Full-year Outlook Increased
AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide
manufacturer and distributor of agricultural equipment and
solutions, reported net sales of approximately $2.0 billion for the
first quarter of 2019, a decrease of approximately 0.6% compared to
the first quarter of 2018. Reported net income was $0.84 per share
for the first quarter of 2019, and adjusted net income, excluding
restructuring expenses, was $0.86 per share. These results compare
to a reported net income of $0.30 per share and adjusted net
income, excluding restructuring expenses, of $0.35 per share for
the first quarter of 2018. Excluding unfavorable currency
translation impacts of approximately 7.1%, net sales in the first
quarter of 2019 increased approximately 6.5% compared to the first
quarter of 2018.
First Quarter Highlights
- Reported regional sales
results(1): North America (1.3)%, Europe/Middle East (“EME”)
+4.0%, South America (14.3)%, Asia/Pacific/Africa (“APA”)
(16.3)%
- Constant currency regional sales
results(1)(2): North America (0.6)%, EME +13.2%,
South America (2.6%), APA (9.6)%
- Operating margin improvement of 190
basis points vs. first quarter of 2018
- Regional operating margin performance:
North America 6.2%, EME 10.5%, South America (5.4)%, APA 2.6%
- Share repurchase program reduced
outstanding shares by approximately 0.4 million during the first
three months of 2019
- Increased full-year outlook for net
income per share
(1)As compared to first quarter 2018
(2)Excludes
currency translation impact. See reconciliation in appendix.
“Focused operational performance across our regional business
units and supportive market conditions are driving sales and
earnings growth,” stated Martin Richenhagen, AGCO’s Chairman,
President and Chief Executive Officer. “AGCO’s first quarter
results demonstrated solid progress towards our margin improvement
goals for 2019. Led by our Europe/Middle East region, AGCO’s first
quarter 2019 adjusted operating margins improved over 190 basis
points compared to the first quarter of 2018. Our margin expansion
resulted from organic sales growth, an improved pricing environment
and initiatives aimed at lowering material costs and improving
productivity. We have raised our outlook for the full year to
reflect our confidence in our continued strong performance and in
the market recovery.”
Market Update
Industry Unit Retail Sales
Three months ended March 31, 2019
Tractors
Change from
Prior Year Period
Combines
Change from
Prior Year Period
North America(1) (3)% 28% South America (2)% 34% Western
Europe(2) 2% (11)%
(1)Excludes compact tractors.
(2)Based on Company estimates.
“Farm economics remained challenged across many of the major
crop-producing regions and global trade tensions continue to weigh
on farmer sentiment,” continued Mr. Richenhagen. “Global farm
equipment demand continues on a slow recovery path following an
extended period of decline. Planting across much of the U.S. farm
belt is delayed due to cold, wet weather and flooding in portions
of the Midwest. Farmer concerns over the lingering trade disputes
with China and the resulting increase in soybean inventories has
curtailed replacement demand from row crop farmers. North American
industry retail sales decreased in the first three months of 2019
compared to the same period in 2018. We expect North American
industry retail tractor sales to increase modestly in 2019 with
improved retail sales in the row crop segment and flat retail sales
of small tractors compared to last year. Relatively warm weather
across much of Europe has been positive for the development of the
winter wheat crop. Milk prices remain supportive of the dairy
sector in Western Europe. Industry retail sales in Western Europe
increased modestly in the first three months of 2019, following a
year of mixed results in 2018 for the arable farming segment.
Industry sales growth in France and Germany was partially offset by
declines in the United Kingdom and Italy. For the full year of
2019, industry demand in Western Europe is expected to be flat
compared to 2018. Industry retail sales in South America decreased
during the first three months of 2019. Industry sales declined
significantly in Argentina in response to lower crop production and
farm income in 2018 while industry demand in Brazil improved
modestly. Grain production in South America is ahead of last year’s
pace and industry demand is expected to increase modestly compared
to 2018. Looking ahead, we are optimistic about the long-term
outlook for the global agricultural equipment industry supported by
healthy fundamentals for commodity prices and farm income.”
