2011 agco annual report
TRANSCRIPT
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annualreport
2011
annualreport
2011
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SaleS by product
investing in solutions agco at a glance
02
agcos global presence aGco s g sg, m s g m.
Through our core brands, Challenger, Fendt, Massey Ferguson
and Valtra, as well as the GSI amily o brands, our products include
tractors, harvesting machinery, application machines, implements or
tillage, sowing and planting, grain storage and protein production
equipment. These products are manuactured worldwide and
supported by a network o over 3 ,100 dealers.
Led by innovative technology and underpinned by a huge breadth
o practical eperience and know-how, our agricultural equipment
and support services are providing armers with solutions to
tackle the enormous challenges o escalating global demand or
ood, uel and ber.
Corporate Headquarters
Regional Headquarters
Manuacturing
Light Assembly
Parts Distribution
Joint Venture
Licensee
Sales
Administrative Oce
Tractors 66%
Parts 15%
Combines 7%
Application Equipment 5%
Implements and Other 4%
Hay and orage 3%
North America 20%
South America 21%
EAME 54%
Rest o World 5%
2011 $4.48
2010 $2.32
2009 $1.55
SaleS by GeoGraphic reGion
adjuSted earninGS per Share
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chairmans message
We are optimistic about
the outlook For our
industry and are making
investments to ensure
agco is prepared to
meet the Future demand
For our products.
04
Fw Ss:I am pleased to report that 2011 was a year o eceptional
perormance or AGCO. The Company d elivered record sales
and earnings, introduced signicant innovations across our
product portolio and made key investments that position
the Company or uture growth. Looking into the uture,
the opportunities that eist or the global agricultural
equipment industry and our Company are signicant. The
growing population, increasing demand or ood, improved
diets and rising requirements or energy worldwide will
continue to support healthy long-term undamentals or
the agricultural industry. As armers seek to meet g rowing
ood demands and to oset higher production costs, the
rate o investment in arm equipment is increasing, oering
signicant opportunities. We are working hard to ensure
that AGCO remains well-positioned to take advantage o
these global trends.
F ssAGCOs sales reached $8.8 billion in 2011, growing over
27% compared to 2010. Adjusted earnings per share grew
more than 93% to $4.48. The strength o our end markets
continued to generate very positive results. Recovery in
Western Europe produced sales o nearly $4.7 billion
in our Europe/Arica/Middle East region, and operating
margins rebounded to 10.2%. Sales growth o 19% and
the positive impact o cost reduction initiatives helped our
North American segment improve operating margins by
nearly two percentage points. In South America, positive
arm undamentals produced strong industry demand in
Brazil and generated record AGCO sales o nearly $1.9
billion. Overall, we achieved record earnings while making
signicant investments in research and development and
other productivity initiatives.
dvg w ms wThe innovation, quality and perormance o our products
are instrumental to AGCOs vision o providing high-tech
solutions to proessional armers. In 2011 we continued to
reresh our ull line o equipment with a ocus on the high
horsepower range as well as new products which epand
our current product oering. In Brazil, we are introducing
more technology and localizing complimentary products. A
good eample is the introduction o localized sprayers or
our row crop customers. In Europe and North America, we
introduced a number o high technology tractor products
like the Fendt 700 Vario and the Challenger MT 600 both
equipped with SCR engine technology. These new tractor
models deliver better uel economy or our customers and
cleaner ehaust or a healthier environment.
AGCO has consistently invested in its tractor products and
distribution and is a global leader in tractor sales. We have
a signicant opportunity to leverage our strong brands
with new and improved harvesting products and improved
distribution capabilities. In 2011, we acquired the remaining
50% o the Laverda S.p.A combine harvester business based
in Breganze, Italy. Our new Massey Ferguson and Fendt high
perormance Class 8 combines went into production at the
Breganze actory in 2011, and both have enjoyed market
success in their rst season.
The latter part o 2011 also brought the introduction o
AGCOs rst sel-propelled orage harvester, the Fendt
Katana. Aimed at proessional armers who are already loyal
to the Fendt brand, it is epected that the Katana will open
sales opportunities both in the eed and silage sector and in
harvesting biomass crops.
