DULUTH, Ga.— AGCO (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, reported net sales of approximately $2.1 billion for the fourth quarter of 2016, an increase of approximately 6.9% compared to net sales of approximately $2 billion for the fourth quarter of 2015. North American equipment sales during the period were up 3%.

Net sales for the full year of 2016 were approximately $7.4 billion, a decrease of approximately 0.8% compared to 2015. Excluding the unfavorable impact of currency translation of approximately 2.6%, net sales for the full year of 2016 increased approximately 1.9% compared to 2015.

Highlights

  • Reported fourth quarter regional sales results(1): Europe/Africa/Middle East (“EAME”) (2)%, North America +3%, South America +63.6%, Asia/Pacific (“APAC”) +21.8%
  • Constant currency fourth quarter regional sales results(1)(2): EAME +1.8%, North America +4.4%, South America +53.9%, APAC +22.7%
  • Generated $370 million in cash flow from operations and $168 million in free cash flow in 2016
  • Share repurchase program resulted in reduction of 4.4 million shares during 2016
  • New $300 million share repurchase program authorized through December 2019
  • Quarterly dividend increased to $0.14 per share effective first quarter 2017
  • Full-year earnings per share forecast for 2017 remains at approximately $2.50

(1) As compared to fourth quarter 2015

(2) Excludes currency translation impact. See reconciliation of Non-GAAP measures in appendix.

“The past year was a challenging year due to continued weakening global market demand for agricultural equipment,” states Martin Richenhagen, AGCO’s chairman, president and chief executive officer. “Despite these difficult conditions, our solid operational execution during 2016 allowed us to exceed our financial targets and be well-positioned to seek new opportunities for growth. Looking forward to 2017, industry conditions are expected to remain near the bottom of the agricultural equipment cycle in key markets. In response to the industry challenges, our focus continues to be on cost and expense reduction through globalizing processes, reducing complexity and better leveraging scale. In addition to diligent cost management, we will continue to make long-term investments to raise the efficiency of our factories, improve our service levels and strengthen our product offering.”

Regional Results

AGCO Regional Net Sales (in millions)

3 Months Ended December 31 2016 2015 % change from 2015 % change from 2015 due to currency translation
North America $447.4 $434.5 3.0 % (1.4) %
South America 308.1 188.3 63.6 % 9.7 %
EAME 1,187.1 1,211.9 (2.0) % (3.9) %
APAC 151.4 124.3 21.8 % (0.9) %
Total $2,094.0 $1,959.0 6.9 % (1.8) %

 

 Years Ended December 31 2016 2015 % change from 2015 % change from 2015 due to currency translation
North America $1,807.7 $1,965.0 (8.0) % (1.3) %
South America 917.5 949.0 (3.3) % (7.6) %
EAME 4,206.0 4,151.3 1.3 % (2.2) %
APAC 479.3 402.0 19.2 % (2.0 %
Total $7,410.5 $7,467.3 (0.8) % (2.6) %