Profile: AGCO Corp (AGCO.K)
3 Dec 2013
AGCO Corporation (AGCO), incorporated in April 1991, is a manufacturer and distributor of agricultural equipment and related replacement parts globally. The Company sells a range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment and implements. It also manufactures and distributes grain storage and handling equipment systems, as well as protein production systems. Its products are recognized in the agricultural equipment industry and are marketed under a range of brands, including Challenger, Fendt, Massey Ferguson and Valtra. The Company distributes its products through a combination of approximately 3,100 independent dealers and distributors in more than 140 countries. In addition, it provides retail financing through its retail finance joint ventures with Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank). On November 30, 2011, the Company acquired GSI Holdings Corp. (GSI), a manufacturer of grain storage and protein production systems. On November 30, 2011, the Company acquired 80% of Shandong Dafeng Machinery Co., Ltd. (Dafeng). On March 3, 2011, it acquired the remaining 50% interest of Laverda SpA (Laverda). On January 3, 2011, the Company acquired 50% of AGCO-Amity JV. In September 2013, Grain Systems, Inc. (GSI), a global brand of the Company announced that it has purchased Johnson System Inc. (JSI), manufacturer of catwalks, towers and support structures based in Marshall, Michigan.
The Company offers a range of tractors in the high horsepower segment (primarily 100 to 585 horsepower). Its high horsepower tractors are used on farms and on cattle ranches for hay production. Its compact tractors (under 40 horsepower) are used on small farms and in specialty agricultural industries, such as dairies, landscaping and residential areas. It 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. During the year ended December 31, 2011, tractors accounted for approximately 66% of its net sales.
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. During 2011, Combines accounted for approximately 7% of its net sales.
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. During 2011, application equipment accounted for approximately 4% of its net sales.
Hay Tools and Forage Equipment, Implements and Other Products
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 improve field performance by cutting 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 includes loaders, which are used for a range of tasks, including lifting and transporting hay crops. During 2011, hay tools and forage equipment, implements, engines, grain storage and protein production systems, and other products accounted for approximately 8% of its net sales.
Grain Storage and Protein Production Systems
GSI manufactures and distributes grain storage bins and related drying and handling equipment systems, and swine and poultry feed storage and delivery, ventilation and watering systems. It sells its grain storage and protein production systems primarily under its GSI, DMC, FFI, Zimmerman, AP, Cumberland, Hired Hand and Agromarau brand names.
The Company’s AGCO Sisu 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. The engine division specializes in the manufacturing of off-road engines in the 50 to 500 horsepower range.
Precision Farming Technologies
The Company provides a range of precision farming technologies, which are developed, manufactured, distributed and supported on a global basis. AGCO also offers other technology precision farming products, which gather information, such as yield data.
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. During 2011, replacement parts accounted for approximately 15% of its net sales.
The Company competes with Deere & Company and CNH Global N.V.
4205 River Green Parkway
DULUTH GA 30096