February 10, 2010

Agco Q4 profits beat estimates

Agco Corp., a Georgia-based agricultural equipment manufacturer, saw strong sales of its tractors and harvesters in Brazil offset weaknesses in Europe and North America.

Agco reported a fourth quarter net profit of US$33.5 million, down from US$98.5 million a year earlier. Sales fell 14.1% to US$1.85 billion.

Analysts on average had expected Agco to report a profit before items of 31 cents a share, on sales of US$1.69 billion.

The company also raised its 2010 sales outlook, saying it now expects revenue in the range of US$6.6 billion to US$6.8 billion, up from an earlier forecast of US$6.4 billion to US$6.6 billion.

Agco said it believed Europe and North America were stabilising, but it still needed to reduce inventories in those markets by idling some facilities. The temporary plant closings will hurt results this quarter, Agco said.