Numerous industry awards rom around the globe served as
recognition that we are producing leading-edge machinery
to meet armers needs. These awards included Gold and
Silver medals and the Machine o the Year 2012 Award or
Massey Ferguson and Fendt at the Agritechnic a Farm Showin Germany; a gold medal at the Polagra 2012 in Poland or
Fendt; 2012 Finovation awards rom the American Society
o Agricultural and Biological Engineers or our windrowers,
planters, sprayers and combines; and the 2011 Fenabrave
Most Desired Brand award or Massey Ferguson i n
Brazil. Our increased investment in research, design and
engineering will continue to ensure we stay at the oreront
o arm equipment development.
ivsg sssWe are optimistic about the outlook or our industry and are
making investments to ensure AGCO is prepared to meet the
uture demand or our products. Our $220 million multi-year
investment plan at the Marktoberdor plant in Germany,
where we produce Fendt tractors and CVT transmissions,
will be completed in the summer o 2012. Production
capacity will increase and eciency improvements will be
possible thanks to improved technology and production
fow at the acility. We are improving the perormance o
our products and lowering their uel consumption by
utilizing more AGCO produced engines in our equipment.
More than hal o the tractors, combines, and sprayers we
manuactured in 2011 were equipped with AGCO engines,
twice the penetration rate compared to 2004.
exg aGcos In November, we completed the acquisition o GSI, a leading
global manuacturer o grain storage and protein production
systems. GSI is a strong, protable, well-managed company
with great brands, global reach and technology leadership. It
manuactures complete grain storage and handling solutions
or both armers and large-scale grain processors. GSIs protein
production product line supports both swine and poultry growers,
including eeders, nesting, and climate control systems. With
global protein consumption on the rise due to changing diets in
emerging markets, demand or both grain storage and swine and
poultry production is set to increase substantially. As emerging
markets adopt more sophisticated levels o technology, the
requirement or GSI products should continue to grow.
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chairmans message
investing in solutions
06
M rgcm, ps c exv o
emgg mksRussia and the CIS continue to have signicant growth
prospects. There is an i mmense amount o armland
in Russia, Ukraine and Kazakhstan being armed with
inecient machinery. The investment in arm equipment
dropped to very low levels over the last 15 years and
crop yields in this region have suered. We are epanding
our distribution in the CIS region and establishing local
manuacturing capabilities to take advantage o the
growth opportunities in these markets.
China is one o the worlds largest markets or small and
mid-size low specication agricultural tractors. Economic
progress in the region is driving more mechanization
to arms. Over the net ew years, we plan to invest in
production acilities in China. These will serve both domestic
and eport markets with ully assembled tractors as well
as drivelines and engines or assembly in other locations.
Strategic investment throughout Arica will place AGCOs key
brands at the heart o a continent on the cusp o the net
green revolution. The strengthening o dealer networks and
training acilities throughout the continent will enable AGCO
to urther establish our products throughout the region.
a Sg Ss okFarmers have been producing ood or thousands o years.
With rising populations epected over the net our decades,
they ace their biggest challenge yet. The United Nations
studies suggest that by 2050 global ood production will
have to increase by 70%. To boost global ood supply,
production eciency is being improved thanks to more
accurate use o ertilizers, new seed technology and
advancing mechanization. Farm equipment will be one o
the key actors in increasing arm productivity in the years to
come. AGCO has a powerul global platorm to capitalize on
a strengthening demand or agricultural equipment.
The achievement o long-term economic, social and
environmental sustainability goes hand-in-hand with
our mission to provide high-tech solutions or proessional
armers eeding the world. We aim to promote ecellence
in our employees through engagement, training anddevelopment. We strive to promote good citizenship
and strong ethics, while keeping our employees
needs paramount.
Our customers remain central to what we do, with their
protability the key driving orce behind the demand or our
products. We would like to thank them or their continued brand
loyalty and wish them every success or 2012. I would also like
to etend my personal thanks to our employees and dealers or
their ongoing dedication and or the critically important role they
continue to play in accomplishing AGCOs outstanding results.
Lastly, I thank my ellow shareholders or your continued
condence and support. 2012 is epected to be another year
o strong perormance and we will build on the successul
oundations put in place over the past several years. With healthyarm economics, record results and strategic investments to
strengthen our long-term growth, it is truly an eciting time to
be part o AGCO.
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in a challenging worldagcos role
08
population growth
increasing water consumption
CHANGING DIETS IN ASIA
ncreasing demand for biofueland alternative energies
increased demand to provide traceability
greater need for precision in agricultural production
ORE FOOD FROM LESS LAND
Populaton growth s set to be one o the
defnng ssues o the 21st century. From
todays 7 bllon, the global total s orecast
to soar to more than 9 bllon people by 2050.
Over the next 40 years, agrcultural producton
and yelds wll need to ncrease substantally.
Food securty s at the top o government
agendas around the world.
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10
WWW.agcocorp.com
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investing in solutions
agco is a global leaderin enhancing the
efficiency of farmers
around the world.
