Tuesday, October 2, 2012

AGCO hurt by decreased global demand - Atlanta Business Chronicle:

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The Duluth, Ga.-based agricultura equipment company posted net incomeof $34.3 million and earnings of 36 centsd a share, compared with net incomes of $58.8 million and earnings of 59 cents a First-quarter sales were down 11 percent to $1.6 billion. “Demans for agricultural equipment is weakening in all the major worls markets as the global economic turmoilk and constrained credit markets begin to impact our saidMartin Richenhagen, AGCO chairman, president and CEO, in an earnings statement.
“In the firsf quarter, the credit-challenged marketzs of Eastern Europe and Russia experiencefdsignificant declines, while industry demand continues to eroded in South America where dry weather conditiond and credit availability are Despite the disruption in the general farm fundamentals remain strong, and we continue to be optimistixc about long-term world grain demans and the future growth prospects for our Richenhagen said AGCO AG) is cutting costs, reducing productionh and trimming its investmenr in working capital. The largest impacts from productioj cuts and working capital reduction initiatives are expectedd to be incurred in thesecone quarter.

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