AGCO Corporation (NYSE: AGCO) is an agricultural equipment manufacturer based in Duluth, Georgia, USA. As a leading global manufacturer of agricultural equipment, AGCO offers a full line of tractors, combines, hay tools, sprayers, forage and tillage equipment, which are distributed through more than 2,700 independent dealers and distributors in more than 140 countries worldwide.
AGCO Corporation (AGCO), incorporated in April 1991, is a manufacturer and distributor of agricultural equipment and related replacement parts worldwide. The Company sells a range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment and implements, and a line of diesel engines. AGCO’s products are marketed under a number of brands, including Challenger, Fendt, Massey Ferguson and Valtra. The Company operates through four segments: North America; South America; Europe/Africa/Middle East, and Rest of World. The Rest of World reportable segment includes the regions of Eastern Europe, Asia, Australia and New Zealand. On December 15, 2010, AGCO acquired Sparex Holding Ltd, (Sparex). On January 3, 2011, the Company acquired 50% of AGCO-Amity JV, LLC (AGCO-Amity JV).
AGCO distributes its products through 2,650 independent dealers and distributors in more than 140 countries. In addition, AGCO provides retail financing in the United States, Canada, Brazil, Germany, France, the United Kingdom, Australia, Ireland and Austria, through its retail finance joint ventures with Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank).
Tractors
AGCO’s compact tractors (under 40 horsepower) are used on small farms and in specialty agricultural industries, such as dairies, landscaping and residential areas. The Company also offers a range of tractors in the utility tractor category (40 to 100 horsepower), including two-wheel and all-wheel drive versions. Its utility tractors are used on small- and medium-sized farms and in specialty agricultural industries, including dairy, livestock, orchards and vineyards. In addition, AGCO offers a range of tractors in the high horsepower segment (primarily 100 to 585 horsepower). High horsepower tractors are used on larger farms and on cattle ranches for hay production. During the year ended December 31, 2010, tractors accounted for approximately 68% of its net sales.
Combines
The Company’s combines are sold with a range of threshing technologies. During 2010, combines accounted for approximately 6% of its net sales. The Company’s 50% investment in Laverda S.p.A. (Laverda), which is an operating joint venture between AGCO and the Italian ARGO group, is located in Breganze, Italy and manufactures harvesting equipment. In addition to producing Laverda branded combines, the Breganze factory manufactures mid-range combine harvesters for its Massey Ferguson, Fendt and Challenger brands for distribution in Europe, Africa and the Middle East.
Application Equipment
AGCO offers self-propelled, three- and four-wheeled vehicles and related equipment for use in the application of liquid and dry fertilizers and crop protection chemicals. The Company manufactures chemical sprayer equipment for use both prior to planting crops and after crops emerge from the ground. The Company also manufactures related equipment, including vehicles used for waste application that are designed for subsurface liquid injection and surface spreading of biosolids, such as sewage sludge and other farm or industrial waste. During 2010, application equipment accounted for approximately 4% of its net sales.
Hay Tools and Forage Equipment, Implements, Engines and Other Products
AGCO’s hay tools and forage equipment include both round and rectangular balers, self-propelled windrowers, disc mowers, spreaders and mower conditioners and are used for the harvesting and packaging of vegetative feeds used in the beef cattle, dairy, horse and alternative fuel industries. It also distributes a range of implements, planters and other equipment for its product lines. Tractor-pulled implements are used in field preparation and crop management. Implements include disc harrows, which improve field performance by cutting through crop residue, leveling seed beds and mixing chemicals with the soil; heavy tillage, which break up soil and mix crop residue into topsoil, with or without prior discing, and field cultivators, which prepare a smooth seed bed and destroy weeds. Tractor-pulled planters apply fertilizer and place seeds in the field. Other equipment primarily includes loaders, which are used for lifting and transporting hay crops.
