达达布难民营由三个开放的难民营组成,两个难民营在难民遣返和联合国难民署(难民署)巩固难民营之后永久关闭。难民署和肯尼亚红十字会作为整个非洲大陆的主要人道主义机构,仍然在难民区开展卫生干预和环境恢复工作。&“确保最脆弱人口的生计仍然是肯尼亚红十字会的一个关键重点,粮食安全一直是达达布难民营及其周围地区的一个重大挑战。因此,我们感谢AGCO农业基金会的及时干预,旨在增加牧场生产、粮食生产、营养和减少难民和收容社区的粮食安全危机,”肯尼亚红十字会秘书长阿莎·穆罕默德博士说与难民署和加里萨肯尼亚县政府一道执行。“我们与KRCS的伙伴关系以及共同促进达达阿布地方粮食安全发展的目标也引起了荷兰Mechan Groep的注意。作为农业机械和设备的主要经销商,该组织支持与农业业务密切相关的AAF计划,Richenhagen补充道。
关于AGCO农业基金会(AAF)
,由AGCO公司(NYSE:AGCO)发起的2018,是一个具有预防和缓解饥饿的私人基础。该基金会启动了支持粮食安全、促进可持续农业发展和在边缘化农业社区中建立所需农业基础设施的有效项目。AAF总部位于列支敦士登瓦杜兹,运营由美国乔治亚州杜卢斯管理。有关更多信息,请访问//www.namstec.com/commitment/sustainability/focus areas/communities.html“>//www.namstec.com/commitment/sustability/focus areas/communities.html社会(KRCS)。根据议会法案(肯尼亚法律第356章,1965年12月21日)成立的自愿人道主义组织“KRCS”对国家和县政府都是辅助性的。它与社区、志愿者和合作伙伴密切合作,确保有效提供人道主义应急和发展服务。KRCS的愿景是成为一个可持续、有效和值得信赖的人道主义组织,为今世后代服务。KRCS的工作遵循四个核心价值观,包括:为人类服务;诚信;尊重和创新。价值主张是“永远存在”;。https://www.redcross.or.ke/about us
2020年将看到芬特参加在德国更多的贸易展览会和活动,国际和全球比以往任何时候都面前。在巴黎的SIMA博览会已经提出了从2021春秋季到2020年,与中央农业节在慕尼黑,2020年交易会日历正在果然很旺。芬特还规划了欧洲巡演在2020年夏天持续数月,在与AGRITECHNICA推出新的芬特300 VARIO和芬特700 VARIO系列,加上FendtONE系统达到高潮。鉴于这样一个繁忙的议程,主办方Saaten,联盟公司和AGCO /芬特已经决定推迟下一个伟大的芬特场日在Wadenbrunn直到2022年。 P>
您的农业公司AGCO(纽约证券交易所:AGCO)是一家全球农业设备和解决方案的制造商和分销商,报告2019年第四季度的净销售额约为25亿美元,与2018年第四季度相比下降约3.0%。2019年第四季度报告的净亏损为每股1.17美元,扣除非现金减值费用、重组费用和税收收益后的调整后净收入为每股0.94美元。这些结果与报告的2018年第四季度每股净收入1.26美元和调整后净收入(不包括重组费用、债务退休成本和美国税收改革福利)相比,为每股1.31美元。剔除约2.4%的不利货币换算影响,2019年第四季度的净销售额与2018年第四季度相比下降约0.6%。2019年第四季度,AGCO记录的非现金商誉和无形资产减值费用约为1.766亿美元,或每股2.33美元,主要与公司的欧洲谷物和蛋白质业务有关。
2019年全年净销售额约为90亿美元,与2018年相比,下降了约3.3%。剔除约4.2%的不利货币换算影响,2019年全年净销售额较2018年增长约0.8%。2019年全年,报告的净收入为每股1.63美元,调整后净收入(3),不包括非现金减值费用、重组费用和某些税费和收益,为每股4.44美元。这些结果与报告的2018年每股净收入3.58美元和调整后净收入(不包括重组费用、债务退休成本和美国税收改革福利)相比,每股净收入为3.89美元。
亮点
(1)。 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| Industry Unit Retail Sales | ||
|
| Tractors |
| Combines |
Year ended December 31, 2019 |
| Change from Prior Year Period |
| Change from Prior Year Period |
North America(1) |
| (1)% |
| (6)% |
South America |
| (16)% |
| (5)% |
Western Europe(2) |
| (2)% |
| (18)% |
(1) Excludes compact tractors. |
(2) Based on Company estimates. |
“A late harvest and lower crop production in North America were mostly offset by better production in Brazil and the European Union, keeping grain inventories relatively high and pressuring commodity prices during 2019,” continued Mr. Richenhagen. “Global industry retail sales of farm equipment in 2019 were lower across AGCO’s key markets with fourth quarter industry retail sales significantly lower than the prior year in both Europe and South America. For the full year, industry retail sales were down modestly in North America during 2019 due to a difficult growing season and concerns involving trade. The USDA is projecting 2020 farm income in the U.S. to remain challenged due to low commodity prices and uncertainty with Market Facilitation Program payments. We project North American industry tractor sales to be modestly down in 2020 compared to 2019. In Western Europe, industry demand trended progressively lower throughout 2019 due to the impact of lower wheat and milk prices and higher input costs for dairy producers. Industry sales declines across most of Western Europe were partially offset by growth in France, Finland and Spain. For 2020, EU farm income is expected to be down modestly driven primarily by lower milk prices, partially offset by more normal crop production. Based on these assumptions, we expect sentiment to remain weak and 2020 industry demand to continue to soften modestly across the European markets. Industry sales in Australia and New Zealand were down significantly in 2019 from 2018 levels to due drought conditions and will likely remain down in 2020. Fourth quarter industry retail sales in Brazil did not recover as we expected, resulting in a strong decline for the full year. Industry demand is expected to improve in Brazil in 2020. Brazilian farmers should benefit from a weaker Real and strong crop production, however, uncertainty around export demand and potential changes to the subsidized financing program are likely to temper farmer sentiment. Our long-term global view remains positive. Increasing demand for commodities, driven by the growing world population, rising emerging market protein consumption and biofuel use, are expected to support elevated farm income and healthy conditions in our industry.”
