Most retail sales of the products that
we manufacture are financed, either by our joint ventures with
Rabobank or by a bank or other private lender. Our joint ventures
with Rabobank, which are controlled by Rabobank and are dependent
upon Rabobank for financing as well, finance approximately 50% of
the retail sales of our tractors and combines in the markets where
the joint ventures operate. Any difficulty by Rabobank to continue
to provide that financing, or any business decision by Rabobank as
the controlling member not to fund the business or particular
aspects of it (for example, a particular country or region), would
require the joint ventures to find other sources of financing
(which may be difficult to obtain), or us to find another source of
retail financing for our customers, or our customers would be
required to utilize other retail financing providers. As a result
of the recent economic downturn, financing for capital equipment
purchases generally has become more difficult in certain regions
and in some cases, was expensive to obtain. To the extent that
financing is not available or available only at unattractive
prices, our sales would be negatively impacted.
- Both AGCO and our retail finance joint
ventures have substantial account receivables from dealers and end
customers, and we would be adversely impacted if the collectability
of these receivables was not consistent with historical experience;
this collectability is dependent upon the financial strength of the
farm industry, which in turn is dependent upon the general economy
and commodity prices, as well as several of the other factors
listed in this section.
- We have experienced substantial and
sustained volatility with respect to currency exchange rate and
interest rate changes, including uncertainty associated with the
Euro, which can adversely affect our reported results of operations
and the competitiveness of our products.
- Our success depends on the introduction
of new products, particularly engines that comply with emission
requirements, which requires substantial expenditures.
- Our production levels and capacity
constraints at our facilities, including those resulting from plant
expansions and systems upgrades at our manufacturing facilities,
could adversely affect our results.
- Our expansion plans in emerging
markets, including establishing a greater manufacturing and
marketing presence and growing our use of component suppliers,
could entail significant risks.
- We depend on suppliers for components,
parts and raw materials for our products, and any failure by our
suppliers to provide products as needed, or by us to promptly
address supplier issues, will adversely impact our ability to
timely and efficiently manufacture and sell products. We also are
subject to raw material price fluctuations, which can adversely
affect our manufacturing costs.
- We face significant competition, and if
we are unable to compete successfully against other agricultural
equipment manufacturers, we would lose customers and our net sales
and profitability would decline.
- We have a substantial amount of
indebtedness, and, as result, we are subject to certain restrictive
covenants and payment obligations that may adversely affect our
ability to operate and expand our business.
Further information concerning these and other factors is
included in AGCO’s filings with the Securities and Exchange
Commission, including its Form 10-K for the year ended
December 31, 2014 and subsequent Form 10-Qs. AGCO
disclaims any obligation to update any forward-looking statements
except as required by law.
*****
About AGCO
AGCO (NYSE: AGCO) is a global leader in the design,
manufacture and distribution of agricultural machinery.
AGCO supports more productive farming through a full line of
tractors, combines, hay tools, sprayers, forage equipment, grain
storage and protein production systems, seeding and tillage
implements and replacement parts. AGCO products are sold
through five core machinery brands, Challenger®, Fendt®, GSI®,
Massey Ferguson® and Valtra® and are distributed globally through a
combination of approximately 3,100 independent dealers and
distributors in more than 140 countries. Founded in
1990, AGCO is headquartered in Duluth, GA, USA. In
2014, AGCO had net sales of $9.7 billion. For more information,
visit http://www.AGCOcorp.com.
AGCO: 25 years of identity, centuries of
history
#####
Please visit our website at www.agcocorp.com
AGCO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in millions)
March 31, 2015 December 31, 2014
ASSETS Current
Assets: Cash and cash equivalents $ 338.9 $ 363.7 Accounts and
notes receivable, net 1,027.1 963.8 Inventories, net 1,840.7
1,750.7 Deferred tax assets 206.1 217.2 Other current assets 257.0
232.5 Total current assets 3,669.8 3,527.9 Property,
plant and equipment, net 1,389.5 1,530.4 Investment in affiliates
398.7 424.1 Deferred tax assets 23.9 25.8 Other assets 129.2 141.1
Intangible assets, net 533.3 553.8 Goodwill 1,120.1 1,192.8
Total assets $ 7,264.5 $ 7,395.9
LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities:
Current portion of long-term debt $ 83.1 $ 94.3 Accounts payable
770.0 670.2 Accrued expenses 1,064.9 1,244.1 Other current
liabilities 162.8 208.3 Total current liabilities
2,080.8 2,216.9 Long-term debt, less current portion 1,424.5 997.6
Pensions and postretirement health care benefits 249.9 269.0
Deferred tax liabilities 230.6 238.8 Other noncurrent liabilities
170.9 176.7 Total liabilities 4,156.7 3,899.0
Stockholders’ Equity: AGCO Corporation stockholders’
equity: Common stock 0.9 0.9 Additional paid-in capital 516.6 582.5
Retained earnings 3,791.0 3,771.6 Accumulated other comprehensive
loss (1,250.1 ) (906.5 ) Total AGCO Corporation stockholders’
equity 3,058.4 3,448.5 Noncontrolling interests 49.4 48.4
Total stockholders’ equity 3,107.8 3,496.9
Total liabilities and stockholders’ equity $ 7,264.5 $
7,395.9
See accompanying notes to condensed
consolidated financial statements.
