Net sales for the full year of 2009 were approximately $6.6 billion, a decrease of approximately 21.3% compared to the full year of 2008. Excluding the unfavorable impact of currency translation of approximately 4.8%, net sales for the full year of 2009 decreased approximately 16.5% compared to the full year of 2008.
To navigate the challenging year, AGCO executed temporary plant shutdowns in all of the company's factories, reduced the workforce, made significant cuts in production, and lowered company and dealer inventories.
The company reports stabilization in some markets but expects further weakness, particularly in Europe and North America.
In the North American region, sales in the fourth quarter declined approximately 42.0%. Lower sales of utility tractors and hay products tied to the dairy and cattle sectors as well as dealer inventory reductions resulted in the decline.
AGCO's South American region reported a sales increase of approximately 3.6% compared to the fourth quarter of 2008. Demand in Brazil produced most of the increase. The Europe/Africa/Middle East (EAME) region reported a sales decline of approximately 27.0% compared to the fourth quarter of 2008. Demand in the fourth quarter of 2009 continued to soften in France, Germany, Finland and Scandinavia, while the Russian and Eastern European markets remained extremely weak.
Unit production of tractors and combines for the fourth quarter of 2009 was approximately 23.0% below the comparable 2008 level.
The company maintained its investment in new product development, resulting in engineering expense in the full year of 2009 at levels comparable to the prior year.
For further details in AGCO's North American business, industry unit retail sales of tractors were down approximately 18% in the fourth quarter of 2009 compared to the same period in 2008. Tractors under 100 horsepower showed the largest decline due primarily to the weakness in the landscaping, residential construction and dairy sectors. High horsepower tractors were down approximately 12% in the fourth quarter of 2009, compared to stronger levels in 2008. Industry unit retail sales of tractors under 100 horsepower declined approximately 23% in the full year of 2009 compared to the full year of 2008. Industry unit retail sales of combines remained robust and increased approximately 4% in the fourth quarter and 15% for the full year of 2009 compared to the same periods in 2008.
For more: AGCO
AGCO reported net sales of approximately $1.9 billion for the fourth quarter of 2009, a decrease of approximately 14.1% compared to net sales of approximately $2.2 billion for the fourth quarter of 2008.