AGCO Corp adjusts financials post Grain & Protein unit sale

Published 25/04/2025, 11:08
AGCO Corp adjusts financials post Grain & Protein unit sale

AGCO Corporation (NYSE:AGCO), a global leader in the design, manufacture, and distribution of agricultural machinery and equipment, has announced the completion of its divestiture of the majority of its Grain & Protein (G&P) business to A-AG Holdco Limited, an affiliate of American Industrial Partners, on November 1, 2024. The sale included prominent brands such as GSI®, Automated Production® (AP), Cumberland®, Cimbria®, and Tecno®.

In light of this divestiture, AGCO has recast its segment financial information to reflect the results of the G&P business separately. Previously included within the North America, South America, Europe/Middle East, and Asia/Pacific/Africa segments, the G&P business results have now been moved to "Other" for better comparability of financial data.

The recast segment information reveals that for the year ended December 31, 2024, AGCO’s total segments, excluding the G&P business, generated net sales of $10.845 billion and income from operations of $1.164 billion. The G&P business contributed an additional $816.5 million in net sales and $75.1 million in income from operations, which are now reported under "Other." For comparison, the year ended December 31, 2023, saw total net sales of $13.395 billion and income from operations of $1.944 billion, with the G&P business accounting for $1.018 billion in net sales and $79.2 million in income from operations.

The recasting of financial results is part of AGCO’s commitment to transparency and provides a clearer picture of the company’s performance following the strategic divestiture. The company’s decision to sell the G&P business aligns with its focus on its core segments and its long-term growth strategy.

AGCO’s financial restatements have been filed with the United States Securities and Exchange Commission (SEC) in a Form 8-K report dated April 24, 2025. The filing ensures that investors and stakeholders have access to consistent and comparable financial information for informed decision-making.

Investors and analysts may find the detailed recast segment financials in the company’s SEC filing, which outlines the quarterly and annual performance of AGCO’s remaining business segments and the divested G&P business for fiscal years 2023 and 2024.

In other recent news, AGCO Corporation has declared a regular quarterly dividend of $0.29 per share, set for distribution on June 16, 2025, to shareholders recorded by May 15, 2025. This follows the company’s reported net sales of approximately $11.7 billion in 2024. In shareholder matters, AGCO’s recent Annual Meeting resulted in the election of nine director nominees and the approval of executive compensation and the Employee Stock Purchase Plan. Shareholders also ratified KPMG LLP as the company’s independent auditor for 2025. In corporate developments, AGCO extended its agreement with Tractors and Farm Equipment Limited (TAFE) to June 30, 2025, amid settlement discussions on ongoing disputes. Analyst actions have been mixed, with Morgan Stanley (NYSE:MS) downgrading AGCO’s stock rating to Underweight, citing potential earnings risks and inventory concerns. Conversely, Citi upgraded AGCO’s stock rating to Buy, highlighting the company’s strong market presence in Europe and South America and the anticipated growth in its Precision Technologies division. The outcome of AGCO’s negotiations with TAFE could further influence its business operations and investor sentiment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.