AGCO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited and in millions, except per
share data)
Three Months Ended March 31, 2015 2014 Net sales $
1,702.6 $ 2,333.4 Cost of goods sold 1,354.7 1,818.5 Gross
profit 347.9 514.9 Selling, general and administrative expenses
211.2 267.0 Engineering expenses 68.8 82.2 Restructuring and other
infrequent expenses 10.6 — Amortization of intangibles 10.5
10.0 Income from operations 46.8 155.7 Interest expense, net 10.2
13.9 Other expense, net 9.8 11.2 Income before income taxes
and equity in net earnings of affiliates 26.8 130.6 Income tax
provision 10.6 46.4 Income before equity in net earnings of
affiliates 16.2 84.2 Equity in net earnings of affiliates 13.7
15.0 Net income 29.9 99.2 Net loss attributable to
noncontrolling interests 0.2 0.4 Net income attributable to
AGCO Corporation and subsidiaries $ 30.1 $ 99.6 Net income
per common share attributable to AGCO Corporation and subsidiaries:
Basic $ 0.34 $ 1.05 Diluted $ 0.34 $ 1.03 Cash
dividends declared and paid per common share $ 0.12 $ 0.11
Weighted average number of common and common equivalent shares
outstanding: Basic 88.8 95.3 Diluted 89.0 96.6
See accompanying notes to condensed
consolidated financial statements.
AGCO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(unaudited and in millions)
Three Month Ended March 31, 2015 2014 Cash
flows from operating activities: Net income $ 29.9 $ 99.2
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation 54.1 59.4 Deferred debt issuance cost amortization 0.4
0.7 Amortization of intangibles 10.5 10.0 Stock compensation
expense 2.4 6.4 Equity in net earnings of affiliates, net of cash
received (12.5 ) (12.7 ) Deferred income tax provision (2.8 ) 4.7
Other (0.1 ) 0.3 Changes in operating assets and liabilities:
Accounts and notes receivable, net (167.9 ) (254.0 ) Inventories,
net (239.8 ) (424.3 ) Other current and noncurrent assets (46.4 )
(25.1 ) Accounts payable 174.0 70.1 Accrued expenses (89.9 ) (46.5
) Other current and noncurrent liabilities 2.1 0.8
Total adjustments (315.9 ) (610.2 ) Net cash used in operating
activities (286.0 ) (511.0 ) Cash flows from investing activities:
Purchases of property, plant and equipment (62.9 ) (101.2 )
Proceeds from sale of property, plant and equipment 0.4 1.3
Investment in unconsolidated affiliates (5.2 ) — Net cash
used in investing activities (67.7 ) (99.9 ) Cash flows from
financing activities: Proceeds from debt obligations, net 445.8
106.9 Purchases and retirement of common stock (62.5 ) (290.0 )
Payment of dividends to stockholders (10.7 ) (10.3 ) Payment of
minimum tax withholdings on stock compensation (5.7 ) (9.2 )
Conversion of convertible senior subordinated notes — (49.6
) Net cash provided by (used in) financing activities 366.9
(252.2 ) Effects of exchange rate changes on cash and cash
equivalents (38.0 ) 9.8 Decrease in cash and cash
equivalents (24.8 ) (853.3 ) Cash and cash equivalents, beginning
of period 363.7 1,047.2 Cash and cash equivalents,
end of period $ 338.9 $ 193.9
See accompanying notes to condensed
consolidated financial statements.
AGCO CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
(unaudited, in millions, except share amounts
and per share data)
1. STOCK COMPENSATION EXPENSE
The Company recorded stock compensation expense as follows:
Three Months Ended March 31, 2015 2014 Cost of goods
sold $ 0.2 $ 0.5 Selling, general and administrative expenses 2.2
5.9 Total stock compensation expense $ 2.4 $ 6.4
2. RESTRUCTURING AND OTHER INFREQUENT EXPENSES
During the second half of 2014 and the first quarter of 2015,
the Company announced and initiated several actions to rationalize
employee headcount at various manufacturing facilities located in
Europe, China, Brazil, Argentina and the United States, as well as
various administrative offices located in Europe, Brazil, China and
the United States. The aggregate headcount reduction of over 1,600
employees in 2014 and 2015 was initiated in order to reduce costs
in response to softening global market demand and reduced
production volumes. The Company recorded restructuring and other
infrequent expenses of approximately $46.4 million and $10.6
million, respectively, during 2014 and 2015 associated with these
rationalizations, primarily related to severance and other related
costs. Approximately $19.0 million of severance and other related
costs were paid during 2014. In addition, during the three months
ended March 31, 2015, the Company paid approximately $10.2 million
of severance and other related costs.
