Agco 3Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“In North America, farmers’ strong financial positions and the expectation of near-record farm income in 2013 are expected to support healthy retail demand, especially in the professional farming sector, through the end of the year. Strong farm fundamentals are expected to continue in Brazil in 2013 and the attractive terms for the government financing programs are in place through the end of the year are expected to stimulate growth in excess of 15% compared to the same levels in — compared to the levels in 2012. We are expecting softer demand in Western Europe, with weakness in the U.K. and Central and Eastern Europe. Solid demand across France and Germany is expected to mitigate some of the weakness in other areas. We are continuing to expect 2013 demand in Western Europe market to be down between 0% and 5% compared to 2012.”

“I don’t think anything has really changed too much over the course of a quarter. Obviously, the commodity prices are down, but also you have to keep in mind that farm income levels are projected to be very strong in North America and South America. And in many cases, in Europe, we’re seeing good harvest and farm income should be very good there as well. So we’re expecting the activity levels in our dealerships and retail demand to be strong for the balance of the year, and that’s what we’re for focused on right now.”

” in November, we will have the biggest farm show in the world with — it’s in Hanover, Germany, called Agritechnica. It’s a very global, very international show. All dealers go, all importers go, a lot of customers go. And so it, therefore, typically, before Agritechnica, orders slow down a little bit. And the real picture we will have when we come towards this in December. So it’s actually too early to talk about what’s really going on and to talk about 2014″

“we have seen a pickup in the midsize tractors for some of those dairy and livestock guys and also with that, we would expect to see heavier orders or continued heavy orders for the hay products. So that’s balers, windrowers, those kinds of things. So there is some offset then as you see maybe a slowdown if you do on the row crop guys, the dairy and livestock and the protein producers typically see their margins go up and that’s when we would expect to see stronger sales of those products that we just talked about.”

“especially in the U.S. with some expiring tax benefits and the farmers have had a very good year, a good harvest in most cases and commodity prices have been okay, so farm income is going to be good.”

Leave a Reply

Your email address will not be published. Required fields are marked *