Acgo and CNH Industrial flag sales boost in last quarter

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Two of the world’s biggest machinery manufacturers have reported big sales increases in their quarterly results, with Australian demand a contributing factor.

AGCO: Massey Ferguson’s 5S tractor range is one of the newest models from an Agco brand

Both Agco and CNH Industrial have seen increased sales globally, with the Asia-Pacific regions outperforming other parts of the world.

For Agco, there was a 65.9 per cent increase in net sales across the Asia/Pacific/Africa region in the first quarter of 2021 compared to the same time last year, which was when the COVID-19 pandemic began to take effect.

Increased Australian sales were noted in Agco’s financial report as contributing to the regional growth.

Overall, Agco reported a 19.8 per cent net sales increase around the world, factoring in currency value changes, and overall sales of almost US$2.4 billion (A$3.1 billion).

"Favourable market demand and positive market response to our technology-focused products helped produce sales growth and margin expansion across all regions," says Agco chairman, president and chief executive officer Eric Hansotia.

"Our long-term global view remains positive. Increasing demand for commodities, driven by the growing world population, as well as rising emerging market protein consumption and biofuel use, are expected to support elevated farm income and healthy conditions in our industry."

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CNH Industrial’s data was less region-specific, with Australia being included in the ‘rest of world’ figures alongside North America, South America and Europe.

Sales in the ‘rest of world’ region were up 57 per cent for tractors, 30 per cent for combines, 33 per cent for light construction equipment and 47 per cent for heavy construction equipment, all compared to the first quarter of 2020.

All four of these figures were higher than the global increases and ‘rest of world’ had the highest increase of any region in every category except light construction equipment.

The company’s total sales reached US$7 billion (A$9 billion) for the first quarter, an increase of 36 per cent from this time last year with currency changes factored in.

"We overcame unprecedented supply chain challenges, rising commodity costs and the persistent impact of COVID-19 to deliver solid revenue growth and margin expansion, also above Q1 2019 performance," CNH Industrial CEO Scott Wine says.

"All our businesses and brands executed well, and we were particularly encouraged by the strong results agriculture delivered."

Both Agco and CNH Industrial are listed on the New York Stock Exchange.

Agco’s brands include Massey Ferguson, Fendt, Valtra and Challenger, while CNH Industrial’s brands include Case IH, Case Construction, New Holland and Iveco.

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