The Company provides a range of precision farming technologies that are developed, manufactured and distributed worldwide. AGCO also offers other advanced technology precision farming products that gather information, such as yield data, allowing its customers to produce yield maps for the purpose of maximizing planting and fertilizer applications. Many of the Company’s tractors, combines, planters and sprayers are equipped with these precision farming technologies at the customer’s option. Its AGCO Sisu Power engines division produces diesel engines, gears and generating sets. The diesel engines are manufactured for use in Valtra tractors and certain other branded tractors, combines and sprayers, as well as for sale to third parties. The engine division specializes in the manufacturing of off-road engines in the 50 to 500 horsepower range. During 2010, hay tools and forage equipment, implements, engines and other products accounted for approximately 7% of its net sales.
Replacement Parts
In addition to sales of new equipment, AGCO sells replacement parts for all of the products it sells. During 2010, replacement parts accounted for approximately 15% of the Company’s net sales.
Europe
The Company markets and distributes farm machinery, equipment and replacement parts to farmers in European markets, through a network of approximately 1,100 independent dealers and distributors. AGCO also sells Valtra tractors and parts directly to the end user. Its tractor manufacturing operations in Europe are located in Suolahti, Finland; Beauvais, France, and Marktoberdorf, Germany. During 2010, sales in Europe accounted for approximately 47% of its net sales.
North America
AGCO markets and distributes farm machinery, equipment and replacement parts to farmers in North America, through a network of approximately 950 independent dealers. AGCO’s manufacturing operations in North America are located in Beloit, Kansas; Hesston, Kansas; Jackson, Minnesota, and Queretaro, Mexico. During 2010, sales in North America accounted for approximately 22% of its net sales.
South America
The Company markets and distributes farm machinery, equipment and replacement parts to farmers in South America through different networks. In Brazil and Argentina, AGCO distributes products directly to approximately 325 independent dealers. Outside of Brazil and Argentina, the Company sells its products in South America through independent distributors. The Company’s manufacturing operations in South America are located in Brazil. In Canoas, Rio Grande do Sul, Brazil. During 2010, sales in South America accounted for approximately 25% of its net sales.
Rest of the World
Outside Europe, North America and South America, AGCO operates primarily through a network of approximately 275 independent dealers and distributors, as well as associates and licensees, marketing its products and providing customer service support in approximately 85 countries in Africa, the Middle East, Australia and Asia. During 2010, sales outside Europe, North America and South America accounted for approximately 6% of its net sales.
The Allis-Chalmers Corp. was the progeny of an American named Edward P. Allis. Allis was born in New York in 1824 and graduated from Geneva College in 1845. After college, Allis and a friend, William Allen, moved to Milwaukee, Wisconsin, where they opened the Empire Leather Store. This venture was a natural progression for Allis because his family was already involved in the leather business in that area. Through either sheer luck or great foresight, Allis sold his interest in Empire Leather shortly before the financial panic of 1857. A number of businesses, including Empire Leather, failed during the economic downturn. For the cash-rich Allis, the disaster was an opportunity. In 1861 he used his savings to purchase the financially troubled Reliance Works at a sheriff's auction. Reliance Works was a leading manufacturer of sawmills, flour milling equipment, and castings. Before 1857, Reliance had been one of Milwaukee's largest employers with a workforce of about 75.
During the 1860s, Reliance Works of Edward P. Allis & Co., as the company was called, employed about 40 people working 55 hours per week. Allis constructed a new plant in 1868, and one year later he purchased his biggest rival, Bay State Iron Manufacturing Co. The company enjoyed strong profits until the financial panic of 1873, during which Allis went bankrupt. Chiefly because of the goodwill and faith of his creditors, Allis successfully renegotiated his debt and eventually recovered from the depression. The company remained intact, and even enjoyed a period of strong growth during much of the 1880s. By 1889, Allis employed 1,500 workers and shipped about $3 million worth of equipment annually. Allis died on April 1 of that year. He is still recognized as a pioneer in several machinery industry segments.
A number of gifted inventors and managers contributed to Allis's business efforts during the late 1800s. George M. Hinkley, for example, was a talented engineer and salesman who joined Allis in 1873. Among his most notable inventions was the bandsaw, which replaced the circular saw in many milling applications. The innovation was credited with revolutionizing the logging industry at the time, and the great demand for the saw helped the Edward P. Allis Company achieve a global presence in the machinery industry. Throughout his career, Hinkley accrued 35 patents on a wide range of sawmill machinery and accessories. Other notable Allis Company inventors included William Dixon Gray, who invented important new milling devices, and Edwin Reynolds, a pioneer in steam engine technology.
