DULUTH, GEORGIA, US — Solid global industry demand helped AGCO increase sales in 2022 by 13.6% to about $12.7 billion.

The company reported net income attributable to the company and its subsidiaries of $889.6 million, down from $897 million in 2021.

Reported net income was $11.87 per share, and adjusted net income, excluding impairment charges, restructuring expenses and other related items, was $12.42 per share. These results compared to reported net income of $11.85 per share and adjusted net income, which excludes restructuring expenses and the reversal of a valuation allowance previously established against the company’s deferred tax assets in the United States and Brazil, of $10.38 per share in 2021.

“Our performance was fueled by robust demand for our industry-leading products coupled with continued solid global industry demand,” said Eric Hansotia, chairman, president and chief executive officer of AGCO. “Our farmer-first focus was highlighted by our fourth-quarter results that not only delivered record net sales and operating margin, but also generated substantial free cash flow. These results are further evidence that our precision ag technology and premier equipment are in high demand and are driving productivity improvements for our farmers while providing us margin-rich growth opportunities.”

For 2023, Hansotia said AGCO expects continued sales growth and margin expansion as industry demand remains strong.

“We assume global market conditions will remain healthy, as favorable farm economics allow farmers to continue to invest in new, more productive equipment and technology upgrades,” he said. “While improving, we expect supply chain pressures will persist, presenting challenges throughout the year. We remain focused on growing our high-margin precision ag business, globalizing the full-line of our Fendt branded products and expanding our parts and service business. We will continue to accelerate investments in premium technology, smart farming solutions and enhanced digital capabilities to support our farmer-first strategy while helping to sustainably feed the world.”

AGCO’s net sales for 2023 are expected to be approximately $14 billion, reflecting improved sales volumes and pricing partially offset by negative foreign currency translation. Gross and operating margins are projected to improve from 2022 levels, reflecting the impact of higher sales and production volumes as well as pricing to offset cost inflation. These improvements are expected to fund increases in engineering and other technology investments to support AGCO’s precision agriculture and digital initiatives. Based on these assumptions, 2023 earnings per share are targeted at approximately $13.50.

For the fourth quarter ended Dec. 31, 2022, AGCO posted net sales of $3.9 billion, an increase of 24% compared with the same quarter in 2021. Reported net income was $4.29 per share for the fourth quarter, and adjusted net income, which excludes restructuring expenses and a charge related to the divestiture of a Russian joint venture, was $4.47 per share. These results compared to reported net income of $3.75 per share and adjusted net income, which excludes restructuring expenses and the reversal of a valuation allowance previously established against the company’s deferred tax assets in Brazil, of $3.08 per share, for the fourth quarter of 2021.