DULUTH, Ga.--(BUSINESS WIRE)--Feb. 7, 2017--
AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and
distributor of agricultural equipment, reported net sales of
approximately $2.1 billion for the fourth quarter of 2016, an increase
of approximately 6.9% compared to net sales of approximately $2.0
billion for the fourth quarter of 2015. Reported net income was $0.77
per share and adjusted net income, which excludes restructuring
expenses, was $0.84 per share for the fourth quarter of 2016. These
results compare to reported net income of $0.73 per share and adjusted
net income, which excludes restructuring expenses, of $0.80 per share
for the fourth quarter of 2015. Excluding unfavorable currency
translation impacts of approximately 1.8%, net sales in the fourth
quarter of 2016 increased approximately 8.7% compared to the fourth
quarter of 2015.
Net sales for the full year of 2016 were approximately $7.4 billion, a
decrease of approximately 0.8% compared to 2015. Excluding the
unfavorable impact of currency translation of approximately 2.6%, net
sales for the full year of 2016 increased approximately 1.9% compared to
2015. For the full year of 2016, reported net income was $1.96 per share
and adjusted net income, which excludes restructuring expenses and a
non-cash deferred income tax adjustment, was $2.47 per share. These
results compare to reported net income of $3.06 per share and adjusted
net income, which excludes restructuring expenses, of $3.24 per share
for the full year of 2015.
Highlights
-
Reported fourth quarter regional sales results(1):
Europe/Africa/Middle East (“EAME”) (2.0)%, North America +3.0%, South
America +63.6%, Asia/Pacific (“APAC”) +21.8%
-
Constant currency fourth quarter regional sales results(1)(2):
EAME +1.8%, North America +4.4%, South America +53.9%, APAC +22.7%
-
Generated $370 million in cash flow from operations and $168 million
in free cash flow in 2016
-
Share repurchase program resulted in reduction of 4.4 million shares
during 2016
-
New $300 million share repurchase program authorized through December
2019
-
Quarterly dividend increased to $0.14 per share effective first
quarter 2017
-
Full-year earnings per share forecast for 2017 remains at
approximately $2.50
(1) As compared to fourth quarter 2015
(2) Excludes currency translation impact.
See reconciliation of Non-GAAP measures in appendix.
“The past year was a challenging year due to continued weakening global
market demand for agricultural equipment,” stated Martin Richenhagen,
AGCO’s Chairman, President and Chief Executive Officer. “Despite these
difficult conditions, our solid operational execution during 2016
allowed us to exceed our financial targets and be well-positioned to
seek new opportunities for growth. Looking forward to 2017, industry
conditions are expected to remain near the bottom of the agricultural
equipment cycle in key markets. In response to the industry challenges,
our focus continues to be on cost and expense reduction through
globalizing processes, reducing complexity and better leveraging scale.
In addition to diligent cost management, we will continue to make
long-term investments to raise the efficiency of our factories, improve
our service levels and strengthen our product offering.”
Market Update
|
Industry Unit Retail Sales
|
Year ended December 31, 2016
|
|
|
|
Tractors Change from Prior
Year Period
|
|
|
Combines Change from Prior
Year Period
|
|
|
|
|
|
|
|
|
North America(1) |
|
|
|
(10
|
)%
|
|
|
(21
|
)%
|
South America
|
|
|
|
(6
|
)%
|
|
|
14
|
%
|
Western Europe
|
|
|
|
(4
|
)%
|
|
|
(14
|
)%
|
|
|
|
|
|
|
|
|
(1)Excludes compact tractors.
|
“The record grain harvest in the U.S., combined with healthy crop
production across Europe and Brazil, resulted in increased grain
inventories and lower soft commodity prices,” continued Mr. Richenhagen.
“Difficult farm economics negatively impacted farmer sentiment, and we
experienced softer industry equipment demand in all major markets. In
North America, industry sales declined throughout the year. Sales
declines were most pronounced in the row crop and professional hay
producer sectors, with significantly lower industry retail sales of
high-horsepower tractors, combines and grain storage and handling
equipment. Industry retail demand declines from 2015 levels were less
significant in Western Europe. Low milk prices for dairy producers
lessened demand, while sales in the arable farming sector also remained
weak due to lower commodity prices. A smaller wheat harvest hurt retail
demand in France, especially in the second half of the year. Market
declines also occurred in Germany, offset by modest growth in
Scandinavia and Finland. Industry demand in South America stabilized
throughout the year with fourth quarter 2016 industry unit retail
tractor sales up 35% from very depressed conditions in the fourth
quarter of 2015. While the market was down for the full year in Brazil,
the improving political landscape contributed to industry growth in the
second half of the year. Supportive government policies and improved
crop production in Argentina resulted in higher sales in that market.