OVERALL
Beta: 1.77
Market Cap (Mil.): $5,400.34
Shares Outstanding (Mil.): 94.78
Annual Dividend: --
Yield (%): --
FINANCIALS
AGCO.K Industry Sector
P/E (TTM): 19.03 23.36 15.79
EPS (TTM): 152.77 -- --
ROI: 7.11 8.36 2.81
ROE: 11.30 13.24 5.15
Statistics:
Public Company
Incorporated: 1985 as Deutz-Allis Corp.
Employees: 11,300
Sales: $3.5 billion (2003)
Stock Exchanges: New York
Ticker Symbol: AG
NAIC: 333111 Farm Machinery and Equipment Manufacturing
Key Dates:
1901: Edward P. Allis Company merges with Fraser & Chalmers to form Allis-Chalmers Company, based in Milwaukee.
1913: Company name is changed to Allis-Chalmers Manufacturing Company.
1920s:Company enters the farm tractors market.
1971: Company changes its name to Allis-Chalmers Corp.
1984: Industry downturn leads to three-month shutdown of tractor and combine production plants.
1985: Farm equipment division is sold to Klöckner-Humboldt-Deutz AG (KHD); the German firm combines the division with its Deutz Farm Equipment subsidiary to form Deutz-Allis Corp.
1990: Robert Ratliff leads a management buyout of Deutz-Allis, which is soon operating as AGCO Corporation; headquarters are shifted to near Atlanta, Georgia.
1991: Acquisition spree begins with purchases of Hesston Corporation and White Tractor.
1992: One-half of AGCO's stock is sold via an initial public offering.
1993: AGCO purchases Massey Ferguson's North American operations.
1994: Company's stock listing shifts from the NASDAQ to the New York Stock Exchange; company buys the international operations of Massey Ferguson.
1997: Xaver Fendt GmbH & Co. KG, the leading German tractor maker, is acquired.
2004: The Valtra tractor and diesel engine operations of the Finnish firm Kone Corporation are acquired for $756 million.
AGCO.N on New York Stock Exchange
56.98USD
28 Apr 2011
Price Change (% chg)
$-0.76 (-1.32%)
Prev Close
$56.98
Open
--
Day's High
$57.82
Day's Low
$55.20
Volume
1,134,312
Avg. Vol
1,858,531
52-wk High
$59.81
52-wk Low
$25.48
SEARCH STOCKS
SUMMARY
Name Age Since Current Position
Richenhagen, Martin 58 2006 Chairman of the Board, President, Chief Executive Officer
Beck, Andrew 47 2002 Chief Financial Officer, Senior Vice President
Hoffman, Randall 59 2005 Senior Vice President - Global Sales & Marketing and Product Management
Smith, Lucinda 44 2009 Senior Vice President - Human Resources
Collar, Gary 54 2009 Senior Vice President and General Manager, EAME and Australia/New Zealand
Muehlhaeuser, Hubertus 41 2009 SVP - Strategy & Integration, General Manager, Eastern Europe and Asia
Crain, Robert 51 2006 Senior Vice President and General Manager, North America
Ball, Garry 63 2002 Senior Vice President - Engineering
Caplan, David 63 2003 Senior Vice President - Materials Management, Worldwide
Carioba, Andre 60 2006 Senior Vice President and General Manager, South America
Veltmaat, Hans-Bernd 56 2008 Senior Vice President - Manufacturing & Quality
Johanneson, Gerald 70 2010 Lead Independent Director
Ustian, Daniel 60 2011 Director
Deml, Wolfgang 65 1999 Independent Director
Visser, Hendrikus 67 2000 Independent Director
Benson, P. George 64 2004 Independent Director
Shaheen, Gerald 66 2005 Independent Director
Minnich, George 61 2008 Independent Director
LaSorda, Thomas 56 2009 Independent Director
Furlan, Luiz Fernando 64 2010 Independent Director
Address:
4205 River Green Parkway
Duluth, Georgia 30096-2568
U.S.A.