Regional Results
AGCO Regional Net Sales (in millions)
Three Months Ended December 31, |
| 2019 |
| 2018 |
| % change |
| % change from |
| % change | ||||
North America |
| $ | 540.5 |
|
| $ | 531.2 |
|
| 1.8% |
| 0.1% |
| 1.6% |
South America |
| 220.9 |
|
| 276.2 |
|
| (20.0)% |
| (5.4)% |
| (14.6)% | ||
EME |
| 1,515.3 |
|
| 1,511.7 |
|
| 0.2% |
| (2.7)% |
| 3.0% | ||
APA |
| 236.9 |
|
| 273.1 |
|
| (13.3)% |
| (2.5)% |
| (10.8)% | ||
Total |
| $ | 2,513.6 |
|
| $ | 2,592.2 |
|
| (3.0)% |
| (2.4)% |
| (0.6)% |
|
|
|
|
|
|
|
|
|
|
| ||||
Year Ended December 31, |
| 2019 |
| 2018 |
| % change |
| % change from |
| % change | ||||
North America |
| $ | 2,191.8 |
|
| $ | 2,180.1 |
|
| 0.5% |
| (0.4)% |
| 0.9% |
South America |
| 802.2 |
|
| 959.0 |
|
| (16.4)% |
| (5.2)% |
| (11.1)% | ||
EME |
| 5,328.8 |
|
| 5,385.1 |
|
| (1.0)% |
| (5.5)% |
| 4.4% | ||
APA |
| 718.6 |
|
| 827.8 |
|
| (13.2)% |
| (4.3)% |
| (8.9)% | ||
Total |
| $ | 9,041.4 |
|
| $ | 9,352.0 |
|
| (3.3)% |
| (4.2)% |
| 0.8% |
(1) See Footnotes for additional disclosures |
|
|
|
|
|
|
|
|
|
|
North America
Net sales in the North American region increased 0.9% for the full year of 2019 compared to 2018, excluding the negative impact of currency translation. Increased sales of compact tractors, combines and parts were mostly offset by lower sales of protein production equipment and utility tractors. Income from operations for the full year of 2019 improved approximately $18.5 million compared to 2018. The benefit of improved pricing and cost control initiatives contributed to operating margin improvement.
South America
AGCO’s South American net sales decreased 11.1% for the full year of 2019 compared to 2018, excluding the impact of unfavorable currency translation. The loss from operations increased approximately $29.3 million for the full year of 2019 compared to 2018. The South America results reflect low levels of industry demand and company production, as well as unfavorable cost impacts of newer product technology into our Brazilian factories.
Europe/Middle East
AGCO’s Europe/Middle East net sales increased 4.4% in the full year of 2019 compared to 2018, excluding unfavorable currency translation impacts. Sales growth in France, Germany and Italy was partially offset by declines in the United Kingdom and Eastern Europe. Income from operations increased approximately $37.1 million for the full year of 2019 compared to 2018, due to the benefit of higher sales and margin improvement resulting from pricing, improved factory productivity and a favorable sales mix.
Asia/Pacific/Africa
Asia/Pacific/Africa net sales decreased 8.9%, excluding the negative impact of currency translation, in the full year of 2019 compared to 2018. Lower sales in China, South East Asia and Africa accounted for most of the decline. Income from operations dropped approximately $6.2 million for the full year of 2019 compared to 2018, due to lower sales and production.
Outlook
AGCO’s net sales for 2020 are expected to reach approximately $9.2 billion reflecting improved sales volumes and positive pricing. Gross and operating margins are expected to improve from 2019 levels, reflecting the positive impact of pricing and cost reduction efforts. Based on these assumptions, 2020 earnings per share is targeted in a range from $5.00 to $5.20.
* * * * *
AGCO will host a conference call with respect to this earnings announcement at 10:00 a.m. Eastern Time on Thursday, February 6th. The Company will refer to slides on its conference call. Interested persons can access the conference call and slide presentation via AGCO’s website at www.namstec.com in the “Events” section on the “Company/Investors” page of our website. A replay of the conference call will be available approximately two hours after the conclusion of the conference call for twelve months following the call. A copy of this press release will be available on AGCO’s website for at least twelve months following the call.
* * * * *
Safe Harbor Statement
Statements that are not historical facts, including the projections of earnings per share, sales, industry demand, market conditions, commodity prices, currency translation, farm income levels, margin levels, investments in product and technology development, new product introductions, restructuring and other cost reduction initiatives, production volumes, tax rates and general economic conditions, are forward-looking and subject to risks that could cause actual results to differ materially from those suggested by the statements. The following are among the factors that could cause actual results to differ materially from the results discussed in or implied by the forward-looking statements.
Further information concerning these and other factors is included in AGCO’s filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2018 and subsequent Form 10-Qs. AGCO disclaims any obligation to update any forward-looking statements except as required by law.