Despite the global market difficulties we are facing today, our
long-term view remains positive as increasing global demand for
commodities driven by the growing world population, rising emerging
market protein consumption and biofuel use, are expected to support
elevated farm income and healthy conditions in our industry.”
Regional Results
|
AGCO Regional Net Sales (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
% change from 2015
|
|
|
% change from 2015 due to currency translation(1)
|
North America
|
|
|
|
$
|
447.4
|
|
|
$
|
434.5
|
|
|
3.0
|
%
|
|
|
(1.4
|
)%
|
South America
|
|
|
|
|
308.1
|
|
|
|
188.3
|
|
|
63.6
|
%
|
|
|
9.7
|
%
|
EAME
|
|
|
|
|
1,187.1
|
|
|
|
1,211.9
|
|
|
(2.0
|
)%
|
|
|
(3.9
|
)%
|
APAC
|
|
|
|
|
151.4
|
|
|
|
124.3
|
|
|
21.8
|
%
|
|
|
(0.9
|
)%
|
Total
|
|
|
|
$
|
2,094.0
|
|
|
$
|
1,959.0
|
|
|
6.9
|
%
|
|
|
(1.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
% change from 2015
|
|
|
% change from 2015 due to currency translation(1)
|
North America
|
|
|
|
$
|
1,807.7
|
|
|
$
|
1,965.0
|
|
|
(8.0
|
)%
|
|
|
(1.3
|
)%
|
South America
|
|
|
|
|
917.5
|
|
|
|
949.0
|
|
|
(3.3
|
)%
|
|
|
(7.6
|
)%
|
EAME
|
|
|
|
|
4,206.0
|
|
|
|
4,151.3
|
|
|
1.3
|
%
|
|
|
(2.2
|
)%
|
APAC
|
|
|
|
|
479.3
|
|
|
|
402.0
|
|
|
19.2
|
%
|
|
|
(2.0
|
)%
|
Total
|
|
|
|
$
|
7,410.5
|
|
|
$
|
7,467.3
|
|
|
(0.8
|
)%
|
|
|
(2.6
|
)%
|
(1) See Footnotes for
additional disclosures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
Net sales in the North American region decreased 6.7% in the full year
of 2016 compared to 2015, excluding the negative impact of currency
translation. Weaker industry demand and dealer inventory reduction
efforts contributed to lower sales. Sales declines in grain storage
equipment, hay tools and sprayers were partially offset by sales growth
in medium and small tractors. Lower sales and production volumes, a
weaker sales mix and other cost increases contributed to a reduction in
income from operations of approximately $84.3 million for the full year
of 2016 compared to 2015.
South America
Excluding unfavorable currency translation impacts, AGCO’s South
American net sales increased 4.3% in the full year of 2016 compared to
2015. Higher sales in Argentina, were partially offset by slightly lower
sales in Brazil due to weak, but improving, industry conditions. Income
from operations decreased approximately $14.5 million for the full year
of 2016 compared to 2015 due the negative impact of currency translation
and material cost inflation.
Europe/Africa/Middle East
EAME net sales increased 3.5% in the full year of 2016 compared to 2015,
excluding unfavorable currency translation impacts. The increase
resulted from the benefit of acquisitions along with growth in the
United Kingdom and Scandinavia and was offset by declines in Africa,
Germany and France. Income from operations increased approximately $1.0
million for the full year of 2016 compared to 2015 due to higher sales
partially offset by unfavorable currency translation impacts.
Asia/Pacific
AGCO’s APAC net sales, excluding the negative impact of currency
translation, increased 21.2% in the full year of 2016 compared to 2015.
Income from operations increased approximately $39.0 million in the full
year of 2016 compared to 2015 due to higher sales across the region and
increased small tractor production in China.
