DULUTH, GEORGIA, US — Facing challenges associated with a cyberattack, currency headwinds and supply chain constraints, AGCO sustained a drop in net income attributable to the company for the second quarter ended June 30.

Net income attributable to the company for the quarter was $177.7 million, down from $282.8 million in the same quarter a year ago. AGCO is a worldwide manufacturer and distributor of agricultural equipment and solutions.

Net sales for the second quarter were approximately $2.9 billion, an increase of approximately 2.3% compared with the second quarter of 2021. Excluding unfavorable currency translation impacts of approximately 7.5%, net sales in the second quarter of 2022 increased approximately 9.8% compared with the second quarter of 2021.

“AGCO delivered solid results in the second quarter by remaining focused on our farmer-first strategy, while effectively managing the challenges associated with the cyberattack, currency headwinds and ongoing supply chain constraints,” said Eric Hansotia, chairman, president and chief executive officer of AGCO. “Our results reflect substantial price increases to combat rising material costs, higher logistics expenses, and other manufacturing inefficiencies. Farm fundamentals remain favorable and are supporting healthy order boards that remain ahead of last year’s level. Our farmer-first approach and expanding precision ag portfolio are contributing to strong end-market demand and robust growth in our margin-rich businesses.”

The company was fully operational within two weeks of a May cyberattack, but second-quarter production, sales and net income were negatively impacted, AGCO said.

“Our team’s ability to execute and adapt to the challenging environment along with the robust market conditions gives us confidence in delivering our 2022 outlook, which includes record sales, margin expansion and record earnings,” Hansotia said. “These results reinforce our plan to continue investing in our smart farming solutions and enhanced digital capabilities to support further growth and margin expansion.”

He said healthy grain production is forecast for the major agricultural production regions and crop prices are helping farmers offset inflationary pressures.

“While dependent on supply chain performance, we continue to expect strong demand in the second half to support full year 2022 industry retail sales that are expected to be above 2021 levels in North and South America and approximately flat in Western Europe,” Hansotia said.

The ability of the company’s supply chain to deliver parts and components on schedule is currently difficult to predict. The company’s outlook is based on current estimates of component deliveries. AGCO’s results will be affected if the actual supply chain performance differs from the estimates.

Net sales for 2022 are estimated between $12.4 billion and $12.6 billion. Gross and operating margins are projected to improve from 2021 levels, reflecting the impact of higher sales and production volumes as well as favorable pricing to offset material and labor cost inflation.

AGCO estimates full-year adjusted earnings per share of $11.70 to $11.90.