Worldwide manufacturer and distributor of agricultural equipment AGCO has reported net sales of approximately $3.2 billion for the fourth quarter of 2021, an increase of approximately 16.1% compared to Q4 of 2020.
Net sales for the full year of 2021 were approximately $11.1 billion, which is an increase of around 21.7% compared to 2020. Excluding favorable currency translation impacts of approximately 2.2%, net sales for the full year of 2021 increased approximately 19.6% compared to 2020.
“AGCO delivered record results in 2021 highlighted by significantly higher sales and margins compared to 2020,” stated Eric Hansotia, AGCO’s Chairman, president and CEO. “Our performance was fuelled by improved global industry demand and focused execution by the AGCO team, who exceeded sales targets despite considerable supply chain challenges. Our smart technology product lines are in strong demand and are driving productivity improvements for our customers and growth opportunities for AGCO.”
Fourth quarter highlights
- Reported fourth quarter regional sales results : Europe/Middle East (“EME”) +4.3%, North America +39.1%, South America +51.6%, Asia/Pacific/Africa (“APA”) +15.0%
- Constant currency fourth quarter regional sales results : EME +8.7%, North America +38.8%, South America +56.2%, APA +15.4%
- Fourth quarter regional operating margin performance: EME 12.1%, North America 3.5%, South America 12.0%, APA 13.6%
- Full-year operating margins and adjusted operating margins improved to 9.0% and 9.1% respectively, in 2021 compared to 6.6% and 7.0% in 2020
- Generated approximately $683 million in cash flow from operations and approximately $413 million in free cash flow in 2021
- Full-year earnings forecast for 2022 of approximately $11.50 per share
AGCO’s net sales for 2022 are expected to be approximately $12.3 billion, reflecting improved sales volumes and pricing partially offset by negative foreign currency translation. Gross and operating margins are projected to improve from 2021 levels, reflecting the impact of higher sales and production volumes as well as pricing to offset cost inflation. These improvements are planned to fund increases in engineering and other technology investments to support AGCO’s precision agriculture and digital initiatives. Based on these assumptions, 2022 earnings per share are targeted at approximately $11.50.