Outlook
Softer industry demand is anticipated across North America and Europe,
partially offset by growth in South America. AGCO’s net sales for 2017
are expected to reach approximately $7.4 billion. Gross and operating
margins are expected to improve from 2016 levels, reflecting the
positive impact of pricing and cost reduction efforts partially offset
by a weaker sales mix. Based on these assumptions, 2017 earnings per
share is targeted to be approximately $2.50.
* * * * *
AGCO will be hosting a conference call with respect to this earnings
announcement at 10:00 a.m. Eastern Time on Tuesday, February 7, 2017.
The Company will refer to slides on its conference call. The conference
call and slide presentation can be accessed on AGCO’s website at www.agcocorp.com
in the “Events” section on the “Company/Investors” page of our website.
A replay of the conference call will be available approximately two
hours after the conclusion of the conference call for twelve months
following the call. A copy of this press release will be available on
AGCO’s website for at least twelve months following the call.
* * * * *
Safe Harbor Statement
Statements that are not historical facts, including the projections of
earnings per share, sales, industry demand, market conditions, world
population, biofuel use and protein consumption, currency translation,
farm income levels, margin levels, industry inventory levels,
investments in product and technology development, cost reduction
initiatives, production volumes, and general economic conditions, are
forward-looking and subject to risks that could cause actual results to
differ materially from those suggested by the statements. The following
are among the factors that could cause actual results to differ
materially from the results discussed in or implied by the
forward-looking statements.
-
Our financial results depend entirely upon the agricultural industry,
and factors that adversely affect the agricultural industry generally,
including declines in the general economy, increases in farm input
costs, lower commodity prices, lower farm income and changes in the
availability of credit for our retail customers, will adversely affect
us.
-
A majority of our sales and manufacturing take place outside the
United States, and, many of our sales involve products that are
manufactured in one country and sold in a different country, and as a
result, we are exposed to risks related to foreign laws, taxes and
tariffs, trade restrictions, economic conditions, labor supply and
relations, political conditions and governmental policies. These risks
may delay or reduce our realization of value from our international
operations.
-
Most retail sales of the products that we manufacture are financed,
either by our joint ventures with Rabobank or by a bank or other
private lender. Our joint ventures with Rabobank, which are controlled
by Rabobank and are dependent upon Rabobank for financing as well,
finance approximately 40% of the retail sales of our tractors and
combines in the markets where the joint ventures operate. Any
difficulty by Rabobank to continue to provide that financing, or any
business decision by Rabobank as the controlling member not to fund
the business or particular aspects of it (for example, a particular
country or region), would require the joint ventures to find other
sources of financing (which may be difficult to obtain), or us to find
another source of retail financing for our customers, or our customers
would be required to utilize other retail financing providers. As a
result of the recent economic downturn, financing for capital
equipment purchases generally has become more difficult in certain
regions and in some cases, can be expensive to obtain. To the extent
that financing is not available or available only at unattractive
prices, our sales would be negatively impacted.
-
Both AGCO and our finance joint ventures have substantial account
receivables from dealers and end customers, and we would be adversely
impacted if the collectability of these receivables was not consistent
with historical experience; this collectability is dependent upon the
financial strength of the farm industry, which in turn is dependent
upon the general economy and commodity prices, as well as several of
the other factors listed in this section.
-
We have experienced substantial and sustained volatility with respect
to currency exchange rate and interest rate changes, including
uncertainty associated with the Euro, which can adversely affect our
reported results of operations and the competitiveness of our products.
-
Our success depends on the introduction of new products, particularly
engines that comply with emission requirements, which requires
substantial expenditures.
-
Our production levels and capacity constraints at our facilities,
including those resulting from plant expansions and systems upgrades
at our manufacturing facilities, could adversely affect our results.
-
Our expansion plans in emerging markets, including establishing a
greater manufacturing and marketing presence and growing our use of
component suppliers, could entail significant risks.
-
We depend on suppliers for components, parts and raw materials for our
products, and any failure by our suppliers to provide products as
needed, or by us to promptly address supplier issues, will adversely
impact our ability to timely and efficiently manufacture and sell
products. We also are subject to raw material price fluctuations,
which can adversely affect our manufacturing costs.
-
We face significant competition, and if we are unable to compete
successfully against other agricultural equipment manufacturers, we
would lose customers and our net sales and profitability would decline.
-
We have a substantial amount of indebtedness, and, as a result, we are
subject to certain restrictive covenants and payment obligations that
may adversely affect our ability to operate and expand our business.