Regional Results
AGCO Regional Net Sales (in millions)
Three Months Ended March 31, 2019 2018
%changefrom2018
% change from2018 due
tocurrencytranslation(1)
% changeexcludingcurrencytranslation
North America $ 496.2 $ 502.9 (1.3)% (0.8)% (0.6)% South
America 156.1 182.1 (14.3)% (11.6)% (2.6)% Europe/Middle East
1,210.6 1,163.7 4.0% (9.1)% 13.2% Asia/Pacific/Africa 132.9
158.8 (16.3)% (6.7)% (9.6)% Total $ 1,995.8 $ 2,007.5
(0.6)% (7.1)% 6.5%
(1) See appendix for additional
disclosures
North America
AGCO’s North American net sales decreased 0.6% in the first
three months of 2019 compared to the same period of 2018, excluding
the negative impact of currency translation. Lower sales of
tractors and grain and protein production equipment were mostly
offset by growth in the sales of application equipment as well as
hay and forage equipment. Income from operations for the first
three months of 2019 improved approximately $3.8 million compared
to the same period in 2018. The benefit of improved pricing and
sales mix contributed most of the increase.
South America
Net sales in the South American region decreased 2.6% in the
first three months of 2019 compared to the first three months of
2018, excluding the impact of unfavorable currency translation.
Income from operations improved approximately $8.1 million in the
first quarter compared to the same period in 2018. The South
America results in the first quarter reflect seasonally low levels
of industry demand and company production, as well as cost impacts
associated with the transition of newer product technology into our
Brazilian factories.
Europe/Middle East
Europe/Middle East net sales increased 13.2% in the first three
months of 2019 compared to the same period in 2018, excluding
unfavorable currency translation impacts. Sales growth was
strongest in France, the United Kingdom and Spain. Income from
operations improved approximately $28.7 million for the first three
months of 2019, compared to the same period in 2018, due to the
benefit of higher sales and production, pricing and the timing of
engineering costs compared to the prior year.
Asia/Pacific/Africa
Net sales in AGCO’s Asia/Pacific/Africa region decreased 9.6%,
excluding the negative impact of currency translation, in the first
three months of 2019 compared to the same period in 2018. Lower
sales in Asia and Australia produced most of the decrease. Income
from operations declined approximately $1.3 million in the first
three months of 2019, compared to the same period in 2018, due to
lower sales levels.
Outlook
Global industry demand is projected to improve modestly in 2019.
AGCO’s net sales for 2019 are expected to reach approximately $9.5
billion reflecting improved sales volumes and positive pricing,
offset by unfavorable foreign currency translation impacts. Gross
and operating margins are expected to improve from 2018 levels,
reflecting the positive impact of pricing and cost reduction
efforts. Based on these assumptions, 2019 earnings per share are
targeted at approximately $4.88 on a reported basis, or
approximately $4.90 on an adjusted basis, which excludes
restructuring expenses.
* * * * *
AGCO will be hosting a conference call with respect to this
earnings announcement at 10:00 a.m. Eastern Time on Thursday, May
2, 2019. 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, commodity prices, currency translation, farm income
levels, margin levels, investments in product and technology
development, new product introductions, restructuring and other
cost reduction initiatives, production volumes, tax rates 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, many of
our sales involve products that are manufactured in one country and
sold in a different country, and as a result, we are exposed to
risks related to foreign laws, taxes and tariffs, trade
restrictions, 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. Among these risks are the uncertain consequences of
Brexit, Russian sanctions and tariffs imposed on exports to and
imports from China.
- 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 40% to 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, can be 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 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, 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.
- Our business increasingly is subject to
regulations relating to privacy and data protection, and if we
violate any of those regulations or otherwise are the victim of a
cyber attack, we could incur significant losses and liability.
- 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 a 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, 2018. 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 solutions and delivers high-tech
solutions for farmers feeding the world through its full line of
equipment and related services. AGCO products are sold through five
core brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and
Valtra®, supported by Fuse® smart farming solutions. Founded in
1990 and headquartered in Duluth, Georgia, USA, AGCO had net sales
of $9.4 billion in 2018. For more information, visit
http://www.AGCOcorp.com. For company news, information and events,
please follow us on Twitter: @AGCOCorp. For financial news on
Twitter, please follow the hashtag #AGCOIR.