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investing in
sustainability
12
Our approach to long-term economic, social and
environmental sustainability is aligned with our vision
to provide high-tech solutions or proessional armers
eeding the world. AGCO aims to promote sustainable
and proftable growth through superior customer
service, innovation, quality and commitment.
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providing
solutions
to our
customers
14
Farmers have a crucial job, and AGCO is supplying
the tools to help them do it. This includes all o the
support they require to keep operating no matterwhat conditions they ace.
From small amily arms to large-scale agribusinesses
harvesting many thousands o acres, we deliver on
our promise as Your Agriculture Company.
The AGCO ull-service eperience:
Innovative technology
Reliable, high-output, high-productivity machines
World-class parts supply
Highly responsive technical service support
Financial solutions through AGCO Finance
Knowledgeable, practical advice
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16
Challenger n 2011
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Smart Machnery, Serous Results
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Efcent Technology
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A World o Experence Workng wth You
Massey Ferguson n 2011
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22
Valtra n 2011
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24
In 2011, AGCO completed the purchase o GSI, a leading manuacturero grain storage equipment and protein control systems.
gsi
Posting annual revenue o over $700 million in 2011,
GSI sells its products globally through more than 500
independent dealers. GSI etends AGCOs reach in the
agricultural industry and places the company in a strong
position in new market sectors. At the same time, AGCOsglobal presence, along with manuacturing and purchasing
capabilities, will provide additional opportunities to GSI or
growth and operational eciencies.
GSI is a market leader in the provision o grain bins,
material handling and conditioning machinery. Within
protein production, GSI provides a range o eed and
watering systems, climate control equipment and
connement nesting, putting the company at the oreront
in the supply o complete customer solutions.
The grain storage and protein production markets are
poised or signicant growth. Much o this increase will
come rom developing markets, as diets adapt and the
adoption o production technology increases.
GSI has a strong customer prole, supporting
multinational corporations, large businesses and individual
armers, oering AGCO signicant opportunities or
long-term growth in epanding sectors.
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26
AnnualReport2011
investing in
global harvesting
harvesting is the result oF months
oF hard Work, care and attention to
transForm tiny seeds into sustainable
and proFitable livelihoods.
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28
harvesting
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investing in research,
design andengineering
p
30
The development o technology to meet the demands o ood,
eed, uel and ber production is at the core o our research.
Our engineers and developers are continuing to push back
the boundaries o possibility with award-winning designs
and technological innovations in areas such as cleaner engine
emissions, improved uel eciency, controlled in-eld trac
guidance, data management and remote communications.
Since 2004, AGCO applications or engineering patents have
risen sevenold.
In 2011, we invested $276 million globally in engineering
and new product development. This included the launch o
the pioneering Tier 4 Interim/Stage B engine, complying with
both US and EU regulations.
AGCO embraces multiple modes o university cooperation
- rom graduate design projects to internships and
engineering scholarships.
AGCOs armer-ocused innovations
and practical application o technologyare helping growers to be moreproductive, ecient and protable.
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AnnualReport2011
32
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investing in technology
Fendt Ecient Technology is a ocused philosophy to achieve MOREusing LESS resources and inputs. This is achieved using a number oinnovations rom Fendt to ensure that customers have a decisive edgein protability and cost-eectiveness, while protecting the environmentalong the way.
The spread o modern arming techniques and investment intechnological innovation is key to unlocking the ull potential o
the worlds land assets. AGCOs e3 strategy Energy, Economyand Ecology undamentally underlies the development o theCompanys agricultural solutions.
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AnnualReport2011
investing in
manuFacturing
34
We are aggressively implementing the AGCO Production
System (APS) initiative, across all our operations to drive
higher perormance levels in eciency and quality. This
has led to productivity increases at manuacturing sites in
addition to reductions in cycle times and lower inventory
levels, creating a manuacturing operation that is fexible and
responsive to changing market demands.
In a urther boost to quality, in 2011 we commenced the
design and implementation o AGCO Quality System (AQS).
AQS is designed specically to improve the delivered quality
to our customers.
With record levels o investment at manuacturing acilities
worldwide, AGCO has been able to improve production fow
and leverage global benets.
We are investing in core manuacturing process including
welding, abrication, paint, and test and inspection.
The installation o advanced robot welding cells is now
standardized across all operations.
We continue to rene the ootprint at every manuacturing
site to optimize the fow o materials and drive increased
eciencies. In addition, we are developing Manuacturing
Centers o Ecellence in select locations to leverage leading
technologies across multiple sites.
