* 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 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
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.