Please visit our website at www.agcocorp.com
AGCO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in millions)
March 31, 2019 December 31, 2018
ASSETS Current
Assets: Cash and cash equivalents $ 292.8 $ 326.1 Accounts and
notes receivable, net 928.5 880.3 Inventories, net 2,307.6 1,908.7
Other current assets 432.4 422.3 Total current assets
3,961.3 3,537.4 Property, plant and equipment, net 1,363.3 1,373.1
Right-of-use lease assets 193.8 — Investment in affiliates 393.2
400.0 Deferred tax assets 119.7 104.9 Other assets 132.1 142.4
Intangible assets, net 555.3 573.1 Goodwill 1,485.6 1,495.5
Total assets $ 8,204.3 $ 7,626.4
LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities:
Current portion of long-term debt $ 68.4 $ 72.6 Short-term
borrowings 181.5 138.0 Senior term loan 224.7 — Accounts payable
964.3 865.9 Accrued expenses 1,441.0 1,522.4 Other current
liabilities 174.8 167.8 Total current liabilities
3,054.7 2,766.7 Long-term debt, less current portion and debt
issuance costs 1,404.3 1,275.3 Operating lease liabilities 150.8 —
Pensions and postretirement health care benefits 216.8 223.2
Deferred tax liabilities 106.8 116.3 Other noncurrent liabilities
251.9 251.4 Total liabilities 5,185.3 4,632.9
Stockholders’ Equity: AGCO Corporation stockholders’
equity: Common stock 0.8 0.8 Additional paid-in capital 9.7 10.2
Retained earnings 4,491.0 4,477.3 Accumulated other comprehensive
loss (1,545.8 ) (1,555.4 ) Total AGCO Corporation stockholders’
equity 2,955.7 2,932.9 Noncontrolling interests 63.3 60.6
Total stockholders’ equity 3,019.0 2,993.5
Total liabilities and stockholders’ equity $ 8,204.3 $
7,626.4
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, 2019 2018 Net
sales $ 1,995.8 $ 2,007.5 Cost of goods sold 1,539.1 1,579.5
Gross profit 456.7 428.0 Selling, general and administrative
expenses 262.2 264.6 Engineering expenses 84.5 90.9 Restructuring
expenses 1.7 5.9 Amortization of intangibles 15.3 15.7 Bad debt
expense 0.6 0.4 Income from operations 92.4 50.5
Interest expense, net 3.5 10.3 Other expense, net 14.6 11.5
Income before income taxes and equity in net earnings of
affiliates 74.3 28.7 Income tax provision 19.4 11.4
Income before equity in net earnings of affiliates 54.9 17.3 Equity
in net earnings of affiliates 10.8 7.7 Net income
65.7 25.0 Net income attributable to noncontrolling interests (0.6
) (0.7 ) Net income attributable to AGCO Corporation and
subsidiaries $ 65.1 $ 24.3 Net income per common
share attributable to AGCO Corporation and subsidiaries: Basic $
0.85 $ 0.31 Diluted $ 0.84 $ 0.30 Cash
dividends declared and paid per common share $ 0.15 $ 0.15
Weighted average number of common and common equivalent
shares outstanding: Basic 76.6 79.6 Diluted 77.5 80.5
See accompanying notes to condensed
consolidated financial statements.
AGCO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(unaudited and in millions)
Three Months Ended March 31, 2019 2018
Cash flows from operating activities: Net income $ 65.7 $ 25.0
Adjustments to reconcile net income to net cash used in operating
activities: Depreciation 53.0 59.2 Amortization of intangibles 15.3
15.7 Stock compensation expense 12.5 9.2 Equity in net earnings of
affiliates, net of cash received (10.1 ) (4.3 ) Deferred income tax
benefit (8.6 ) (7.0 ) Other 0.8 0.1 Changes in operating assets and
liabilities, net of effects from purchase of businesses: Accounts
and notes receivable, net (65.7 ) 6.2 Inventories, net (418.6 )
(398.2 ) Other current and noncurrent assets (4.9 ) (36.2 )
Accounts payable 127.5 66.4 Accrued expenses (107.7 ) (108.4 )
Other current and noncurrent liabilities 10.9 11.0
Total adjustments (395.6 ) (386.3 ) Net cash used in operating
activities (329.9 ) (361.3 ) Cash flows from investing activities:
Purchases of property, plant and equipment (60.9 ) (46.1 ) Proceeds
from sale of property, plant and equipment — 1.5 Other — 0.4
Net cash used in investing activities (60.9 ) (44.2 ) Cash
flows from financing activities: Proceeds from indebtedness, net
423.1 401.5 Purchases and retirement of common stock (30.0 ) (7.1 )
Payment of dividends to stockholders (11.5 ) (11.9 ) Payment of
minimum tax withholdings on stock compensation (23.0 ) (3.2 )
Payment of debt issuance costs (0.5 ) — Investment by
noncontrolling interests 0.6 — Net cash provided by
financing activities 358.7 379.3 Effects of exchange
rate changes on cash and cash equivalents (1.2 ) 6.7
Decrease in cash and cash equivalents (33.3 ) (19.5 ) Cash and cash
equivalents, beginning of period 326.1 367.7 Cash and
cash equivalents, end of period $ 292.8 $ 348.2
See accompanying notes to condensed
consolidated financial statements.