AGCO is building production acilities in China and epandingmanuacturing operations in the United States and Western Europe.Increasing production capabilities in these strategic geographicregions strongly positions AGCO to deliver relevant solutions tomeet our customers needs in the uture.
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Annual Report 2011
investing in
our people
and their
development
36
The international team o men and
women who work or AGCO worldwideare the driving orce o the Companyssuccess. By investing in employees anddeveloping their skills and knowledge,AGCO is reinorcing its growth plans.
AGCOs Global Human Resource unction acts
as a strategic partner enabling business success
through human capital solutions. Its mission is
to oster a dynamic global environment, which
attracts and inspires ecellence in AGCOs
people through engagement, training and
development, and opportunities or long-term
career advancement.
Workorce and Succession Planning are
key activities. These address critical stang
requirements aligned with strategic business
planning to ensure the Company has the right
people in the right place at the right time.
Talent acquisition and talent development are
two critical pillars o our Human Resources
strategy. To meet the needs o our growing
global business, in 2011, we implemented
a Global Talent Acquisition Process (GTAP)
across all regions. Talent acquisition and talent
development are two critical pillars o our
Human Resources strategy.
AGCO capitalizes on the unique skills and
multi-lingual abilities o individuals across
the regions and draws on their dierent
perspectives to add value to the business
through shared knowledge and best practices.
The provision o continuous, personal learning
and development is a core priority in AGCOs
employee ocus. This sustains a motivated and
high-perorming workorce, helping individuals
achieve their ull potential. Employees receiveproessional development through AGCO
University a global learning organization
growing a learning culture.
great products and great services
do not happen Without great people.
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38
lz F F*Member o the
Board o BRF Brasil
Foods, S.A.
a M. c
Senior Vice President
and General Manager,
South America
r G. hm
Senior Vice President
Global Sales, Marketing
and Product Management
tm W. lS*Co-Chairman and CEO
Fisker Automotive, Inc.
r b. c
Senior Vice President
and General Manager,
North America
G l. S*
Former Group President
Caterpil lar Inc.
dv l. c
Senior Vice President
Materials Projects
M h. rg*Chairman, President and
Chie Eecutive Oicer, AGCO
l b. Sm
Senior Vice President
Human Resources
aw h. bk
Senior Vice President
Chie Financial Oicer
huberus M. Mueleuser
Senior Vice President and General
Manager, Europe, Arica & Middle East
FFiCERS &RECTORS:
om letright
p. Gg bs*President, College o Charleston
Wgg dm*
Former President and
CEO BayWa Corporation
Mk Svs*
Chairman and CEO o Tractors
and Farm Equipment Limited
d c. us*
President and CEO o
Navistar International
hks Vss*Chairman, Royal Huisman
Shipyards N.V.
d e. K
Vice President, General Counsel
and Corporate Secretary
G b. js*
Former President and CEO
Haworth, Inc.
hs-b Vm
Senior Vice President
Chie Supply Chain Oicer
G l. b Senior Vice President
Engineering Projects
Gg e. M*
Former Senior Vice President
and CFO, ITT Corporation
G l. c
Senior Vice President and General
Manager, Asia Paciic
* d
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IN MILLIONS, ExCEPT PERCENTAGES, PER SHARE AMOUNTS AND EMPLOYEES
Years Ended December 31 2011 2010 2009 2008 2007
Operating Data:
Net sales $ 8,773.2 $ 6,896.6 $ 6,516.4 $ 8,273.1 $ 6,715.9
Gross prot 1,776.1 1,258.7 1,071.9 1,498.4 1,189.7
Percent o net sales 20.2% 18.3% 16.4% 18.1% 17.7%
Income rom operations 610.3 324.2 218.7 563.7 393.7
Percent o net sales 7.0% 4.7% 3.4% 6.8% 5.9%
Net income 585.3 220.2 135.4 385.9 232.9
N et ( in co me ) l os s a tt ri bu ta bl e t o n on co nt ro ll in g i nt er es ts ( 2.0) 0 .3 0 .3
Net income attributable to AGCO Corporation and subsidiaries $ 583.3 $ 220.5 $ 135.7 $ 385.9 $ 232.9
Net income per common share diluted (1) $ 5.95 $ 2.29 $ 1.44 $ 3.95 $ 2.41
Wei gh te d a ve ra ge s har es o uts ta nd in g d il ut ed 98 .1 96 .4 94 .1 97 .7 9 6. 6
Balance Sheet Data:
Cash and cash equivalents $ 724.4 $ 719.9 $ 651.4 $ 506.1 $ 574.8
Working capital 1,457.3 1,208.1 1,079.6 1,037.4 724.8
Total assets 7,257.2 5,436.9 4,998.9 4,846.6 4,698.0
To ta l l on g- te rm d eb t, e c lu di ng cur re nt p or ti on 1 ,4 09 .7 4 43 .0 4 54 .0 6 25 .0 2 94 .1
Stockholders equity 3,031.2 2,659.2 2,394.4 2,014.3 2,114.1
Other Data:
Number o employees 17,366 14,311 14,456 15,606 13,720
(1) The Company makes reerence to adjusted earnings per share, as reconciled below:
2011 2010 2009 2008 2007
Net income per common share diluted $ 5.95 $ 2.29 $ 1.44 $ 3.95 $ 2.41
Restructuring and other inrequent epenses (income)(2) 0.03 0.11 (0.03)
GSI acquisition(2)(3) (1.47)
Net income per common share - adjusted $ 4.48 $ 2.32 $ 1.55 $ 3.95 $ 2.38
(2) Ater ta.
