The last week has seen ag machinery and product manufacturers reporting record or near record quarterly earnings.
AGCO Profits Rise 35%
Last Tuesday, October 25, AGCO Corp. reported that its third-quarter profit rose 35% as the agricultural-equipment maker saw regional sales grow, especially in Europe, the Middle East and Africa.
The company also raised its full-year guidance to a profit of $4.30 a share on revenue of $8.7 billion to $8.8 billion, compared with its July forecast of $4 a share on revenue of $8.5 billion to $8.7 billion. AGCO reported a profit of $84.4 million, or 87 cents a share, up from $62.3 million, or 65 cents a share, a year earlier. Net sales rose 27% to $2.1 billion. Gross margin widened to 19.4% from 18.3%.
CNH Revenue Rises 30%; Operating Profit up 92%
On Thursday, October 27, CNH Global (Case IH and New Holland brands) reported a net sales increase 30% to $4.6 billion. Ag equipment sales rose by 29% to $3.6 billion. Construction equipment sales grew by 36% to $1 billion. Operating profit for equipment operations came in at $460 million, an increase of 92%. Operating margins increased to 10% compared to 6.8% in the third quarter of 2010.
Net equipment sales for the quarter were 77% from agricultural equipment and 23% from construction equipment. The geographical distribution of revenue for the period was 42% North America, 29% EAME & CIS, 17% Latin America, and 12% APAC markets.
Ag Tire Maker Titan Int'l Reports Sales Increase of 79%
On Wednesday, October 26, Titan International reported that its sales for third quarter 2011 set a record at $398.8 million up 79%, compared to $222.8 million in the third quarter of 2010. Gross profit for third quarter 2011 was $53 million up 90%, compared to $27.9 million in 2010.
Third quarter income from operations was a record $41.4 million up 231%, compared to $12.5 million last year. Earnings per common basic share for the third quarter were $0.50, compared to $0.12. Fully diluted earnings per common share for the third quarter were $0.42, compared to $0.11.