AGCO CORPORATION AND SUBSIDIARIESNOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(unaudited, in millions,
except share amounts, per share data and employees)
1. STOCK COMPENSATION EXPENSE
The Company recorded stock compensation expense as follows:
Three Months Ended March 31, 2019 2018
Cost of goods sold $ 0.5 $ 0.8 Selling, general and administrative
expenses 12.0 8.4 Total stock compensation expense $ 12.5
$ 9.2
2. RESTRUCTURING EXPENSES
From 2014 through 2019, the Company announced and initiated
several actions to rationalize employee headcount at various
manufacturing facilities and administrative offices located in
Europe, South America, China and the United States in order to
reduce costs in response to softening global market demand and
lower production volumes. The aggregate headcount reduction was
approximately 3,890 employees between 2014 and 2018. The Company
had approximately $7.1 million of severance and related costs
accrued as of December 31, 2018. During the three months ended
March 31, 2019, the Company recorded an additional $1.7
million of severance and related costs associated with further
rationalizations associated with the termination of approximately
30 employees, and paid approximately $2.6 million of severance and
associated costs. The $1.7 million of costs incurred during the
three months ended March 31, 2019 included a $0.3 million
write-down of property, plant and equipment. The remaining $5.8
million of accrued severance and other related costs as of
March 31, 2019, inclusive of approximately $ 0.1 million of
negative foreign currency translation impacts, are expected to be
paid primarily during 2019.
3. INDEBTEDNESS
Long-term debt at March 31, 2019 and December 31, 2018
consisted of the following:
March 31, 2019 December 31, 2018 1.056%
Senior term loan due 2020 $ 224.7 $ 228.7 Senior term loan due 2022
168.5 171.5 Credit facility, expires 2023 207.9 114.4 1.002% Senior
term loan due 2025 280.9 — Senior term loans due between 2019 and
2028 801.1 815.3 Other long-term debt 17.1 20.6 Debt issuance costs
(2.8 ) (2.6 ) 1,697.4 1,347.9 Less: 1.056% Senior term loan due
2020 (224.7 ) — Senior term loans due 2019 (62.9 ) (63.8 ) Current
portion of other long-term debt (5.5 ) (8.8 ) Total long-debt, less
current portion $ 1,404.3 $ 1,275.3
As of March 31, 2019 and December 31, 2018, the
Company had short-term borrowings due within one year of
approximately $181.5 million and $138.0 million, respectively.
4. INVENTORIES
Inventories at March 31, 2019 and December 31, 2018
were as follows:
March 31, 2019 December 31, 2018
Finished goods $ 841.3 $ 660.4 Repair and replacement parts 629.8
587.3 Work in process 289.6 217.5 Raw materials 546.9 443.5
Inventories, net $ 2,307.6 $ 1,908.7
5. ACCOUNTS RECEIVABLE SALES AGREEMENTS
The Company has accounts receivable sales agreements that permit
the sale, on an ongoing basis, of a majority of its wholesale
receivables in North America, Europe and Brazil to its U.S.,
Canadian, European and Brazilian finance joint ventures. As of both
March 31, 2019 and December 31, 2018, the cash received
from receivables sold under the U.S., Canadian, European and
Brazilian accounts receivable sales agreements was approximately
$1.4 billion.
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 $8.7 million and $7.8
million, respectively, during the three months ended March 31,
2019 and 2018, respectively.