AGCO Corporation (AGCO), incorporated in April 1991, is a manufacturer and distributor of agricultural equipment and related replacement parts worldwide. The Company sells a range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment and implements, and a line of diesel engines. AGCO’s products are marketed under a number of brands, including Challenger, Fendt, Massey Ferguson and Valtra. The Company operates through four segments: North America; South America; Europe/Africa/Middle East, and Rest of World. The Rest of World reportable segment includes the regions of Eastern Europe, Asia, Australia and New Zealand. On December 15, 2010, AGCO acquired Sparex Holding Ltd, (Sparex). On January 3, 2011, the Company acquired 50% of AGCO-Amity JV, LLC (AGCO-Amity JV).
AGCO distributes its products through 2,650 independent dealers and distributors in more than 140 countries. In addition, AGCO provides retail financing in the United States, Canada, Brazil, Germany, France, the United Kingdom, Australia, Ireland and Austria, through its retail finance joint ventures with Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank).
Tractors
AGCO’s compact tractors (under 40 horsepower) are used on small farms and in specialty agricultural industries, such as dairies, landscaping and residential areas. The Company also offers a range of tractors in the utility tractor category (40 to 100 horsepower), including two-wheel and all-wheel drive versions. Its utility tractors are used on small- and medium-sized farms and in specialty agricultural industries, including dairy, livestock, orchards and vineyards. In addition, AGCO offers a range of tractors in the high horsepower segment (primarily 100 to 585 horsepower). High horsepower tractors are used on larger farms and on cattle ranches for hay production. During the year ended December 31, 2010, tractors accounted for approximately 68% of its net sales.
Combines
The Company’s combines are sold with a range of threshing technologies. During 2010, combines accounted for approximately 6% of its net sales. The Company’s 50% investment in Laverda S.p.A. (Laverda), which is an operating joint venture between AGCO and the Italian ARGO group, is located in Breganze, Italy and manufactures harvesting equipment. In addition to producing Laverda branded combines, the Breganze factory manufactures mid-range combine harvesters for its Massey Ferguson, Fendt and Challenger brands for distribution in Europe, Africa and the Middle East.
Application Equipment
AGCO offers self-propelled, three- and four-wheeled vehicles and related equipment for use in the application of liquid and dry fertilizers and crop protection chemicals. The Company manufactures chemical sprayer equipment for use both prior to planting crops and after crops emerge from the ground. The Company also manufactures related equipment, including vehicles used for waste application that are designed for subsurface liquid injection and surface spreading of biosolids, such as sewage sludge and other farm or industrial waste. During 2010, application equipment accounted for approximately 4% of its net sales.
Hay Tools and Forage Equipment, Implements, Engines and Other Products
AGCO’s hay tools and forage equipment include both round and rectangular balers, self-propelled windrowers, disc mowers, spreaders and mower conditioners and are used for the harvesting and packaging of vegetative feeds used in the beef cattle, dairy, horse and alternative fuel industries. It also distributes a range of implements, planters and other equipment for its product lines. Tractor-pulled implements are used in field preparation and crop management. Implements include disc harrows, which improve field performance by cutting through crop residue, leveling seed beds and mixing chemicals with the soil; heavy tillage, which break up soil and mix crop residue into topsoil, with or without prior discing, and field cultivators, which prepare a smooth seed bed and destroy weeds. Tractor-pulled planters apply fertilizer and place seeds in the field. Other equipment primarily includes loaders, which are used for lifting and transporting hay crops.
The Company provides a range of precision farming technologies that are developed, manufactured and distributed worldwide. AGCO also offers other advanced technology precision farming products that gather information, such as yield data, allowing its customers to produce yield maps for the purpose of maximizing planting and fertilizer applications. Many of the Company’s tractors, combines, planters and sprayers are equipped with these precision farming technologies at the customer’s option. Its AGCO Sisu Power engines division produces diesel engines, gears and generating sets. The diesel engines are manufactured for use in Valtra tractors and certain other branded tractors, combines and sprayers, as well as for sale to third parties. The engine division specializes in the manufacturing of off-road engines in the 50 to 500 horsepower range. During 2010, hay tools and forage equipment, implements, engines and other products accounted for approximately 7% of its net sales.
