AGCO, Your Agriculture Company (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, reported its results for the second quarter ended June 30, 2023. Net sales for the second quarter were approximately $3.8 billion, an increase of approximately 29.8% compared to the second quarter of 2022. Excluding unfavorable foreign currency translation of approximately 0.8%, net sales in the quarter increased approximately 30.6% compared to the second quarter of 2022. Reported net income was $4.26 per share for the second quarter of 2023, and adjusted net income⁽¹⁾, which excludes restructuring expenses and an update to the estimated cost of participation in a Brazilian income tax amnesty program, was $4.29 per share. These results compare to reported net income of $2.37 per share and adjusted net income⁽¹⁾, which excluded restructuring expenses, of $2.38 per share for the second quarter of 2022.

"Robust demand for our industry-leading products and favorable global industry conditions fueled AGCO’s record second quarter results," stated Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer. "Our farmer-first strategy delivered record net sales and operating margin. These strong results are further evidence that our precision ag technology and premier equipment are in high demand and are driving sustainable productivity improvements for our farmers while providing us with margin-rich growth opportunities."

Hansotia continued, "As demonstrated at our recent technology event, we are advancing innovative farmer-first technologies through both our mixed-fleet retrofit products and also in our new product offerings. We are continuing toward our goal to offer fully autonomous solutions across the crop cycle by 2030 and are increasing investments in premium technology, smart farming solutions and enhanced digital capabilities to support our farmer-first strategy while helping to sustainably feed the world."

Second Quarter Highlights

• Reported regional sales results⁽²⁾: Europe/Middle East ("EME") +35.7%, North America +34.7%, South America +15.3%, Asia/Pacific/Africa ("APA") +8.2%

• Constant currency regional sales results^(1)(2)(3): EME +35.9%, North America +35.1%, South America +16.0%, APA +13.7%

• Regional operating margin performance: EME 14.8%, North America 13.7%, South America 20.3%, APA 8.8%

• Paid a variable special dividend of $5.00 per share and increased quarterly dividend by 21% to $0.29 per share

Net sales for the first six months of 2023 were approximately $7.2 billion, an increase of approximately 27.1% compared to the same period in 2022. Excluding unfavorable currency translation impacts of approximately 3.0%, net sales for the first six months of 2023 increased approximately 30.1% compared to the same period in 2022. For the first six months of 2023, reported net income was $7.36 per share, and adjusted net income⁽¹⁾, which excludes restructuring expenses and an estimated cost of participation in a Brazilian income tax amnesty program, was $7.80 per share. These results compare to reported net income of $4.40 per share, and adjusted net income, excluding restructuring expenses, impairment charges and other related items of $4.77 per share, for the first six months of 2022.