(3) During 2011, the Company recorded a ta benet o $149.3 million and acquisition epenses o $5.8 million associated with the GSI acquisition as is more ully described in the
Companys audited Consolidated Financial Statements and Notes to its Consolidated Financial Statements which are included in the Companys annual report on Form 10-K.
is annual report includes orward-looking statements, including
e statements in the Ch airmans Message and other statements
rein regarding market demand, armer productivity and crop
lds, production levels, strategic initiatives and their eects, and
neral economic conditions. These statements are subject to
k that could cause actual results to dier materially rom those
ggested by the statements, including:
ur nancial results depend entirely upon the agricultural industry,
d actors that adversely aect the agricultural industry generally,
cluding declines in the general economy, increases in arm inputsts, lower commodity prices and changes in the availability o
edit or our retail customers, will adversely aect us.
e poor perormance o the general economy had adversely
pacted our sales and may continue to have an adverse impact on
r sales in the uture, the extent o which we are unable to predict,
d there can be no assurance that our results will not continue to
aected by the weakness in global economic conditions.
ur success depends on the introduction o new products, which
quire substantial ependitures and may not be well received in
e market place.
e ace signicant competition and, i we are unable to complete
ccessully against other agricultural equipment manuacturers,
e would lose customers and our revenues and protability
ould decline.
ost o our sales depend on the retail customers obtaining
ancing, and any disruption in their ability to obtain nancing,
hether due to the current economic downturn or otherwise, will
sult in the sale o ewer products by us. A large portion o the
tail sales o our products are nanced by our retail nance joint
ntures with Rabobank, and any diculty on Rabobanks part to
nd the venture would adversely impact sales i our customers
ould be required to utilize other retail nancing providers.
e collectability o receivables that are created rom our sales,
well as rom nancing obtained by our customers through our
tail nancing joint ventures, is critical to our business.
We depend on suppliers or raw materials, components and
parts or our products, and any ailure by our suppliers to provide
products as needed, or by us to promptly address supplier
issues, will adversely impact our ability to timely and eciently
manuacture and sell products.
A majority o our sales and manuacturing take place outside
o the United States, and, as a result, we are eposed to risks
related to oreign laws, taes, economic conditions, labor supply
and relations, political conditions and governmental policies.
These risks may delay or reduce our realization o vale rom ourinternational operations.
Volatility with respect to currency echange rates and interest
rates can adversely aect our reported results o operations and
the competitiveness o our products.
We are subject to etensive environmental laws and regulations,
and our compliance with, or our ailure to comply with, eisting
or uture laws and regulations could delay production o our
products or otherwise adversely aect our business.
We have signicant pension obligations with respect to our
employees, and our available cash fow may be adversely aected
in the event that payments became due under any pension plans
that are ununded or underunded. Declines in the market value
o the securities used to und these obligations result in increased
pension epense in uture periods.
We are subject to raw material price fuctuations, which can
adversely aect our manuacturing costs.
In connection with our outstanding indebtedness, we are subject
to certain restrictive covenants and payment obligations that may
adversely aect our ability to operate and epand our business.