3. INDEBTEDNESS
Indebtedness at March 31, 2015 and December 31, 2014
consisted of the following:
March 31, 2015 December 31, 2014 4½% Senior term loan
due 2016 $ 214.8 $ 242.0 Credit facility expires 2019 622.2 404.4
1.056% Senior term loan due 2020 214.8 — 5⅞% Senior notes due 2021
300.0 300.0 Other long-term debt 155.8 145.5 1,507.6
1,091.9 Less: Current portion of long-term debt (83.1 ) (94.3 )
Total indebtedness, less current portion $ 1,424.5 $ 997.6
4. INVENTORIES
Inventories at March 31, 2015 and December 31, 2014
were as follows:
March 31, 2015 December 31, 2014 Finished goods $
714.9 $ 616.6 Repair and replacement parts 543.8 536.4 Work in
process 163.1 130.5 Raw materials 418.9 467.2 Inventories,
net $ 1,840.7 $ 1,750.7
5. ACCOUNTS RECEIVABLE SALES AGREEMENTS
At March 31, 2015 and December 31, 2014, the Company
had accounts receivable sales agreements that permit the sale, on
an ongoing basis, of a majority of its wholesale receivables in
North America and Europe to its 49% owned U.S., Canadian and
European retail finance joint ventures. As of March 31, 2015
and December 31, 2014, the cash received from receivables sold
under the U.S., Canadian and European accounts receivable sales
agreements was approximately $1.1 billion and $1.2 billion,
respectively.
Losses on sales of receivables associated with the accounts
receivable financing facilities discussed above, reflected within
“Other expense, net” in the Company’s Condensed Consolidated
Statements of Operations, were approximately $5.0 million and $7.5
million during the three months ended March 31, 2015 and 2014,
respectively.
The Company’s retail finance joint ventures in Brazil and
Australia also provide wholesale financing to the Company’s
dealers. As of March 31, 2015 and December 31, 2014,
these retail finance joint ventures had approximately $26.7 million
and $43.3 million, respectively, of outstanding accounts receivable
associated with these arrangements. In addition, the Company sells
certain trade receivables under factoring arrangements to other
financial institutions around the world.
6. NET INCOME PER SHARE
A reconciliation of net income attributable to AGCO Corporation
and subsidiaries and weighted average common shares outstanding for
purposes of calculating basic and diluted net income per share for
the three months ended March 31, 2015 and 2014 is as
follows:
Three Months Ended March 31, 2015 2014 Basic net
income per share: Net income attributable to AGCO Corporation and
subsidiaries $ 30.1 $ 99.6 Weighted average number of common
shares outstanding 88.8 95.3 Basic net income per share
attributable to AGCO Corporation and subsidiaries $ 0.34 $
1.05 Diluted net income per share: Net income attributable to AGCO
Corporation and subsidiaries $ 30.1 $ 99.6 Weighted average
number of common shares outstanding 88.8 95.3 Dilutive
stock-settled appreciation rights, performance share awards and
restricted stock units 0.2 0.4 Weighted average assumed conversion
of contingently convertible senior subordinated notes — 0.9
Weighted average number of common shares and common share
equivalents outstanding for purposes of computing diluted net
income per share 89.0 96.6 Diluted net income per share
attributable to AGCO Corporation and subsidiaries $ 0.34 $
1.03
Share Repurchase Program
During the three months ended March 31, 2015, the Company
entered into an accelerated repurchase agreement (“ASR”) with a
financial institution to repurchase an aggregate of $62.5 million
of shares of the Company’s common stock. The Company received
approximately 1,290,733 shares during the three months ended
March 31, 2015 related to the ASR. All shares received under
the ASR were retired upon receipt, and the excess of the purchase
price over par value per share was recorded to “Additional paid-in
capital” within the Company’s Condensed Consolidated Balance
Sheets.
Of the $1,050.0 million in approved share repurchase programs,
the remaining amount authorized to be repurchased is approximately
$469.2 million.