* * * * *
About AGCO
AGCO (NYSE: AGCO) is a global leader in the design, manufacture and distribution of agricultural solutions and delivers high-tech solutions for farmers feeding the world through its full line of equipment and related services. AGCO products are sold through five core brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®, supported by Fuse® smart farming solutions. Founded in 1990 and headquartered in Duluth, Georgia, USA, AGCO had net sales of $9.0 billion in 2019. For more information, visit http://www.AGCOcorp.com. For company news, information and events, please follow us on Twitter: @AGCOCorp. For financial news on Twitter, please follow the hashtag #AGCOIR.
Please visit our website at www.namstec.com
AGCO CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited and in millions) | |||||||
| December 31, 2019 |
| December 31, 2018 | ||||
ASSETS |
|
|
| ||||
Current Assets: |
|
|
| ||||
Cash and cash equivalents | $ | 432.8 |
|
| $ | 326.1 |
|
Accounts and notes receivable, net | 800.5 |
|
| 880.3 |
| ||
Inventories, net | 2,078.7 |
|
| 1,908.7 |
| ||
Other current assets | 417.1 |
|
| 422.3 |
| ||
Total current assets | 3,729.1 |
|
| 3,537.4 |
| ||
Property, plant and equipment, net | 1,416.3 |
|
| 1,373.1 |
| ||
Right-of-use lease assets | 187.3 |
|
| — |
| ||
Investment in affiliates | 380.2 |
|
| 400.0 |
| ||
Deferred tax assets | 93.8 |
|
| 104.9 |
| ||
Other assets | 153.0 |
|
| 142.4 |
| ||
Intangible assets, net | 501.7 |
|
| 573.1 |
| ||
Goodwill | 1,298.3 |
|
| 1,495.5 |
| ||
Total assets | $ | 7,759.7 |
|
| $ | 7,626.4 |
|
|
|
|
| ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
| ||||
Current Liabilities: |
|
|
| ||||
Current portion of long-term debt | $ | 2.9 |
|
| $ | 72.6 |
|
Short-term borrowings | 150.5 |
|
| 138.0 |
| ||
Accounts payable | 914.8 |
|
| 865.9 |
| ||
Accrued expenses | 1,654.2 |
|
| 1,522.4 |
| ||
Other current liabilities | 162.1 |
|
| 167.8 |
| ||
Total current liabilities | 2,884.5 |
|
| 2,766.7 |
| ||
Long-term debt, less current portion and debt issuance costs | 1,191.8 |
|
| 1,275.3 |
| ||
Operating lease liabilities | 148.6 |
|
| — |
| ||
Pension and postretirement health care benefits | 232.1 |
|
| 223.2 |
| ||
Deferred tax liabilities | 107.0 |
|
| 116.3 |
| ||
Other noncurrent liabilities | 288.7 |
|
| 251.4 |
| ||
Total liabilities | 4,852.7 |
|
| 4,632.9 |
| ||
|
|
|
| ||||
Stockholders’ Equity: |
|
|
| ||||
AGCO Corporation stockholders’ equity: |
|
|
| ||||
Common stock | 0.8 |
|
| 0.8 |
| ||
Additional paid-in capital | 4.7 |
|
| 10.2 |
| ||
Retained earnings | 4,443.5 |
|
| 4,477.3 |
| ||
Accumulated other comprehensive loss | (1,595.2 | ) |
| (1,555.4 | ) | ||
Total AGCO Corporation stockholders’ equity | 2,853.8 |
|
| 2,932.9 |
| ||
Noncontrolling interests | 53.2 |
|
| 60.6 |
| ||
Total stockholders’ equity | 2,907.0 |
|
| 2,993.5 |
| ||
Total liabilities and stockholders’ equity | $ | 7,759.7 |
|
| $ | 7,626.4 |
|
See accompanying notes to condensed consolidated financial statements. | |||||||
AGCO CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in millions, except per share data) | |||||||
| Three Months Ended December 31, | ||||||
| 2019 |
| 2018 | ||||
Net sales | $ | 2,513.6 |
|
| $ | 2,592.2 |
|
Cost of goods sold | 2,000.1 |
|
| 2,053.5 |
| ||
Gross profit | 513.5 |
|
| 538.7 |
| ||
Selling, general and administrative expenses | 272.4 |
|
| 272.5 |
| ||
Engineering expenses | 89.1 |
|
| 88.0 |
| ||
Impairment charges | 176.6 |
|
| — |
| ||
Amortization of intangibles | 15.5 |
|
| 15.5 |
| ||
Restructuring expenses | 6.0 |
|
| 1.9 |
| ||
Bad debt expense | 3.7 |
|
| 1.7 |
| ||
(Loss) income from operations | (49.8 | ) |
| 159.1 |
| ||
Interest expense, net | 4.0 |
|
| 15.3 |
| ||
Other expense, net | 20.1 |
|
| 17.1 |
| ||
(Loss) income before income taxes and equity in net earnings of affiliates | (73.9 | ) |
| 126.7 |
| ||
Income tax provision | 25.0 |
|
| 37.1 |
| ||
(Loss) income before equity in net earnings of affiliates | (98.9 | ) |
| 89.6 |
| ||
Equity in net earnings of affiliates | 9.3 |
|
| 8.0 |
| ||
Net (loss) income | (89.6 | ) |
| 97.6 |
| ||
Net loss attributable to noncontrolling interests | 1.3 |
|
| 1.1 |
| ||
Net (loss) income attributable to AGCO Corporation and subsidiaries | $ | (88.3 | ) |
| $ | 98.7 |
|
Net (loss) income per common share attributable to AGCO Corporation and subsidiaries: |
|
| |||||
Basic | $ | (1.17 | ) |
| $ | 1.28 |
|
Diluted | $ | (1.17 | ) |
| $ | 1.26 |
|
Cash dividends declared and paid per common share | $ | 0.16 |
|
| $ | 0.15 |
|
Weighted average number of common and common equivalent shares outstanding: |
|
|
| ||||
Basic | 75.6 |
|
| 77.4 |
| ||
Diluted | 75.6 |
|
| 78.6 |
| ||
See accompanying notes to condensed consolidated financial statements. | |||||||