We disclaim any obligation to update orward-looking statements
ecept as required by law
selected Financial inFormationorWard-looking statementsAnnualReport2011
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dm 31 2011 2010
aSSetS
Current Assets:
Cash and cash equivalents $ 724.4 $ 719.9
Accounts and notes receivable, net 994.2 908.5
Inventories, net 1,559.6 1,233.5
Deerred ta assets 142.7 52.6
Other current assets 241.9 206.5
Total current assets 3,662.8 3,121.0
Property, plant and equipment, net 1,222.6 924.8
Investment in aliates 346.3 398.0
Deerred ta assets 37.6 58.0
Other assets 126.9 130.8
Intangible assets, net 666.5 171.6
Goodwill 1,194.5 632.7
Total assets $ 7,257.2 $ 5,436.9
liabilitieS and StocKholderS eQuity
Current Liabilities:
Current portion o long-term debt $ 60.1 $ 0.1
Convertible senior subordinated notes 161.0
Securitization acilities 113.9
Accounts payable 937.0 682.6
Accrued epenses 1,080.6 883.1
Other current liabilities 127.8 72.2
Total current liabilities 2,205.5 1,912.9
Long-term debt, less current portion 1,409.7 443.0
Pensions and postretirement health care benets 298.6 226.5
Deerred ta liabilities 192.3 103.9
Other noncurrent liabilities 119.9 91.4
Total liabilities 4,226.0 2,777.7
Sks eq:
AGCO Corporation stockholders equity:
Preerred stock; $0.01 par value, 1,000,000 shares authorized, no shares issued oroutstanding in 2011 and 2010
Common stock; $0.01 par value, 150,000,000 shares authorized, 97,194,732 and93,143,542 shares issued and outstanding at December 31, 2011 and 2010,respectively
1.0 0.9
Additional paid-in capital 1,073.2 1,051.3
Retained earnings 2,321.6 1,738.3
Accumulated other comprehensive loss (400.6) (132.1)
Total AGCO Corporation stockholders equity 2,995.2 2,658.4
Noncontrolling interests 36.0 0.8
Total stockholders equity 3,031.2 2,659.2
Total liabilities and stockholders equity $ 7,257.2 $ 5,436.9
IN MILLIONS, ExCEPT SHARE AMOUNTS
The Consolidated Balance Sheets should be read in conjunc tion with the Companys Managements Discussion and Analysis o Financial Condition and Results o Operations and theCompanys audited Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements, which are included in the Companys Annual Reporton Form 10-K.
MILLIONS, ExCEPT PER SHARE DATA
s e dm 31 2011 2010 2009
t sales $ 8,773.2 $ 6,896.6 $ 6,516.4
st o goods sold 6,997.1 5,637.9 5,444.5
Gross prot 1,776.1 1,258.7 1,071.9
ling, general and administrative epenses 869.3 692.1 630.1
gineering epenses 275.6 219.6 191.9
structuring and other inrequent (income) epenses (0.7) 4.4 13.2
mortization o intangibles 21.6 18.4 18.0
Income rom operations 610.3 324.2 218.7
erest epense, net 30.2 33.3 42.1
her epense, net 19.1 16.0 22.2
come beore income taes and equity in net earnings o aliates 561.0 274.9 154.4
come ta provision 24.6 104.4 57.7
come beore equity in net earnings o aliates 536.4 170.5 96.7
uity in net earnings o aliates 48.9 49.7 38.7
et income 585.3 220.2 135.4
et (income) loss attributable to noncontrolling interests (2.0) 0.3 0.3
et income attributable to AGCO Corporation and subsidiaries $ 583.3 $ $220.5 $ 135.7
et income per c ommon share attributable to AGCO Corporation and subsidiaries:
Basic $ 6.10 $ 2.38 $ 1.47
Diluted $ 5.95 $ 2.29 $ 1.44
eighted average number o common and common equivalent shares outstanding:
Basic 95.6 92.8 92.2
Diluted 98.1 96.4 94.1
Consolidated Statements o Operations should be read in conjunction with the Companys Managements Discussion and Analysis o Financial Condition and Results oerations and the Companys audited Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements, which are included in the Companysnual Report on Form 10-K.
