Agco reports Q1 adjusted EPS 41c, consensus 4c

Reports Q1 revenue $2.1B, consensus $2.05B. “AGCO (AGCO) performed well in the first quarter, which better positions us to navigate global trade uncertainties and continued weak industry demand,” said CEO Eric Hansotia. “We made substantial progress in our cost reduction efforts while reducing inventory by cutting production hours in the quarter by approximately 33% year-over-year. These decisive actions coupled with our focus on driving retail sales allowed us to improve dealer inventory levels in both North and South America. We are seeing a mix of positive signs and risks around the world, requiring us to remain agile as we execute our Farmer-First strategy. The underlying fundamentals in many parts of the world have begun to trend upward with farmer sentiment in Europe improving, U.S. corn prices rising and corn stocks-to-use-ratios at lower levels. However, the global agricultural equipment market is volatile due to tariffs and shifting export demand for grain.”