7. SEGMENT REPORTING
The Company’s four reportable segments distribute a full range
of agricultural equipment and related replacement parts. The
Company evaluates segment performance primarily based on income
from operations. Sales for each segment are based on the location
of the third-party customer. The Company’s selling, general and
administrative expenses and engineering expenses are charged to
each segment based on the region and division where the expenses
are incurred. As a result, the components of income from operations
for one segment may not be comparable to another segment. Segment
results for the three months ended March 31, 2015 and 2014 are
as follows:
Three Months Ended March 31,
North
America
South
America
Europe/Africa/
Middle East
Asia/
Pacific
Consolidated
2015 Net sales $ 472.5 $ 249.0 $ 908.1 $ 73.0 $
1,702.6 Income (loss) from operations 17.5 13.1 80.5 (12.0 ) 99.1
2014 Net sales $ 647.5 $ 353.6 $ 1,235.9 $ 96.4 $
2,333.4 Income (loss) from operations 55.5 27.9 120.9 (1.3 ) 203.0
A reconciliation from the segment information to the
consolidated balances for income from operations is set forth
below:
Three Months Ended March 31, 2015 2014 Segment income
from operations $ 99.1 $ 203.0 Corporate expenses (29.0 ) (31.4 )
Stock compensation expense (2.2 ) (5.9 ) Restructuring and other
infrequent expenses (10.6 ) — Amortization of intangibles (10.5 )
(10.0 ) Consolidated income from operations $ 46.8 $ 155.7
RECONCILIATION OF NON-GAAP MEASURES
This earnings release discloses adjusted income from operations,
net income and earnings per share, all of which exclude amounts
that differ from the most directly comparable measure calculated in
accordance with U.S. generally accepted accounting principles
(“GAAP”). A reconciliation of each of those measures to the most
directly comparable GAAP measure is included below.
The following is a reconciliation of adjusted income from
operations, net income and earnings per share to reported income
from operations, net income and earnings per share for the three
months ended March 31, 2015 and 2014 (in millions, except per share
data):
Three months ended March 31, 2015 2014
IncomeFromOperations
NetIncome (1)
Earnings PerShare (1)
IncomeFromOperations
NetIncome (1)
Earnings PerShare (1)
As adjusted $ 57.4 $ 38.0 $ 0.43 $ 155.7 $ 99.6 $ 1.03
Restructuring and other infrequent expenses (2) 10.6 7.9
0.09 — — — As reported $ 46.8 $
30.1 $ 0.34 $ 155.7 $ 99.6 $ 1.03
(1) Net income and earnings per share amounts are after tax.
(2) The restructuring and other infrequent expenses recorded
during the three months ended March 31, 2015 relate primarily to
severance costs associated with the Company’s rationalization of
certain European manufacturing operations as well as various
administrative offices located in Europe and the United States.
The following is a reconciliation of adjusted earnings per share
to targeted earnings per share for the year ended December 31,
2015:
Earnings Per Share (1) As adjusted $ 3.00 Restructuring and
other infrequent expenses 0.11 As targeted $ 2.89
(1) Earnings per share amount is after tax.
This earnings release discloses the percentage change in
regional net sales due to the impact of currency translation. The
following table sets forth, for the three months ended
March 31, 2015, the impact to net sales of currency
translation by geographical segment (in millions, except
percentages):
Three Months Ended March 31, Change due to currency
translation 2015 2014 % change from 2014
$
%
North America $ 472.5 $ 647.5 (27.0 )% $ (11.0 ) (1.7 )% South
America 249.0 353.6 (29.6 )% (53.7 ) (15.2 )% Europe/Africa/Middle
East 908.1 1,235.9 (26.5 )% (198.9 ) (16.1 )% Asia/Pacific 73.0
96.4 (24.3 )% (9.2 ) (9.5 )% $ 1,702.6
$
2,333.4 (27.0 )% $ (272.8 ) (11.7 )%
This earnings release discloses the reduction in inventory on a
constant currency basis, excluding the impact of currency
translation, between March 31, 2015 and 2014. The following is a
reconciliation of the impact of currency translation on the change
in inventory balances (in millions):
March 31, 2015 March 31, 2014
Change from2014
Change due tocurrencytranslation
Changeexcludingcurrencytranslation
Inventories, net $ 1,840.7 $ 2,442.4 $ (601.7 ) $ (427.2 ) $
(174.5 )
This earnings release discloses the reduction in operating
expenses on a constant currency basis, excluding the impact of
currency translation, for the three months ended March 31, 2015 as
compared to the three months ended March 31, 2014. The following
table sets forth, for the three months ended March 31, 2015 the
reduction in operating expenses, excluding the impact of currency
translation (in millions, except percentages):
Three Months EndedMarch 31,
Change due to currencytranslation
2015 2014
% changefrom 2014
$
%
Selling, general and administrative expenses $ 211.2 $ 267.0
Engineering expenses 68.8 82.2 $ 280.0 $ 349.2
(19.8 )% $ (37.2 ) (10.7 )%
AGCOGreg Peterson, 770-232-8229Director of Investor
Relationsgreg.peterson@agcocorp.com
Grafico Azioni AGCO (NYSE:AGCO)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni AGCO (NYSE:AGCO)
Storico
Da Lug 2023 a Lug 2024