In the third quarter of 2023, AGCO achieved a 10.7 percent increase in revenue compared to the same period in 2022. The company attributes this growth primarily to increased sales of combine harvesters in North America and Western Europe.
AGCO, the parent company of brands such as Fendt, Massey Ferguson, and Valtra, recently published its financial results for the third quarter of 2023. The company reported a revenue increase to $ 3.5 billion, representing a 10.7 percent rise compared to the third quarter of 2022. The growth is mainly driven by higher sales of combine harvesters in North America (+23%) and Western Europe (+30%).
The overall revenue increase is offset by a decline in tractor sales. AGCO experienced a 2% decrease in tractor sales in North America and Western Europe. In South America, the decrease was more significant at 8%. The combine harvester division also underperformed with a 20% decline. AGCO attributes this decline to factors such as political unrest in certain regions, lower grain and crop prices, and inflation. The conflict in Ukraine is also a contributing factor.
AGCO forecasts a total net revenue for 2023 of $ 14.7 billion, which would be an increase from the $ 11.9 billion revenue reported the previous year. However, it’s worth noting that this final result may still change and will only be confirmed early next year. Despite the positive outlook, AGCO expects that tractor sales revenue for the entire year 2023 will be slightly lower than the previous year.