Worldwide industry demand is expected to be flat or to increase modestly in 2011 compared to 2010 levels. Higher crop prices for grain and dairy farmers in Western Europe and improving farmer sentiment are expected to generate modest growth in the Western European market. In North America, industry sales are expected to be flat in 2011 compared to the high level experienced in 2010.
The strong financial position of row-crop farmers and the expectation of farm income above historical averages is expected to support demand from the professional farming sector. Strong farm fundamentals are expected to continue in Brazil in 2011. However, less attractive government financing programs are expected to result in a softening of demand as compared to the record demand of 2010.
AGCO is targeting adjusted earnings per share, excluding restructuring and other infrequent expenses, in the range from $2.50 to $2.75 for the full year of 2011. Net sales are expected to range from $7.6 billion to $7.9 billion. Gross margin improvements are expected to be partially offset by higher expenses for new product and new market development.