Replacement Parts
In addition to sales of new equipment, AGCO sells replacement parts for all of the products it sells. During 2010, replacement parts accounted for approximately 15% of the Company’s net sales.
Europe
The Company markets and distributes farm machinery, equipment and replacement parts to farmers in European markets, through a network of approximately 1,100 independent dealers and distributors. AGCO also sells Valtra tractors and parts directly to the end user. Its tractor manufacturing operations in Europe are located in Suolahti, Finland; Beauvais, France, and Marktoberdorf, Germany. During 2010, sales in Europe accounted for approximately 47% of its net sales.
North America
AGCO markets and distributes farm machinery, equipment and replacement parts to farmers in North America, through a network of approximately 950 independent dealers. AGCO’s manufacturing operations in North America are located in Beloit, Kansas; Hesston, Kansas; Jackson, Minnesota, and Queretaro, Mexico. During 2010, sales in North America accounted for approximately 22% of its net sales.
South America
The Company markets and distributes farm machinery, equipment and replacement parts to farmers in South America through different networks. In Brazil and Argentina, AGCO distributes products directly to approximately 325 independent dealers. Outside of Brazil and Argentina, the Company sells its products in South America through independent distributors. The Company’s manufacturing operations in South America are located in Brazil. In Canoas, Rio Grande do Sul, Brazil. During 2010, sales in South America accounted for approximately 25% of its net sales.
Rest of the World
Outside Europe, North America and South America, AGCO operates primarily through a network of approximately 275 independent dealers and distributors, as well as associates and licensees, marketing its products and providing customer service support in approximately 85 countries in Africa, the Middle East, Australia and Asia. During 2010, sales outside Europe, North America and South America accounted for approximately 6% of its net sales.
The Allis-Chalmers Corp. was the progeny of an American named Edward P. Allis. Allis was born in New York in 1824 and graduated from Geneva College in 1845. After college, Allis and a friend, William Allen, moved to Milwaukee, Wisconsin, where they opened the Empire Leather Store. This venture was a natural progression for Allis because his family was already involved in the leather business in that area. Through either sheer luck or great foresight, Allis sold his interest in Empire Leather shortly before the financial panic of 1857. A number of businesses, including Empire Leather, failed during the economic downturn. For the cash-rich Allis, the disaster was an opportunity. In 1861 he used his savings to purchase the financially troubled Reliance Works at a sheriff's auction. Reliance Works was a leading manufacturer of sawmills, flour milling equipment, and castings. Before 1857, Reliance had been one of Milwaukee's largest employers with a workforce of about 75.
During the 1860s, Reliance Works of Edward P. Allis & Co., as the company was called, employed about 40 people working 55 hours per week. Allis constructed a new plant in 1868, and one year later he purchased his biggest rival, Bay State Iron Manufacturing Co. The company enjoyed strong profits until the financial panic of 1873, during which Allis went bankrupt. Chiefly because of the goodwill and faith of his creditors, Allis successfully renegotiated his debt and eventually recovered from the depression. The company remained intact, and even enjoyed a period of strong growth during much of the 1880s. By 1889, Allis employed 1,500 workers and shipped about $3 million worth of equipment annually. Allis died on April 1 of that year. He is still recognized as a pioneer in several machinery industry segments.
A number of gifted inventors and managers contributed to Allis's business efforts during the late 1800s. George M. Hinkley, for example, was a talented engineer and salesman who joined Allis in 1873. Among his most notable inventions was the bandsaw, which replaced the circular saw in many milling applications. The innovation was credited with revolutionizing the logging industry at the time, and the great demand for the saw helped the Edward P. Allis Company achieve a global presence in the machinery industry. Throughout his career, Hinkley accrued 35 patents on a wide range of sawmill machinery and accessories. Other notable Allis Company inventors included William Dixon Gray, who invented important new milling devices, and Edwin Reynolds, a pioneer in steam engine technology.