AGCO CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in millions, except per share data) | |||||||
| Years Ended December 31, | ||||||
| 2019 |
| 2018 | ||||
Net sales | $ | 9,041.4 |
|
| $ | 9,352.0 |
|
Cost of goods sold | 7,057.1 |
|
| 7,355.3 |
| ||
Gross profit | 1,984.3 |
|
| 1,996.7 |
| ||
Selling, general and administrative expenses | 1,040.3 |
|
| 1,069.4 |
| ||
Engineering expenses | 343.4 |
|
| 355.2 |
| ||
Impairment charges | 176.6 |
|
| — |
| ||
Amortization of intangibles | 61.1 |
|
| 64.7 |
| ||
Restructuring expenses | 9.0 |
|
| 12.0 |
| ||
Bad debt expense | 5.8 |
|
| 6.4 |
| ||
Income from operations | 348.1 |
|
| 489.0 |
| ||
Interest expense, net | 19.9 |
|
| 53.8 |
| ||
Other expense, net | 67.1 |
|
| 74.9 |
| ||
Income before income taxes and equity in net earnings of affiliates | 261.1 |
|
| 360.3 |
| ||
Income tax provision | 180.8 |
|
| 110.9 |
| ||
Income before equity in net earnings of affiliates | 80.3 |
|
| 249.4 |
| ||
Equity in net earnings of affiliates | 42.5 |
|
| 34.3 |
| ||
Net income | 122.8 |
|
| 283.7 |
| ||
Net loss attributable to noncontrolling interests | 2.4 |
|
| 1.8 |
| ||
Net income attributable to AGCO Corporation and subsidiaries | $ | 125.2 |
|
| $ | 285.5 |
|
Net income per common share attributable to AGCO Corporation and subsidiaries: |
|
|
| ||||
Basic | $ | 1.64 |
|
| $ | 3.62 |
|
Diluted | $ | 1.63 |
|
| $ | 3.58 |
|
Cash dividends declared and paid per common share | $ | 0.63 |
|
| $ | 0.60 |
|
Weighted average number of common and common equivalent shares outstanding: |
|
|
| ||||
Basic | 76.2 |
|
| 78.8 |
| ||
Diluted | 77.0 |
|
| 79.7 |
| ||
See accompanying notes to condensed consolidated financial statements. | |||||||
AGCO CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in millions) | |||||||
| Years Ended December 31, | ||||||
| 2019 |
| 2018 | ||||
Cash flows from operating activities: |
|
|
| ||||
Net income | $ | 122.8 |
|
| $ | 283.7 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
| ||||
Depreciation | 210.9 |
|
| 225.2 |
| ||
Impairment charges | 176.6 |
|
| — |
| ||
Amortization of intangibles | 61.1 |
|
| 64.7 |
| ||
Stock compensation expense | 41.3 |
|
| 46.3 |
| ||
Equity in net earnings of affiliates, net of cash received | — |
|
| (3.2 | ) | ||
Deferred income tax provision (benefit) | 15.1 |
|
| (14.7 | ) | ||
Loss on extinguishment of debt | — |
|
| 24.5 |
| ||
Other | 6.9 |
|
| 2.6 |
| ||
Changes in operating assets and liabilities: |
|
|
| ||||
Accounts and notes receivable, net | 63.8 |
|
| 63.3 |
| ||
Inventories, net | (216.3 | ) |
| (214.3 | ) | ||
Other current and noncurrent assets | (14.4 | ) |
| (85.6 | ) | ||
Accounts payable | 35.7 |
|
| (24.3 | ) | ||
Accrued expenses | 114.5 |
|
| 161.3 |
| ||
Other current and noncurrent liabilities | 77.9 |
|
| 66.4 |
| ||
Total adjustments | 573.1 |
|
| 312.2 |
| ||
Net cash provided by operating activities | 695.9 |
|
| 595.9 |
| ||
Cash flows from investing activities: |
|
|
| ||||
Purchases of property, plant and equipment | (273.4 | ) |
| (203.3 | ) | ||
Proceeds from sale of property, plant and equipment | 4.9 |
|
| 3.2 |
| ||
Investment in unconsolidated affiliates | (3.1 | ) |
| (5.8 | ) | ||
Other | — |
|
| 0.4 |
| ||
Net cash used in investing activities | (271.6 | ) |
| (205.5 | ) | ||
Cash flows from financing activities: |
|
|
| ||||
Repayments of indebtedness, net | (108.4 | ) |
| (176.1 | ) | ||
Purchases and retirement of common stock | (130.0 | ) |
| (184.3 | ) | ||
Payment of dividends to stockholders | (48.0 | ) |
| (47.1 | ) | ||
Payment of minimum tax withholdings on stock compensation | (28.1 | ) |
| (4.0 | ) | ||
Payment of debt issuance costs | (0.5 | ) |
| (2.7 | ) | ||
Investments by noncontrolling interests, net | 1.6 |
|
| 0.9 |
| ||
Net cash used in financing activities | (313.4 | ) |
| (413.3 | ) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4.2 | ) |
| (18.7 | ) | ||
Increase (decrease) in cash, cash equivalents and restricted cash | 106.7 |
|
| (41.6 | ) | ||
Cash, cash equivalents and restricted cash, beginning of year | 326.1 |
|
| 367.7 |
| ||
Cash, cash equivalents and restricted cash, end of year | $ | 432.8 |
|
| $ | 326.1 |
|
See accompanying notes to condensed consolidated financial statements. | |||||||
AGCO CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions, except share amounts, per share data and employees)
1. STOCK COMPENSATION EXPENSE
The Company recorded stock compensation expense as follows (in millions):
| Three Months Ended December 31, |
| Years Ended December 31, | ||||||||||||
| 2019 |
| 2018 |
| 2019 |
| 2018 | ||||||||
Cost of goods sold | $ | 0.4 |
|
| $ | (0.4 | ) |
| $ | 1.7 |
|
| $ | 2.3 |
|
Selling, general and administrative expenses | 8.0 |
|
| 13.7 |
|
| 40.0 |
|
| 44.3 |
| ||||