consolidated balance sheetsconsolidated statements oF operations
42
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cmm Sk am o cmsv lss
Shares AmountAdditional
Paid-in CapitalRetainedEarnings
Dened BenetPension Plans
CumulativeTranslationAdjustment
DeerredLosses onDerivatives
Accumulated OtherComprehensive
LossNoncontrolling
Interests
TotalStockholders
Equity
ComprehensiveIncome
Attributableto AGCO
Corporationand subsidiaries
Comprehensive (Loss)Income
Attributable to Non-controllingInterests
lance, December 31, 2008 91,844,193 $ 0.9 $ 1,067.4 $ 1,382.1 $ (138.1) $ (257.9) (40.1) $ (436.1) $ $ 2,014.3
Net income (loss) 135.7 (0.3) 135.4 $ 135.7 $ (0.3)Issuance o restricted stock 26,388 0.6 0.6
Issuance o perormance award stock 581,393 (5.2) (5.2)
Stock options and SSARs eercised 1,691
Stock compensation 7.4 7.4Investments by noncontrolling interest 1.3 1.3Dened benet pension plans, net o taes:
Net actuarial loss arising during year (75.6) (75.6) (75.6) (75.6)Amortization o net actuarial losses included in net periodic pension cost 5.4 5.4 5.4 5.4Deerred gains and losses on derivatives, net 35.4 35.4 35.4 35.4Deerred gains and losses on derivatives held by aliates, net
0.6 0.6 0.6 0.6Reclassication to temporary equity-
Equity component o convertible senior subordinated notes (8.3) (8.3)Change in cumulative translation adjustment 282.9 282.9 0.2 283.1 282.9 0.2
lance, December 31, 2009 92,453,665 0.9 1 ,061.9 1,517.8 (208.3) 25.0 (4.1) (187.4) 1.2 2,394.4 384.4 (0.1)
Net income (loss) 220.5 (0.3) 220.2 220.5 (0.3)Issuance o restricted stock 17,303 0.7 0.7
Issuance o perormance award stock 555,262 (11.2) (11.2)
Stock options and SSARs eercised 56,326
Stock compensation 12.7 12.7Conversion o 13/4% convertible senior subordinated notes 60,986
Repurchase o 13/4% convertible senior subordinated notes (21.1) (21.1)Dened benet pension plans, net o taes:
Prior service cost arising during year (2.8) (2.8) (2.8) (2.8)Net actuarial gain arising during year 23.5 23.5 23.5 23.5Amortization o prior service cost included in net periodic pension cost 1.8 1.8 1.8 1.8Amortization o net actuarial losses included in net periodic pension cost 6.7 6.7 6.7 6.7Deerred gains and losses on derivatives, net 2.5 2.5 2.5 2.5Deerred gains and losses on derivatives held by aliates, net 0.2 0.2 0.2 0.2Reclassication to temporary equity-
Equity component o convertible senior subordinated notes 8.3 8.3Change in cumulative translation adjustment 23.4 23.4 (0.1) 23.3 23.4 (0.1)
lance, December 31, 2010 93,143,542 0.9 1 ,051.3 1,738.3 (179.1) 48.4 (1.4) (132.1) 0.8 2,659.2 275.8 (0.4)
Net income 583.3 2.0 585.3 583.3 2.0Issuance o restricted stock 12,034 0.7 0.7
Issuance o perormance award stock 51,590 (1.5) (1.5)
Stock options and SSARs eercised 60,992 (0.7) (0.7)Stock compensation 23.7 23.7Conversion o 13/4% convertible senior subordinated notes 3,926,574 0.1 (0.1)
Investments by noncontrolling interests 34.6 34.6Distribution to noncontrolling interest (1.5) (1.5)Change in air value o noncontrolling interest (0.2) 0.2Dened benet pension plans, net o taes:
Prior service cost arising during year (5.0) (5.0) (5.0) (5.0)Net actuarial loss arising during year (61.8) (61.8) (61.8) (61.8)Amortization o prior service cost included in net periodic pension cost 0.1 0.1 0.1 0.1Amortization o net actuarial losses included in net periodic pension cost 5.6 5.6 5.6 5.6Deerred gains and losses on derivatives, net (5.4) (5.4) (5.4) (5.4)Deerred gains and losses on derivatives held by aliates, net 2.5 2.5 2.5 2.5Change in cumulative translation adjustment (204.5) (204.5) (0.1) (204.6) (204.5) (0.1)
lance, December 31, 2011 97,194,732 $ 1.0 $ 1,073.2 $ 2,321.6 $ (240.2) $ (156.1) $ (4.3) $ (400.6) $ 36.0 $ 3,031.2 $ 314.8 $ 1.9
MILLIONS, ExCEPT SHARE AMOUNTS
The Consolidated Statements o Stockholders Equity should be read in conjunction with the Companys Managements Discussion and Analysis o Financial Condition and Results oOperations and the Companys audited Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements, which are included in the Companys AnnualReport on Form 10-K.
