AGCO has reported global net sales of about US$2.0 billion for the second quarter of 2016, a decrease of about 3.6 percent compared to net sales of about $2.1 billion for the second quarter of 2015.

Reported net income was US$0.61 per share for the second quarter of 2016 and adjusted net income, excluding restructuring expenses and a non-cash deferred income tax adjustment, was US$1.02 per share.

These results compare to reported net income of US$1.22 per share and adjusted net income, excluding restructuring expenses, of US$1.25 per share for the second quarter of 2015.

Excluding unfavourable currency translation impacts of approximately 2.5pc, net sales in the second quarter of 2016 decreased approximately 1.1pc compared to the second quarter of 2015.

During the second quarter of 2016, AGCO recorded a non-cash adjustment to increase the valuation allowance on its US deferred income tax assets of approximately US$31.6 million, or US$0.39 per share.

Net sales for the first six months of 2016 were approximately US$3.6 billion, a decrease of approximately 5.8pc compared to the same period in 2015.

AGCO’s chairman, president and chief executive officer, Martin Richenhagen, said challenging market conditions shaped AGCO’s second quarter as the industry continued to operate at a low point in the agricultural equipment cycle.

“In the midst of a weaker industry environment, we continued to deliver quality products and service to our customers, while aggressively managing our expenses and working capital,” he said.

“Our second quarter results were highlighted by solid margin performance, especially in our EAME and APAC regions, where operating margins improved during the second quarter compared to the same period in 2015.

“We are also managing for the long-term during this weak demand period by increasing the level of investment in product development in order to provide industry leading products and service levels for our customers.

“We have a full slate of new product introductions planned for the second half of 2016, ranging from the most powerful, technology-rich tractor on a conventional frame to highly efficient low and medium horsepower tractors.

“These new products are aimed at improving our competitive position in the global marketplace and increasing our margins in the years ahead.”

Source: AGCO