AGCO, the worldwide manufacturer and distributor of agricultural equipment and solutions, reported its results for the second quarter ended June 30, 2022. Net sales for the second quarter were approximately $2.9 billion, an increase of approximately 2.3% compared to the second quarter of 2021.
Excluding unfavourable currency translation impacts of approximately 7.5%, net sales in the second quarter of 2022 increased approximately 9.8% compared to the second quarter of 2021. Reported net income was $2.37 per share for the second quarter of 2022, and adjusted net income (3) , which excludes restructuring expenses, was $2.38 per share.
These results compare to reported net income of $3.73 per share and adjusted net income, which excludes restructuring expenses and the reversal of a valuation allowance previously established against the Company’s deferred tax assets in the United States, of $2.88 per share for the second quarter of 2021.
Net sales for the first six months of 2022 were approximately $5.6 billion, an increase of approximately 7.1% compared to the same period in 2021. Excluding unfavorable currency translation impacts of approximately 6.4%, net sales for the first six months of 2022 increased approximately 13.5% compared to the same period in 2021. For the first six months of 2022, reported net income was $4.40 per share, and adjusted net income (3) , excluding impairment charges, restructuring expenses and other related items, was $4.77 per share. These results compare to reported net income of $5.71 per share, and adjusted net income, excluding restructuring expenses and the aforementioned reversal of a valuation allowance of $4.89 per share, for the first six months of 2021.
Second quarter highlights
- Reported regional sales results (1) : Europe/Middle East (“EME”) (10.3)%, North America +0.7%, South America +86.6%, Asia/Pacific/Africa (“APA”) (5.5)%
- Constant currency regional sales results (1)(2)(3) : EME +3.2%, North America +1.4%, South America +77.2%, APA +1.7%
- Regional operating margin performance: EME 11.0%, North America 6.9%, South America 16.5%, APA 14.1%
- Fully operational within approximately two weeks of May 2022 cyberattack
- Q2 production, sales and net income were negatively impacted
- Paid a variable special dividend of $4.50 per share as compared to $4.00 in 2021
- Maintained full-year outlook for adjusted earnings per share
“AGCO delivered solid results in the second quarter by remaining focused on our farmer-first strategy, while effectively managing the challenges associated with the cyberattack, currency headwinds and ongoing supply chain constraints,” said Eric Hansotia, AGCO’s chairman, president and CEO. “Our results reflect substantial price increases to combat rising material costs, higher logistics expenses, and other manufacturing inefficiencies. Farm fundamentals remain favorable and are supporting healthy order boards that remain ahead of last year’s level. Our farmer-first approach and expanding precision ag portfolio are contributing to strong end-market demand and robust growth in our margin-rich businesses.”