consolidated statements oF stockholders equity
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MILLIONS
s e dm 31 2011 2010 2009
sh fows rom operating activities:
Net income $ 585.3 $ 220.2 $ 135.4
Adjustments to reconcile net income to net c ash provided by operating activities:
Depreciation 151.9 135.9 118.8
Deerred debt issuance cost amortization 2.9 2.9 2.8
Amortization o intangibles 21.6 18.4 18.0
Amortization o debt discount 8.2 15.3 15.0
Stock compensation 24.4 13.4 8.0
Equity in net earnings o aliates, net o cash received (19.0) (14.8) (21.0)
Deerred income ta (benet) provision (127.6) 2.9 (21.9)
Other (1.3) 0.1 1.4
Changes in operating assets and liabilities, net o eects rom purchase o businesses:
Accounts and notes receivable, net (0.1) (21.2) 241.2
Inventories, net (221.0) (60.6) 277.1
Other current and noncurrent assets (11.0) (92.8) 40.8
Accounts payable 162.3 70.6 (380.3)
Accrued epenses 183.5 114.9 (68.1)
Other current and noncurrent liabilities (34.2) 33.5 (19.3)
Total adjustments 140.6 218.5 212.5
Net cash provided by operating activities 725.9 438.7 347.9
sh fows rom investing activities:
Purchases o property, plant and equipment (300.4) (167.1) (206.6)
Proceeds rom sale o property, plant and equipment 1.5 0.9 2.1
(Purchase) sale o businesses, net o cash acquired (1,018.0) (81.5) 0.5
Investments in consolidated aliates, net o cash acquired (34.8)
Investments in unconsolidated aliates, net (8.3) (25.4) (17.6)
Restricted cash and other (3.7) 37.1
Net cash used in investing activities (1,363.7) (273.1) (184.5)
sh fows rom nancing activities:
R ep urc ha se o r c on ver si on o c on ve rti bl e se ni or s ub or di nat ed n ote s (1 61. 0) ( 60 .8)
Proceeds rom debt obligations 1,676.9 71.4 282.3
Repayments o debt obligations (826.4) (109.2) (343.2)
Proceeds rom issuance o common stock 0.3 0.5
Payment o minimum ta withholdings on stock compensation (2.5) (11.3) (5.2)
Payment o debt issuance costs (14.8) (0.1)
(Distribution to) investments by noncontrolling interest (1.5) 1.3
Net cash provided by (used in) nancing activities 671.0 (109.4) (64.9)
ects o echange rate changes on cash and cash equivalents (28.7) 12.3 46.8
rease in cash and cash equivalents 4.5 68.5 145.3
sh and cash equivalents, beginning o year 719.9 651.4 506.1
sh and cash equivalents, end o year $ 724.4 $ 719.9 $ 651.4
e Consolidated Statements o Cash Flows should be read in conjunction with the Companys Managements Discussion and Analysis o Financial Condition and Results o Operationsd the Companys audited Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements, which are included in the Companys Annual Report onm 10-K.
2012 AGCO CorporationAll rights reserved. Incorporated in Delaware. An Equal Opportunity Employer.AGCO, Fendt, Massey Ferguson, Valtra and their respective logos as well as corporate and product indentity used herein are trademarks o AGCO or its subsidiaries andmay not be used without permission. Challenger is a registered trademark o Caterpillar, Inc. and may not be used without permission.
US$
250
200
150
100
50
02006 2007 2008 2009 2010 2011
AGCO Corporation
Customer Peer Group
S&P Midcap 400 Index
PERFORMANCE GRAPHThe graph shown (above) is a line graph presentation o the Companys cumulative stockholder returns on an indexed basis as compared to the S&PMid-Cap 400 Index and a sel-constructed peer group o the companies listed in ootnote 1 to the perormance graph (Peer Group). Returns orthe Company in the graph are not necessarily indicative o uture perormance
Assumes $100 invested on January 1, 2007. Assumes dividend reinvested. Fiscal year ending Decembe 31, 2011.(1) Based on inormation or a sel-constructed peer group o companies which includes the ollowing: Caterpillar Inc., CNH Global NV, Cummins Inc., Parker-Hannin Corporation
and Terex Corporation.
corporate headquarters4205 River Green ParkwayDuluth, Georgia 30096 US770-813-9200
transFer agent & registrarComputershare Trust Company, N.A.250 Royall StreetCanton, MA 02021 US
stock exchangeAGCO Corporation common stock (trading symbol is AGCO) is traded onthe New York Stock Exchange.
independent registered public accounting FirmKPMG LLPAtlanta, Georgia US
Form 10-kThe Form 10-K annual report to the Securities and Exchange Commissionis available in the Investors Section o our corporate web site (www.agcocorp.com), under the heading SEC Filings, or upon request romthe Investor Relations Department at corporate headquarters.
annual meetingThe annual meeting o the Companys stockholders will be held at 9:00a.m. ET. on April 26, 2012 at the oces o AGCO Corporation,4205 River Green Parkway, Duluth, Georgia 30096 US
consolidated statements oF cash FloWs
46
comparison oF cumulative total return
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Farmers have been
producing Food For
thousands oF years. With
rising populations expected
over the next Four decades,
they Face their biggestchallenge yet.
2011