AGCO, the house of three main tractor manufacturers in Eire, has been busy patting itself on the again almost about its ongoing profitability, in addition to speaking about its long-term plans.
Whole international gross sales within the third quarter of 2022 amounted to $3.1 billion, up 14.3% over the identical quarter final yr, a rise which was led by increased gross sales in South America, though all areas fared effectively.
Wholesome rise in earnings
Right here in Europe, whole gross sales for the primary 9 months of 2022 have been up 10.6%, which is considerably at odds with the reported downturn in unit gross sales over this yr.
The reason from AGCO states:
“The development was pushed by increased gross sales of tractors and substitute components together with beneficial pricing actions. Robust progress in France, Turkey, central Europe and Scandinavia accounted for a lot of the improve.”
South America, nevertheless, noticed a way more vital rise in earnings of 56.1%, resulting from a lot the identical combine of things, however to a far better diploma.
Historic gross sales figures inform us solely the place an organization has been, they offer little clue to the long run and it’s these forecasts and revelations which provide a little bit extra curiosity.
Fendt on the up at AGCO
Many of the information launched over the past month regards Fendt, which has turn into the apple of the company’s eye of late.
Following on from the fanfare of the extension to the Vario 700 collection final month the corporate has revealed large plans for the model going ahead.
These revolve round two main developments. The primary is the constructing of Fendt as a full-line provider of equipment, and the second is the push to extend its market share in North America.
One-stop store for precision agriculture
Fendt already has a variety of forage and harvesting tools in its livery, however that is to be supplemented by tillage equipment, actually within the US the place its vary of Momentum seed drills is already established.
To assist improve its general share, the corporate is to nominate an entire new tranche of Fendt sellers. There are already 70 energetic within the nation and these are to be joined solely by those that are prepared to decide to the Fendt means of doing issues.
In the meantime, Massey Ferguson sellers that don’t measure as much as AGCO’s revised expectations are to really feel the warmth with plans by the father or mother firm to consolidate the dealership community within the US.
It’s not solely the sellers which can be to endure the scythe. Massey Ferguson presently presents 18 completely different ranges, that is to be in the reduction of to simply 10, alongside the dealership cull, though AGCO intends to take care of the overall variety of retailers.
Cheaper with out chips
There’s additionally the suggestion that the Massey Ferguson model will turn into comparatively inexpensive, as the corporate famous at SIMA that they “plan to focus on funds cautious farmers with it”.
SIMA is a global exhibition of applied sciences and options for environment friendly and sustainable agriculture which befell in France earlier in November.
Stepping again from the nitty gritty of all of it, it does look as if AGCO is repositioning its manufacturers to cater for a rising divergence of demand from farmers.
Whereas there may be quite a lot of discuss digital expertise being a panacea for all of farming’s woes, it’s not for everyone, particularly within the US the place nearly all of tractors bought are below 100hp.
AGCO might effectively have taken be aware and is now inserting Fendt because the techno model and Massey Ferguson tractors as being extra fundamental, however able to being dressed up with all the most recent wizardry.
Fairly the place all this leaves the third main department of the household is unclear. Valtra has all the time carried out its personal factor and has come on nice strides over the past 20 years or so, particularly in Eire the place it’s now thought-about a part of the mainstream.
The corporate is effectively established in South America via its Brazilian subsidiary which has a legacy stretching again over 60 years, but the AGCO board nonetheless feels the necessity to double the Fendt dealership community within the area.
Nevertheless, there isn’t any point out of the Nordic department in any of the latest statements from the corporate, the main focus clearly being on creating Fendt which, being full of electronics, may be very prone to be essentially the most worthwhile of the three manufacturers.