Total stock compensation expense | $ | 8.4 |
|
| $ | 13.3 |
|
| $ | 41.7 |
|
| $ | 46.6 |
|
2. GOODWILL AND OTHER INTANGIBLES IMPAIRMENT CHARGES
During the three months ended December 31, 2019, the Company recorded a non-cash impairment charge of approximately $173.6 million within “Impairment charges” in the Company’s Condensed Consolidated Statements of Operations related to goodwill associated with its grain storage and protein production system operations (“grain and protein business”) in Europe/Middle East. As part of the Company’s annual impairment evaluation of goodwill, the Company concluded that it was more likely than not that the fair value of the reporting unit was less than its carrying amount. This was primarily as a result of a review of current and recently projected market conditions and operating results of the business. The quantitative goodwill impairment analysis was performed in accordance with the provisions of Accounting Standards Codification (“ASC”) 350, “Intangibles - Goodwill and Other” and Accounting Standards Update (“ASU”) 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017 - 04”).
During the three months ended December 31, 2019, the Company also recorded a non-cash impairment charge of approximately $3.0 million within “Impairment charges” in the Company’s Condensed Consolidated Statements of Operations. The impairment charge related to certain long-lived intangible assets associated with the grain and protein business within Europe/Middle East and North America, due to the discontinuation of a certain brand name and related products and customers in accordance with ASC 360 “Impairment and Disposal of Long-Lived Assets.”
3. RESTRUCTURING EXPENSES
From 2014 through 2019, the Company announced and initiated several actions to rationalize employee headcount at various manufacturing facilities and administrative offices located in the U.S., Europe, South America, Africa and China in order to reduce costs in response to softening global market demand and lower production volumes. The aggregate headcount reduction was approximately 3,890 employees for the years 2014 to 2018. The Company had approximately $7.1 million of severance and related costs accrued as of December 31, 2018. During the year ended December 31, 2019, the Company recorded an additional $6.9 million of severance and related costs associated with these rationalizations, as well as the rationalization of its grain and protein business that was initiated during the fourth quarter of 2019. The restructuring expenses recorded during 2019 related to the termination of an additional 270 employees. During 2019, the Company paid approximately $7.3 million of severance and other related costs. The $6.9 million of expenses recorded during the year end December 31, 2019 included a $1.5 million write-down of property, plant and equipment. The remaining $4.8 million of accrued severance and other related costs as of December 31, 2019, inclusive of approximately $0.4 million of negative foreign currency translation impacts, are expected to be paid primarily during 2020.
In addition, during the three months ended December 31, 2019, the Company exited and sold it’s 50% interest in its USC, LLC joint venture to its joint venture partner for approximately $5.1 million. The operations of the joint venture were part of the Company’s grain storage and protein production system operations, and the decision to sell the Company’s 50% interest was a part of its overall rationalization activities of the grain storage and protein production systems operations discussed above. The Company recorded a loss of approximately $2.1 million associated with the sale, which was reflected within “Restructuring expenses” in the Company’s Condensed Consolidated Statements of Operations.
4. INDEBTEDNESS
Long-term debt at December 31, 2019 and 2018 consisted of the following (in millions):
| December 31, 2019 |
| December 31, 2018 | ||||
Senior term loan due 2022 | $ | 168.1 |
|
| $ | 171.5 |
|
Credit facility, expires 2023 | — |
|
| 114.4 |
| ||
1.002% Senior term loan due 2025 | 280.2 |
|
| — |
| ||
Senior term loans due between 2021 and 2028(1) | 736.2 |
|
| 815.3 |
| ||
1.056% Senior term loan due 2020 | — |
|
| 228.7 |
| ||
Other long-term debt | 12.5 |
|
| 20.6 |
| ||
Debt issuance costs | (2.3 | ) |
| (2.6 | ) | ||
| 1,194.7 |
|
| 1,347.9 |
| ||
Less: |
|
|
| ||||
Current portion of other long-term debt | (2.9 | ) |
| (8.8 | ) | ||
Senior term loans due 2019 | — |
|
| (63.8 | ) | ||
Total indebtedness, less current portion | $ | 1,191.8 |
|
| $ | 1,275.3 |
|
(1) Maturity date reflected as of December 31, 2019. |
As of December 31, 2019 and 2018, the Company had short-term borrowings due within one year of approximately $150.5 million and $138.0 million, respectively.