Further information concerning these and other factors is included in
AGCO’s filings with the Securities and Exchange Commission, including
its Form 10-K for the year ended December 31, 2015 and subsequent Form
10-Qs. AGCO disclaims any obligation to update any forward-looking
statements except as required by law.
* * * * *
About AGCO
AGCO (NYSE: AGCO) is a global leader in the design, manufacture and
distribution of agricultural solutions and supports more productive
farming through its full line of equipment and related services. AGCO
products are sold through five core brands, Challenger®, Fendt®, GSI®,
Massey Ferguson® and Valtra®, supported by Fuse® precision technologies
and farm optimization services, and are distributed globally through a
combination of approximately 3,050 independent dealers and distributors
in more than 150 countries. Founded in 1990, AGCO is headquartered
in Duluth, GA, USA. In 2016, AGCO had net sales of $7.4 billion. For
more information, visit http://www.AGCOcorp.com. For
company news, information and events, please follow us on Twitter:
@AGCOCorp. For financial news on Twitter, please follow the hashtag
#AGCOIR.
Please visit our website at www.agcocorp.com
|
AGCO CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(unaudited and in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
ASSETS
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
429.7
|
|
|
|
$
|
426.7
|
|
Accounts and notes receivable, net
|
|
|
|
|
890.4
|
|
|
|
|
836.8
|
|
Inventories, net
|
|
|
|
|
1,514.8
|
|
|
|
|
1,423.4
|
|
Other current assets
|
|
|
|
|
330.8
|
|
|
|
|
211.4
|
|
Total current assets
|
|
|
|
|
3,165.7
|
|
|
|
|
2,898.3
|
|
Property, plant and equipment, net
|
|
|
|
|
1,361.3
|
|
|
|
|
1,347.1
|
|
Investment in affiliates
|
|
|
|
|
414.9
|
|
|
|
|
392.9
|
|
Deferred tax assets
|
|
|
|
|
99.7
|
|
|
|
|
100.7
|
|
Other assets
|
|
|
|
|
143.1
|
|
|
|
|
136.5
|
|
Intangible assets, net
|
|
|
|
|
607.3
|
|
|
|
|
507.7
|
|
Goodwill
|
|
|
|
|
1,376.4
|
|
|
|
|
1,114.5
|
|
Total assets
|
|
|
|
$
|
7,168.4
|
|
|
|
$
|
6,497.7
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
|
$
|
85.4
|
|
|
|
$
|
89.0
|
|
Senior term loan
|
|
|
|
|
—
|
|
|
|
|
217.2
|
|
Accounts payable
|
|
|
|
|
722.6
|
|
|
|
|
625.6
|
|
Accrued expenses
|
|
|
|
|
1,160.8
|
|
|
|
|
1,106.9
|
|
Other current liabilities
|
|
|
|
|
176.1
|
|
|
|
|
146.7
|
|
Total current liabilities
|
|
|
|
|
2,144.9
|
|
|
|
|
2,185.4
|
|
Long-term debt, less current portion
|
|
|
|
|
1,610.0
|
|
|
|
|
925.2
|
|
Pensions and postretirement health care benefits
|
|
|
|
|
270.0
|
|
|
|
|
233.9
|
|
Deferred tax liabilities
|
|
|
|
|
112.4
|
|
|
|
|
86.4
|
|
Other noncurrent liabilities
|
|
|
|
|
193.9
|
|
|
|
|
183.5
|
|
Total liabilities
|
|
|
|
|
4,331.2
|
|
|
|
|
3,614.4
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity:
|
|
|
|
|
|
|
|
AGCO Corporation stockholders’ equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
0.8
|
|
|
|
|
0.8
|
|
Additional paid-in capital
|
|
|
|
|
103.3
|
|
|
|
|
301.7
|
|
Retained earnings
|
|
|
|
|
4,113.6
|
|
|
|
|
3,996.0
|
|
Accumulated other comprehensive loss
|
|
|
|
|
(1,441.6
|
)
|
|
|
|
(1,460.2
|
)
|
Total AGCO Corporation stockholders’ equity
|
|
|
|
|
2,776.1
|
|
|
|
|
2,838.3
|
|
Noncontrolling interests
|
|
|
|
|
61.1
|
|
|
|
|
45.0
|
|
Total stockholders’ equity
|
|
|
|
|
2,837.2
|
|
|
|
|
2,883.3
|
|
Total liabilities and stockholders’ equity
|
|
|
|
$
|
7,168.4
|
|
|
|
$
|
6,497.7
|
|
|
|
|
|
|
|
|
|
See accompanying notes to condensed consolidated financial
statements.
