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AGCO CORPORATION FIRST QUARTER EARNINGS

 ATLANTA, April 30 /PRNewswire/ -- AGCO Corporation (NASDAQ: AGCO) today reported that sales for the first quarter ended March 31, totaled $102,097,000 as compared to $65,472,000 for the same period of the prior year.
 The company reported a net loss for the first quarter of $9,659,000, ($1.08) per share, including a previously announced charge for nonrecurring expenses of $14 million, ($1.57) per share, related to the integration of the Massey Ferguson North American distribution operations. Excluding the nonrecurring charge, net earnings for the quarter were $4,341,000, $.49 per share, compared to earnings of $632,000, $.15 per share, for the same period last year. The company reported a loss from operations, including the nonrecurring charge, of $7,455,000 for the current quarter. Income from operations for the first quarter, excluding the nonrecurring charge, was $6,545,000 as compared to $1,861,000 for the first quarter of the prior year. Earnings for the first quarter were also affected by Canadian exchange rate gains resulting from currency fluctuations. Exchange gains of approximately $573,000, $.06 per share, related to the company's Canadian operations were recognized in the quarter. The company's results for the quarter also included earnings of $697,000, $.08 per share, from its 50 percent investment in Agricredit Acceptance Company. The increase in sales, operating income, and net income, excluding the nonrecurring charge, is primarily a result of the acquisition of the North American distribution business of Massey Ferguson which was completed on Jan. 7.
 As a result of the Massey Ferguson acquisition, AGCO has become the exclusive distributor of Massey Ferguson products in North America. The nonrecurring charge recorded in the first quarter includes costs associated with operating duplicate parts distribution facilities, operating Massey Ferguson's regional administration and sales offices prior to their closing, the cost of certain data processing services provided by Massey Ferguson during the transition period and other acquisition related items.
 The integration of the businesses is scheduled to be completed by the end of the third quarter of 1993. To date, the seven regional parts distribution facilities which were to be eliminated have been closed and those operations consolidated. The consolidation of the two master parts warehouses into one is on schedule and is anticipated to be completed by Sept. 30. The seven regional sales and administrative offices of Massey Ferguson and the Massey corporate headquarters in Des Moines, Iowa have been closed and the costs eliminated.
 Robert Ratliff, president and chief executive officer, indicated that: "The company is pleased with its performance in the first quarter. The benefits from the recent Massey Ferguson acquisition are being realized as expected, and the integration of the businesses is on schedule and we have encountered no unanticipated problems. We remain confident of our original estimates of the transition timetable and the nonrecurring costs. A great deal of effort has been expended during the first quarter in realigning the combined sales forces and cross training sales personnel with respect to Massey Ferguson products and the other AGCO brands -- AGCO Allis, Hesston(R), White, GLEANER(R), and SAME. While this required our sales people to be out of the field for several weeks, the cross training is vital to the successful integration of the businesses. A similar process occurred in 1991 with the acquisitions of Hesston and White.
 AGCO is a major distributor and manufacturer of agricultural equipment and related replacement parts in the United States and Canada, offering a full product line, which includes tractors, combines, hay tools, forage equipment and implements.
 AGCO CORPORATION
 First Quarter Results
 (Unaudited and in thousands)
 Consolidated Statements of Operations
 3 mos. ended
 3/31/93 3/31/92
 Net sales $102,097 $65,472
 Cost of sales 81,538 52,464
 Gross profit 20,559 13,008
 Selling, general and
 administrative expenses 12,252 9,648
 Engineering expenses 1,762 1,499
 Nonrecurring acquisition expenses 14,000 ---
 Income (loss) from operations (7,455) 1,861
 Interest expense (4,822) (2,287)
 Interest income 1,107 408
 Equity in earnings of unconsolidated
 affiliate 697 ---
 Other income (expense), net 814 650
 Total (2,204) (1,229)
 Income (loss) before income taxes (9,659) 632
 Provision for income taxes(a) --- ---
 Net income (loss) $(9,659) $ 632
 Net income (loss) per common
 share(b) $ (1.08) $ 0.15
 Wtd. avg. number of common and
 equivalent shares outst. 8,916 4,192
 (a) There was no tax provision for the three months ended March 31, 1993 or 1992 as a result of the benefit realized resulting from the tax bases of assets acquired in the Deutz-Allis Acquisition being in excess of their bases for financial reporting purposes.
 (b) Earnings per common share, excluding nonrecurring acquisition expenses of $14.0 million, were $0.49 for the three months ended March 31, 1993. Pro forma earnings per common share would have been $0.34 for the three months ended March 31, 1992 if the following had occurred at the beginning of 1992; (i) the Massey Ferguson Acquisition and the financing thereof, (ii) the investment in the Agricredit Joint Venture and the financing thereof, (iii) the initial public offering and (iv) the debt refinancing.
 Condensed Consolidated Balance Sheets
 (in thousands)
 March 31, 1993 Dec. 31, 1992
 ASSETS
 Current assets:
 Cash and marketable securities $ 8,368 $ 9,027
 Accounts and notes receivable, net 287,257 183,951
 Inventories, net 174,286 96,850
 Other current assets 5,180 2,714
 Total current assets 475,091 292,542
 Property, plant and equipment, net 14,170 11,516
 Investments in unconsolidated
 affiliates 31,484 13,000
 Other assets 6,136 3,655
 Total assets $526,881 $320,713
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities $140,511 $ 66,961
 Long-term debt 269,504 121,047
 Noncurrent liabilities 30,428 28,704
 Total liabilities 440,443 216,712
 Excess of assets acquired over
 purchase price, net 2,545 10,329
 Stockholders' equity 83,893 93,672
 Total liabilities and stockholders'
 equity $526,881 $320,713
 -0- 4/30/93
 /CONTACT: Allen W. Ritchie, vice president and chief financial officer of Agco, 404-246-6110/
 (AGCO)


CO: Agco Corporation ST: Georgia IN: SU: ERN

RA-BR -- AT013 -- 3389 04/30/93 16:25 EDT
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Date:Apr 30, 1993
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