The Company’s finance joint ventures in Europe, Brazil and
Australia also provide wholesale financing directly to the
Company’s dealers. As of March 31, 2019 and December 31,
2018, these finance joint ventures had approximately $88.1 million
and $82.5 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, 2019 and 2018 is as
follows:
Three Months Ended March 31, 2019 2018
Basic net income per share: Net income attributable to AGCO
Corporation and subsidiaries $ 65.1 $ 24.3 Weighted average
number of common shares outstanding 76.6 79.6 Basic net
income per share attributable to AGCO Corporation and subsidiaries
$ 0.85 $ 0.31 Diluted net income per share: Net income
attributable to AGCO Corporation and subsidiaries $ 65.1 $
24.3 Weighted average number of common shares outstanding 76.6 79.6
Dilutive stock-settled appreciation rights, performance share
awards and restricted stock units 0.9 0.9 Weighted average
number of common shares and common share equivalents outstanding
for purposes of computing diluted net income per share 77.5
80.5 Diluted net income per share attributable to AGCO Corporation
and subsidiaries $ 0.84 $ 0.30
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, 2019 and 2018 are
as follows:
Three Months Ended March 31, North
America
South
America
Europe/
Middle East
Asia/
Pacific/Africa
Consolidated
2019 Net sales $ 496.2 $ 156.1 $ 1,210.6 $ 132.9 $
1,995.8 Income from operations 30.6 (8.5 ) 127.7 3.4 153.2
2018 Net sales $ 502.9 $ 182.1 $ 1,163.7 $ 158.8 $ 2,007.5
Income from operations 26.8 (16.6 ) 99.0 4.7 113.9
A reconciliation from the segment information to the
consolidated balances for income from operations is set forth
below:
Three Months Ended March 31, 2019 2018
Segment income from operations $ 153.2 $ 113.9 Corporate expenses
(31.8 ) (33.4 ) Stock compensation expense (12.0 ) (8.4 )
Restructuring expenses (1.7 ) (5.9 ) Amortization of intangibles
(15.3 ) (15.7 ) Consolidated income from operations $ 92.4 $
50.5
RECONCILIATION OF NON-GAAP MEASURES
This earnings release discloses adjusted income from operations,
adjusted net income and adjusted net income per share, each of
which exclude amounts that are typically included in 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 reported income from
operations, net income and net income per share to adjusted income
from operations, net income and net income per share for the three
months ended March 31, 2019 and 2018 (in millions, except per
share data):
Three Months Ended March 31, 2019 2018
Income FromOperations
Net Income(1)
Net IncomePer Share(1)
Income FromOperations
Net Income(1)
Net IncomePer Share(1)
As reported $ 92.4 $ 65.1 $ 0.84 $ 50.5 $ 24.3 $ 0.30 Restructuring
expenses(2) 1.7 1.4 0.02 5.9 4.2
0.05 As adjusted $ 94.1 $ 66.5 $ 0.86 $ 56.4
$ 28.5 $ 0.35
(1)
Net income and net income per share
amounts are after tax.
(2)
The restructuring expenses recorded during
the three months ended March 31, 2019 and 2018 related primarily to
severance costs associated with the Company’s rationalization of
certain U.S., European and South American manufacturing operations
and various administrative offices.
The following is a reconciliation of targeted net income per
share to adjusted targeted net income per share for the year ended
December 31, 2019:
Net Income Per Share(1) As targeted $ 4.88
Restructuring expenses 0.02 As adjusted targeted(2) $ 4.90
(1)
Net income per share amount is after
tax.
(2)
The above reconciliation reflects
adjustments to full year 2019 targeted net income per share based
upon restructuring expenses and other adjustments incurred during
the three months ended March 31, 2019. Full year restructuring
expenses could differ based on future restructuring activity.
The following tables set forth, for the three months ended
March 31, 2019, 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 2019 2018
% change from2018
$
%
North America $ 496.2 $ 502.9 (1.3 )% $ (3.8 ) (0.8 )% South
America 156.1 182.1 (14.3 )% (21.2 ) (11.6 )% Europe/Middle East
1,210.6 1,163.7 4.0 % (106.3 ) (9.1 )% Asia/Pacific/Africa 132.9
158.8 (16.3 )% (10.6 ) (6.7 )% $ 1,995.8 $
2,007.5 (0.6 )% $ (141.9 ) (7.1 )%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190502005421/en/
Greg PetersonVice President, Investor
Relations770-232-8229greg.peterson@agcocorp.com
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