DULUTH, Ga. — AGCO reported net sales of approximately $2.6 billion for the fourth quarter of 2018, an increase of about 2.6% compared to net sales of approximately $2.5 billion for the fourth quarter of 2017. Excluding unfavorable currency translation impacts of approximately 4.7%, net sales in the fourth quarter of 2018 increased approximately 7.3% compared to the fourth quarter of 2017.
Net sales for the full year of 2018 were $9.4 billion, an increase of 12.6% compared to 2017. Excluding the favorable impact of currency translation of approximately 0.1%, net sales for the full year of 2018 increased approximately 12.5% compared to 2017.
Regional Results
Sales by region in the fourth quarter were as follows:
- Europe/Middle East (“EME”) +5.4%, North America –0.1%, South America –12.6%, Asia/Pacific/Africa (“APA”) +11.4%
- Constant currency fourth quarter regional sales results: EME +9.5%, North America +0.8%, South America +0.9%, APA +16.4%
AGCO Regional Net Sales ($000s)
| 3 Month Ended Dec. 31 | 2018 | 2017 | % Change vs. 2017 |
| North America | $531.2 | $531.8 | (0.1)% |
| South America | 276.2 | 315.9 | (12.6)% |
| EME | 1,511.7 | 1,434.6 | 5.4% |
| APA | 273.1 | 245.1 | 11.4% |
| Total | $2,592.2 | $2,527.4 | 2.6% |
| Year Ended Dec. 31 | 2018 | 2017 | %Change vs. 2017 |
| North America | $2,180.1 | $1,876.7 | 16.2% |
| South America | 959.0 | 1,063.5 | (9.8)% |
| EME | 5,385.1 | 4,614.3 | 16.7% |
| APA | 827.8 | 752.0 | 10.1% |
| Total | $9,352.0 | $8,306.5 | 12.6% |
2019 Outlook
Global industry demand is projected to improve modestly in 2019. AGCO’s net sales for 2019 are expected to reach approximately $9.6 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.
