UPDATE 1-AGCO optimistic on 2013 due in part to Brazil sugarcane
* Sees 2013 EPS $5.50 to $5.75; Street expects $5.56
* Expects 2013 revenue to increase 3 percent to 5 percent
* CEO calls for spending cuts as part of U.S. fiscal deal
* Sales up 3.7 percent in afternoon trading
Dec 11 (Reuters) - Farming equipment maker AGCO Corp expects its 2013 profit to be in a range mostly above Wall Street's forecast, citing growing sales of tractors to harvest sugarcane in South America.
The company, which competes fiercely with rival Deere & Co , expects 2013 earnings per share of $5.50 to $5.75 per share.
Analysts on Wall Street have expected earnings of $5.56 per share for 2013, according to Thomson Reuters I/B/E/S.
AGCO expects sales in South America to increase 5 percent to 10 percent next year, helped mostly by sales of tractors and combines to sugarcane harvesters.
"2013 will be another record year for AGCO," CEO Martin Richenhagen said in an interview. "It will be our fourth record year in a row."
The company's operating margins likely will increase to around 9 percent in 2013, up from 8 percent this year, he said.
The company expects sales to grow 3 percent to 5 percent in 2013 from 2012 levels.
Richenhagen, a German native who became a U.S. citizen in 2011, called for a compromise on the U.S. fiscal cliff negotiations mostly involving spending cuts.
"The most important part of the discussion has to be expenditures," he said. "We need a more simple taxation structure. The one now is very long."
Shares of AGCO rose 3.7 percent to $48.17 after the forecast was announced at the company's annual investor day in New York.
- Carnage at U.N. school as Israel pounds Gaza refugee camp |
- Moscow fights back after sanctions; battle rages near Ukraine crash site
- U.S. economy bounces back in second quarter
- EU and U.S. announce new sanctions on Russia over Ukraine |
- Obama says strains over Ukraine not leading to new Cold War with Russia