5. INVENTORIES
Inventories at December 31, 2019 and 2018 were as follows (in millions):
| December 31, 2019 |
| December 31, 2018 | ||||
Finished goods | $ | 780.1 |
|
| $ | 660.4 |
|
Repair and replacement parts | 611.5 |
|
| 587.3 |
| ||
Work in process | 213.4 |
|
| 217.5 |
| ||
Raw materials | 473.7 |
|
| 443.5 |
| ||
Inventories, net | $ | 2,078.7 |
|
| $ | 1,908.7 |
|
6. ACCOUNTS RECEIVABLE SALES AGREEMENTS
The Company had accounts receivable sales agreements that permit the sale, on an ongoing basis, of a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures. As of December 31, 2019 and 2018, the cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements was approximately $1.6 billion and $1.4 billion, respectively.
Losses on sales of receivables associated with the accounts receivable financing facilities discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $12.1 million and $42.4 million, respectively, during the three months and year ended December 31, 2019. Losses on sales of receivables associated with the accounts receivable financing facilities discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $11.8 million and $36.0 million, respectively, during the three months and year ended December 31, 2018.
The Company’s finance joint ventures in Europe, Brazil and Australia also provide wholesale financing directly to the Company’s dealers. As of December 31, 2019 and 2018, these finance joint ventures had approximately $104.3 million and $82.5 million, respectively, of outstanding accounts receivable associated with these arrangements. In addition, the Company sells certain trade receivables under factoring arrangements to other financial institutions around the world.
7. NET INCOME PER SHARE
A reconciliation of net (loss) income attributable to AGCO Corporation and subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net (loss) income per share for the three months and years ended December 31, 2019 and 2018 is as follows (in millions, except per share data):
| Three Months Ended |
| Years Ended | ||||||||||||
| 2019 |
| 2018 |
| 2019 |
| 2018 | ||||||||
Basic net (loss) income per share: |
|
|
|
|
|
|
| ||||||||
Net (loss) income attributable to AGCO Corporation and subsidiaries | $ | (88.3 | ) |
| $ | 98.7 |
|
| $ | 125.2 |
|
| $ | 285.5 |
|
Weighted average number of common shares outstanding | 75.6 |
|
| 77.4 |
|
| 76.2 |
|
| 78.8 |
| ||||
Basic net (loss) income per share attributable to AGCO Corporation and subsidiaries | $ | (1.17 | ) |
| $ | 1.28 |
|
| $ | 1.64 |
|
| $ | 3.62 |
|
Diluted net (loss) income per share: |
|
|
|
|
|
|
| ||||||||
Net (loss) income attributable to AGCO Corporation and subsidiaries | $ | (88.3 | ) |
| $ | 98.7 |
|
| $ | 125.2 |
|
| $ | 285.5 |
|
Weighted average number of common shares outstanding | 75.6 |
|
| 77.4 |
|
| 76.2 |
|
| 78.8 |
| ||||
Dilutive stock-settled appreciation rights, performance share awards and restricted stock units | — |
|
| 1.2 |
|
| 0.8 |
|
| 0.9 |
| ||||
Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net (loss) income per share | 75.6 |
|
| 78.6 |
|
| 77.0 |
|
| 79.7 |
| ||||
Diluted net (loss) income per share attributable to AGCO Corporation and subsidiaries | $ | (1.17 | ) |
| $ | 1.26 |
|
| $ | 1.63 |
|
| $ | 3.58 |
|
The weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net loss per share above do not include the impact of dilutive stock-settled appreciation rights, performance share awards and restricted stock units for the three months ended December 31, 2019 as the impact would have been antidilutive. The number of shares excluded from the weighted average number of common shares and common share equivalents outstanding was approximately 1.1 million shares for the three months ended December 31, 2019.
8. SEGMENT REPORTING
The Company’s four reportable segments distribute a full range of agricultural equipment and related replacement parts. The Company evaluates segment performance primarily based on income from operations. Sales for each segment are based on the location of the third-party customer. The Company’s selling, general and administrative expenses and engineering expenses are charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income from operations for one segment may not be comparable to another segment. Segment results for the three months and years ended December 31, 2019 and 2018 are as follows (in millions):
Three Months Ended December 31, |
| North America |
| South America |
| Europe/ |
| Asia/ |
|
Consolidated | ||||||||||
2019 |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net sales |
| $ | 540.5 |
|
| $ | 220.9 |
|
| $ | 1,515.3 |
|
| $ | 236.9 |
|
| $ | 2,513.6 |
|
Income (loss) from operations |
| 7.1 |
|
| (18.2 | ) |
| 179.7 |
|
| 21.5 |
|
| 190.1 |
| |||||
2018 |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net sales |
| $ | 531.2 |
|
| $ | 276.2 |
|
| $ | 1,511.7 |
|
| $ | 273.1 |
|
| $ | 2,592.2 |
|
Income from operations |
| 6.2 |
|
| 10.6 |
|
| 185.0 |
|
| 22.7 |
|
| 224.5 |
|
Years Ended December 31, |
| North America |
| South America |
| Europe/ |
| Asia/ |
|
Consolidated | ||||||||||
2019 |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net sales |
| $ | 2,191.8 |
|
| $ | 802.2 |
|
| $ | 5,328.8 |
|
| $ | 718.6 |
|
| $ | 9,041.4 |
|
Income (loss) from operations |
| 121.6 |
|
| (39.4 | ) |
| 638.2 |
|
| 43.4 |
|
| 763.8 |
| |||||
2018 |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net sales |
| $ | 2,180.1 |
|
| $ | 959.0 |
|
| $ | 5,385.1 |
|
| $ | 827.8 |
|
| $ | 9,352.0 |
|
Income (loss) from operations |
| 103.1 |
|
| (10.1 | ) |
| 601.1 |
|
| 49.6 |
|
| 743.7 |
|
A reconciliation from the segment information to the consolidated balances for income from operations is set forth below (in millions):
| Three Months Ended December 31, |
| Years Ended December 31, | ||||||||||||
| 2019 |
| 2018 |
| 2019 |
| 2018 | ||||||||
Segment income from operations | $ | 190.1 |
|
| $ | 224.5 |
|
| $ | 763.8 |
|
| $ | 743.7 |
|
Corporate expenses | (33.8 | ) |
| (34.3 | ) |
| (129.0 | ) |
| (133.7 | ) | ||||
Impairment charges | (176.6 | ) |
| — |
|
| (176.6 | ) |
| — |
| ||||
Amortization of intangibles | (15.5 | ) |
| (15.5 | ) |
| (61.1 | ) |
| (64.7 | ) | ||||
Stock compensation expense | (8.0 | ) |
| (13.7 | ) |
| (40.0 | ) |
| (44.3 | ) | ||||
Restructuring expenses | (6.0 | ) |
| (1.9 | ) |
| (9.0 | ) |
| (12.0 | ) | ||||
Consolidated (loss) income from operations | $ | (49.8 | ) |
| $ | 159.1 |
|
| $ | 348.1 |
|
| $ | 489.0 |
|
RECONCILIATION OF NON-GAAP MEASURES
This earnings release discloses adjusted income from operations, adjusted net income, adjusted net income per share, net sales on a constant currency basis and free cash flow, each of which exclude amounts that are typically included in the most directly comparable measure calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). A reconciliation of each of those measures to the most directly comparable GAAP measure is included below.
