1 / 15

AGCO A LWAYS G ROWING

AGCO A LWAYS G ROWING. Prepared by Alex Clegg & John Roberts. E CONOMIC T RENDS. Increasing demand for agricultural products driven by population growth, increasing incomes, and demand for biofuels Arable land available, fixed at best

hoang
Download Presentation

AGCO A LWAYS G ROWING

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. AGCOALWAYS GROWING Prepared by Alex Clegg & John Roberts

  2. ECONOMIC TRENDS • Increasing demand for agricultural products driven by population growth, increasing incomes, and demand for biofuels • Arable land available, fixed at best • Increasing pressure to increase efficiency and productivity to satisfy growing demand

  3. Timeline 1991: Incorporated 1992: IPO, NASDAQ 1994: NYSE listing (AG), acquired Massey Furguson 1999: AGCO finance arm introduced 2002: purchased CAT agricultural equipment business (Challenger) 2004: purchased Valtra Notable Achievements Acquired over 20 companies 3rd largest company 2007 Awards Valtra recognized for excellence in South American tractors Challenger won world discing award Fendt recognized for marketing innovation HISTORY

  4. Brands, Product Line, Market Diversity AGCO, Challenger, Fendt, Massey Ferguson, Valtra, Gleaner, Hesston, RoGator, Spra-Coupe, Sunflower, Terra-Gator, and White Planters Tractors, Combines, Self-propelled sprayers, Hay tools, Forage equipment and Implements, and Diesel Engines Over 3,000 dealers in over 140 countries BUSINESS OVERVIEW

  5. Income Statement: 2007 2006 Total Revenue 6,828.10 5,435.00 Gross Profit 1,191.00 927.80 Operating Income 394.80 68.90 Net Income 246.30 (64.90) Balance Sheet: Total Current Assets 2,721.70 2,309.00 Total Assets 4,787.60 4,114.50 Total Current Liabilities 2,083.30 1,623.60 Total Liabilities 2,774.60 2,620.90 Total Equity 2,043.00 1,493.00 BUSINESS OVERVIEW

  6. INDUSTRY COMPARISON AGCO (Public, NYSE: AG) P/E: 20.96 Total Debt to Equity: 0.33 Gross Margin: 17.67% Operating Margin: 6.09% Net Profit Margin: 3.46% R&D Spending: 3.1% Sales (TTM) growth: 30.09%

  7. INDUSTRY COMPARISON Caterpillar (Public NYSE: CAT) P/E: 14.71 Total Debt to Equity: 3.23 Gross Margin: 24.59% Operating Margin: 10.86% Net Profit Margin: 7.66% R&D Spending: 3.1% Sales (TTM) growth: 10.9%

  8. INDUSTRY COMPARISON John Deere (Public, NYSE: DE) P/E: 19.66 Total Debt to Equity: 0.56 Gross Margin: 28.78% Operating Margin: 11.27% Net Profit Margin: 6.86% R&D Spending: 3.8% Sales (TTM) growth: 11.12%

  9. INDUSTRY COMPARISON Kubota Corporation (Public, NYSE: KUB) P/E: 13.64 Total Debt to Equity: 3.23 Gross Margin: 28.78% Operating Margin: 11.27% Net Profit Margin: 6.86% R&D Spending: 2.03% Sales (TTM) growth: 0.02%

  10. COMPETITIVE EDGE • Acquisitions in the past • New CEO and Board of Directors • R&D: Bring a superior product to market • Strong branding and global platform • Capital Structure

  11. INDUSTRY RISKS • Cyclical nature of agriculture • Dependent on commodity prices • Exchange rates • Interest rates • Union Labor Forces • Litigation • Political Stability

  12. COMPANY RISKS • Not diversified into other industries • Rationalize multiple brands • Continue growth

  13. THE FUTURE WITH AGCO

  14. THE FUTURE WITH AGCO

More Related