Profile: AGCO Corp (AGCO.K)
26 Dec 2014
AGCO Corporation , incorporated on April 22, 1991, is a manufacturer and distributor of agricultural equipment and related replacement parts throughout the world. The Company sells a range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment, tillage, implements and grain storage and protein production systems. Its products are used in the agricultural equipment industry and are marketed under a number of brands, including Challenger, Fendt, GSI, Massey Ferguson and Valtra. The Company distributes most of its products through a combination of approximately 3,100 independent dealers and distributors in more than 140 countries. In addition, the Company provides retail financing through its retail finance joint ventures with Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank). The Company distributes products primarily through a network of independent dealers and distributors. Its dealers are responsible for retail sales to the equipment’s end user in addition to after-sales service and support of the equipment. The Company operates in four geographical segments: Europe/Africa/Middle East, North America, South America, and Asia/Pacific.
The Company markets and distributes farm equipment and replacement parts to farmers in European markets through a network of approximately 1,110 independent dealers and distributors. In certain markets, it also sells Valtra tractors and parts directly to end users. The Company markets and distributes farm equipment and replacement parts to farmers in North America through a network of approximately 1,300 independent dealers, including 500 independent dealers of grain storage and protein production systems. The Company markets and distributes farm equipment and replacement parts to farmers in South America through several different networks. In Brazil and Argentina, it distributes products directly to approximately 340 independent dealers. Outside of Brazil and Argentina, the Company sells its products in South America through independent distributors. Outside of Europe, North America and South America, the Company operates primarily through a network of approximately 350 independent dealers and distributors, as well as associates and licensees, marketing its products and providing customer service support in approximately 85 countries in Africa, the Middle East, Australia and Asia.
The Company offers a range of tractors in the high horsepower segment (primarily 100 to 585 horsepower). Its high horsepower tractors are used on larger farms and on cattle ranches for hay production. The Company also offers a range of tractors in the utility tractor category (40 to 100 horsepower), including two-wheel and all-wheel drive versions. Its utility tractors are used on small- and medium-sized farms and in specialty agricultural industries, including dairy, livestock, orchards and vineyards. The Company’s compact tractors (under 40 horsepower) are used on small farms and in specialty agricultural industries, such as dairies, landscaping and residential areas. Tractors accounted for approximately 60% of the Company’s net sales in 2013.
The Company’s combines are sold with a range of threshing technologies. All combines are complemented by a range of crop-harvesting heads, available in different sizes. Combines accounted for approximately 6% of the Company’s net sales in 2013.
The Company offers self-propelled, three- and four-wheeled vehicles and related equipment for use in the application of liquid and dry fertilizers and crop protection chemicals. It manufactures chemical sprayer equipment for use both prior to planting crops, known as pre-emergence, and after crops emerge from the ground, known as post-emergence. Application equipment accounted for approximately 5% of the Company’s net sales in 2013.
Hay Tools and Forage Equipment, Implements and Other Equipment
The Company’s hay tools and forage equipment include both round and rectangular balers, self-propelled windrowers, disc mowers, spreaders and mower conditioners and are used for the harvesting and packaging of vegetative feeds used in the beef cattle, dairy, horse and alternative fuel industries. It also distributes a range of implements, planters and other equipment for its product lines. Tractor-pulled implements are used in field preparation and crop management. Implements include disc harrows, which cuts through crop residue, leveling seed beds and mixing chemicals with the soil; heavy tillage, which break up soil and mix crop residue into topsoil, with or without prior discing; and field cultivators, which prepare a smooth seed bed and destroy weeds. Tractor-pulled planters apply fertilizer and place seeds in the field. Other equipment primarily includes loaders, which are used for a range of tasks including lifting and transporting hay crops. Hay tools and forage equipment, implements, engines and other products accounted for approximately 9% of the Company’s net sales in 2013.
Grain Storage and Protein Production Systems
The Company manufactures and distributes grain storage and protein production systems, which include grain storage bins and related drying and handling equipment systems, as well as swine and poultry feed storage and delivery, ventilation and watering systems. Grain storage and protein production systems accounted for approximately 7% of the Company’s net sales in 2013.
The Company’s AGCO Power engines division produces diesel engines, gears and generating sets. The diesel engines are manufactured for use in a portion of its tractors, combines and sprayers, and are also sold to third parties. AGCO Power specializes in the manufacturing of off-road engines in the 50 to 590 horsepower range.
Precision Farming Technologies
The Company offers a range of precision farming technologies. A majority of these technologies are developed by third parties and are installed in Company’s products and include satellite-based steering, field data collection, yield mapping and telemetry-based fleet management systems.
The Company sells replacement parts for all of the products it sells. These parts help keep farm equipment in use, including products no longer in production. Replacement parts accounted for approximately 13% of the Company’s net sales in 2013.
The Company competes with Deere & Company and CNH Industrial N.V.
4205 RIVER GREEN PKWAY
DULUTH GA 30096