OVERALL
Beta: 1.77
Market Cap (Mil.): $5,400.34
Shares Outstanding (Mil.): 94.78
Annual Dividend: --
Yield (%): --
FINANCIALS
AGCO.K Industry Sector
P/E (TTM): 19.03 23.36 15.79
EPS (TTM): 152.77 -- --
ROI: 7.11 8.36 2.81
ROE: 11.30 13.24 5.15
Statistics:
Public Company
Incorporated: 1985 as Deutz-Allis Corp.
Employees: 11,300
Sales: $3.5 billion (2003)
Stock Exchanges: New York
Ticker Symbol: AG
NAIC: 333111 Farm Machinery and Equipment Manufacturing
Key Dates:
1901: Edward P. Allis Company merges with Fraser & Chalmers to form Allis-Chalmers Company, based in Milwaukee.
1913: Company name is changed to Allis-Chalmers Manufacturing Company.
1920s:Company enters the farm tractors market.
1971: Company changes its name to Allis-Chalmers Corp.
1984: Industry downturn leads to three-month shutdown of tractor and combine production plants.
1985: Farm equipment division is sold to Klöckner-Humboldt-Deutz AG (KHD); the German firm combines the division with its Deutz Farm Equipment subsidiary to form Deutz-Allis Corp.
1990: Robert Ratliff leads a management buyout of Deutz-Allis, which is soon operating as AGCO Corporation; headquarters are shifted to near Atlanta, Georgia.
1991: Acquisition spree begins with purchases of Hesston Corporation and White Tractor.
1992: One-half of AGCO's stock is sold via an initial public offering.
1993: AGCO purchases Massey Ferguson's North American operations.
1994: Company's stock listing shifts from the NASDAQ to the New York Stock Exchange; company buys the international operations of Massey Ferguson.
1997: Xaver Fendt GmbH & Co. KG, the leading German tractor maker, is acquired.
2004: The Valtra tractor and diesel engine operations of the Finnish firm Kone Corporation are acquired for $756 million.
AGCO.N on New York Stock Exchange
56.98USD
28 Apr 2011
Price Change (% chg)
$-0.76 (-1.32%)
Prev Close
$56.98
Open
--
Day's High
$57.82
Day's Low
$55.20
Volume
1,134,312
Avg. Vol
1,858,531
52-wk High
$59.81
52-wk Low
$25.48
SEARCH STOCKS
SUMMARY
Name Age Since Current Position
Richenhagen, Martin 58 2006 Chairman of the Board, President, Chief Executive Officer
Beck, Andrew 47 2002 Chief Financial Officer, Senior Vice President
Hoffman, Randall 59 2005 Senior Vice President - Global Sales & Marketing and Product Management
Smith, Lucinda 44 2009 Senior Vice President - Human Resources
Collar, Gary 54 2009 Senior Vice President and General Manager, EAME and Australia/New Zealand
Muehlhaeuser, Hubertus 41 2009 SVP - Strategy & Integration, General Manager, Eastern Europe and Asia
Crain, Robert 51 2006 Senior Vice President and General Manager, North America
Ball, Garry 63 2002 Senior Vice President - Engineering
Caplan, David 63 2003 Senior Vice President - Materials Management, Worldwide
Carioba, Andre 60 2006 Senior Vice President and General Manager, South America
Veltmaat, Hans-Bernd 56 2008 Senior Vice President - Manufacturing & Quality
Johanneson, Gerald 70 2010 Lead Independent Director
Ustian, Daniel 60 2011 Director
Deml, Wolfgang 65 1999 Independent Director
Visser, Hendrikus 67 2000 Independent Director
Benson, P. George 64 2004 Independent Director
Shaheen, Gerald 66 2005 Independent Director
Minnich, George 61 2008 Independent Director
LaSorda, Thomas 56 2009 Independent Director
Furlan, Luiz Fernando 64 2010 Independent Director
Address:
4205 River Green Parkway
Duluth, Georgia 30096-2568
U.S.A.