The following is a reconciliation of reported income from operations, net income and net income per share to adjusted income from operations, net income and net income per share for the three months and years ended December 31, 2019 and 2018 (in millions, except per share data):
| Three Months Ended December 31, | ||||||||||||||||||||||
| 2019 |
| 2018 | ||||||||||||||||||||
| Income From |
| Net |
| Net Income |
| Income From |
| Net |
| Net Income | ||||||||||||
As reported | $ | (49.8 | ) |
| $ | (88.3 | ) |
| $ | (1.17 | ) |
| $ | 159.1 |
|
| $ | 98.7 |
|
| $ | 1.26 |
|
Impairment charges(3) | 176.6 |
|
| 176.6 |
|
| 2.33 |
|
| — |
|
| — |
|
| — |
| ||||||
Restructuring expenses(4) | 6.0 |
|
| 5.8 |
|
| 0.08 |
|
| 1.9 |
|
| 1.4 |
|
| 0.02 |
| ||||||
Swiss tax reform(5) | — |
|
| (21.8 | ) |
| (0.29 | ) |
| — |
|
| — |
|
| — |
| ||||||
Extinguishment of debt(6)(7) | — |
|
| — |
|
| — |
|
| — |
|
| 11.7 |
|
| 0.15 |
| ||||||
U.S. tax reform(8) | — |
|
| — |
|
| — |
|
| — |
|
| (8.5 | ) |
| (0.11 | ) | ||||||
Weighted average share impact(9) | — |
|
| — |
|
| (0.01 | ) |
| — |
|
| — |
|
| — |
| ||||||
As adjusted | $ | 132.8 |
|
| $ | 72.2 |
|
| $ | 0.94 |
|
| $ | 161.0 |
|
| $ | 103.3 |
|
| $ | 1.31 |
|
(1) | Net income and net income per share amounts are after tax. |
(2) | Rounding may impact summation of amounts. |
(3) | During the three months ended December 31, 2019, the Company recorded impairment charges of approximately $176.6 million related primarily to its Europe/Middle East grain and protein business. |
(4)
| The restructuring expenses recorded during the three months ended December 31, 2019 related primarily to severance and other related costs associated with the Company’s rationalization of certain South American, U.S. and Chinese manufacturing operations and various administrative offices, as well as the rationalization of its grain and protein business. The restructuring expenses recorded during the three months ended December 31, 2018 related primarily to severance costs associated with the Company’s rationalization of certain European, South American and Chinese manufacturing operations and various administrative offices. |
(5) | During the three months ended December 31, 2019, the Company recognized a one-time income tax gain associated with the finalization of Swiss federal tax reform. |
(6) | During the three months ended December 31, 2018, the Company repurchased the remaining principal amount of approximately $114.1 million of its outstanding 57/8% senior notes. The repurchase resulted in a loss on extinguishment of debt of approximately $8.8 million, including associated fees, offset by approximately $1.7 million of accelerated amortization of the deferred gain related to a terminated interest rate swap instrument associated with the senior notes. |
(7) | During the three months ended December 31, 2018, the Company repaid its outstanding term loan under its former revolving credit and term loan facility. The Company recorded approximately $0.7 million associated with the write-off of deferred debt issuance costs and a loss of approximately $3.9 million from a terminated interest rate swap instrument related to the term loan. |
(8) | During the three months ended December 31, 2018, the Company finalized its calculations related to the December 2017 enactment of U.S. tax reform legislation and recorded a benefit of approximately $8.5 million. |
(9) | The weighted average share impact represents the impact of including dilutive common stock equivalents (as described in Note 7 above) in the “As adjusted” earnings per share calculation. |
| Years Ended December 31, | ||||||||||||||||||||||
| 2019 |
| 2018 | ||||||||||||||||||||
| Income From |
| Net |
| Net Income |
| Income From |
| Net |
| Net Income | ||||||||||||
As reported | $ | 348.1 |
|
| $ | 125.2 |
|
| $ | 1.63 |
|
| $ | 489.0 |
|
| $ | 285.5 |
|
| $ | 3.58 |
|
Impairment charges(3) | 176.6 |
|
| 176.6 |
|
| 2.29 |
|
| — |
|
| — |
|
| — |
| ||||||
Deferred income tax adjustment(4) | — |
|
| 53.7 |
|
| 0.70 |
|
| — |
|
| — |
|
| — |
| ||||||
Restructuring expenses(5) | 9.0 |
|
| 8.3 |
|
| 0.11 |
|
| 12.0 |
|
| 8.7 |
|
| 0.11 |
| ||||||
Swiss tax reform(6) | — |
|
| (21.8 | ) |
| (0.28 | ) |
| — |
|
| — |
|
| — |
| ||||||
Extinguishment of debt(7)(8) | — |
|
| — |
|
| — |
|
| — |
|
| 24.4 |
|
| 0.31 |
| ||||||
U.S. tax reform(9) | — |
|
| — |
|
| — |
|
| — |
