Agco posts higher profit, raises full-year forecast
(Reuters) - Agco Corp (AGCO.N) reported higher quarterly earnings and raised its full-year forecast on Wednesday, citing strong global sales of its tractors and harvesters.
The company reported a second-quarter profit of $213.1 million, or $2.15 a share, up from $202.1 million, or $2.08 a share, a year before.
Agco, which sells its products under the Massey Ferguson, Fendt, Valtra and Agco brand names, said sales rose 13.3 percent to $3 billion.
Analysts, on average, expected the Duluth, Georgia-based company to earn $1.80 a share on sales of $2.83 billion, according to Thomson Reuters I/B/E/S.
Agco said it now expects to earn about $6.00 a share in 2013, up from a previous forecast of $5.50 to $5.70.
The company, which traces its roots back to the Allis-Chalmers Manufacturing Co, whose bright orange tractors were once a fixture of the rural American landscape, said the sales increases came in all regions, including North America, where the company - despite its history - has been struggling to regain market share.
But the biggest gains came in South America, where sales jumped 28 percent during the quarter, lifted by especially strong demand in Brazil.
Agco said sales were up in Europe, too, despite the continued effects of the debt crisis, as strong demand in Germany and France helped offset continued weakness in southern Europe, Britain and Finland.
Agco shares were up about 2.7 percent in early trading on the New York Stock Exchange.
(Reporting by James B. Kelleher; Editing by Gerald E. McCormick and John Wallace)