|
| (8.5 | ) |
| (0.11 | ) | ||||||
As adjusted | $ | 533.7 |
|
| $ | 341.9 |
|
| $ | 4.44 |
|
| $ | 501.0 |
|
| $ | 310.2 |
|
| $ | 3.89 |
|
(1) | Net income and net income per share amounts are after tax. |
(2) | Rounding may impact summation of amounts. |
(3) | During the three months ended December 31, 2019, the Company recorded impairment charges of approximately $176.6 million related primarily to its Europe/Middle East grain and protein business. |
(4) | During the three months ended September 30, 2019, the Company recorded a non-cash adjustment to establish a valuation allowance against its Brazilian net deferred income tax assets. |
(5)
| The restructuring expenses recorded during the year ended December 31, 2019 related primarily to severance and other costs associated with the Company’s rationalization of certain European, South American, U.S., Chinese and African manufacturing operations and various administrative offices, as well as the rationalization of its grain and protein business. The restructuring expenses recorded during the year ended December 31, 2018 related primarily to severance costs associated with the Company’s rationalization of certain U.S., European, South American and Chinese manufacturing operations and various administrative offices. |
(6) | During the three months ended December 31, 2019, the Company recognized a one-time income tax gain associated with the finalization of Swiss federal tax reform. |
(7) | During the year ended December 31, 2018, the Company repurchased approximately $300.0 million of its outstanding 57/8% senior notes. The repurchase resulted in a loss on extinguishment of debt of approximately $24.5 million, including associated fees, offset by approximately $4.7 million of accelerated amortization of the deferred gain related to a terminated interest rate swap instrument associated with the senior notes. |
(8) | During the year ended December 31, 2018 the Company repaid its outstanding term loan under its former revolving credit and term loan facility. The Company recorded approximately $0.7 million associated with the write-off of deferred debt issuance costs and a loss of approximately $3.9 million from a terminated interest rate swap instrument related to the term loan. |
(9) | During the year ended December 31, 2018, the Company finalized its calculations related to the December 2017 enactment of U.S. tax reform legislation and recorded a benefit of approximately $8.5 million. |
The following tables set forth, for the three months and year ended December 31, 2019 and 2018, the impact to net sales of currency translation by geographical segment (in millions, except percentages):
| Three Months Ended December 31, |
| Change due to currency translation | ||||||||||||||
| 2019 |
| 2018 |
| % change |
|
$ |
|
% | ||||||||
North America | $ | 540.5 |
|
| $ | 531.2 |
|
| 1.8 | % |
| $ | 0.6 |
|
| 0.1 | % |
South America | 220.9 |
|
| 276.2 |
|
| (20.0 | )% |
| (14.9 | ) |
| (5.4 | )% | |||
Europe/Middle East | 1,515.3 |
|
| 1,511.7 |
|
| 0.2 | % |
| (41.1 | ) |
| (2.7 | )% | |||
Asia/Pacific/Africa | 236.9 |
|
| 273.1 |
|
| (13.3 | )% |
| (6.8 | ) |
| (2.5 | )% | |||
| $ | 2,513.6 |
|
| $ | 2,592.2 |
|
| (3.0 | )% |
| $ | (62.2 | ) |
| (2.4 | )% |
| Years Ended December 31, |
| Change due to currency translation | ||||||||||||||
| 2019 |
| 2018 |
| % change |
|
$ |
|
% | ||||||||
North America | $ | 2,191.8 |
|
| $ | 2,180.1 |
|
| 0.5 | % |
| $ | (8.5 | ) |
| (0.4 | )% |
South America | 802.2 |
|
| 959.0 |
|
| (16.4 | )% |
| (49.9 | ) |
| (5.2 | )% | |||
Europe/Middle East | 5,328.8 |
|
| 5,385.1 |
|
| (1.0 | )% |
| (295.0 | ) |
| (5.5 | )% | |||
Asia/Pacific/Africa | 718.6 |
|
| 827.8 |
|
| (13.2 | )% |
| (35.8 | ) |
| (4.3 | )% | |||
| $ | 9,041.4 |
|
| $ | 9,352.0 |
|
| (3.3 | )% |
| $ | (389.2 | ) |
| (4.2 | )% |
The following is a reconciliation of net cash provided by operating activities to free cash flow for the years ended December 31, 2019 and 2018 (in millions):
|
| 2019 |
| 2018 | ||||
Net cash provided by operating activities |
| $ | 695.9 |
|
| $ | 595.9 |
|
Less: capital expenditures |
| (273.4 | ) |
| (203.3 | ) | ||
Free cash flow |
| $ | 422.5 |
|
| $ | 392.6 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200206005257/en/
Greg Peterson
Vice President, Investor Relations
770-232-8229
greg.peterson@agcocorp.com
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