|
|
|
AGCO CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited and in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
2016
|
|
|
2015
|
Net sales
|
|
|
|
$
|
2,094.0
|
|
|
$
|
1,959.0
|
Cost of goods sold
|
|
|
|
|
1,673.7
|
|
|
|
1,561.6
|
Gross profit
|
|
|
|
|
420.3
|
|
|
|
397.4
|
Selling, general and administrative expenses
|
|
|
|
|
224.8
|
|
|
|
222.2
|
Engineering expenses
|
|
|
|
|
81.8
|
|
|
|
71.7
|
Restructuring expenses
|
|
|
|
|
6.4
|
|
|
|
7.7
|
Amortization of intangibles
|
|
|
|
|
15.9
|
|
|
|
10.5
|
Income from operations
|
|
|
|
|
91.4
|
|
|
|
85.3
|
Interest expense, net
|
|
|
|
|
17.6
|
|
|
|
13.3
|
Other expense, net
|
|
|
|
|
4.3
|
|
|
|
19.1
|
Income before income taxes and equity in net earnings of affiliates
|
|
|
|
|
69.5
|
|
|
|
52.9
|
Income tax provision
|
|
|
|
|
18.3
|
|
|
|
6.4
|
Income before equity in net earnings of affiliates
|
|
|
|
|
51.2
|
|
|
|
46.5
|
Equity in net earnings of affiliates
|
|
|
|
|
10.0
|
|
|
|
14.8
|
Net income
|
|
|
|
|
61.2
|
|
|
|
61.3
|
Net loss attributable to noncontrolling interests
|
|
|
|
|
0.8
|
|
|
|
0.8
|
Net income attributable to AGCO Corporation and subsidiaries
|
|
|
|
$
|
62.0
|
|
|
$
|
62.1
|
Net income per common share attributable to AGCO Corporation and
subsidiaries:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.78
|
|
|
$
|
0.73
|
Diluted
|
|
|
|
$
|
0.77
|
|
|
$
|
0.73
|
Cash dividends declared and paid per common share
|
|
|
|
$
|
0.13
|
|
|
$
|
0.12
|
Weighted average number of common and common equivalent shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
79.9
|
|
|
|
84.8
|
Diluted
|
|
|
|
|
80.8
|
|
|
|
84.9
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to condensed consolidated financial
statements.
|
|
|
AGCO CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited and in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
Net sales
|
|
|
|
$
|
7,410.5
|
|
|
|
$
|
7,467.3
|
Cost of goods sold
|
|
|
|
|
5,895.0
|
|
|
|
|
5,906.7
|
Gross profit
|
|
|
|
|
1,515.5
|
|
|
|
|
1,560.6
|
Selling, general and administrative expenses
|
|
|
|
|
867.9
|
|
|
|
|
852.3
|
Engineering expenses
|
|
|
|
|
296.1
|
|
|
|
|
282.2
|
Restructuring expenses
|
|
|
|
|
11.9
|
|
|
|
|
22.3
|
Amortization of intangibles
|
|
|
|
|
51.2
|
|
|
|
|
42.7
|
Income from operations
|
|
|
|
|
288.4
|
|
|
|
|
361.1
|
Interest expense, net
|
|
|
|
|
52.1
|
|
|
|
|
45.4
|
Other expense, net
|
|
|
|
|
31.4
|
|
|
|
|
36.3
|
Income before income taxes and equity in net earnings of affiliates
|
|
|
|
|
204.9
|
|
|
|
|
279.4
|
Income tax provision
|
|
|
|
|
92.2
|
|
|
|
|
72.5
|
Income before equity in net earnings of affiliates
|
|
|
|
|
112.7
|
|
|
|
|
206.9
|
Equity in net earnings of affiliates
|
|
|
|
|
47.5
|
|
|
|
|
57.1
|
Net income
|
|
|
|
|
160.2
|
|
|
|
|
264.0
|
Net (income) loss attributable to noncontrolling interests
|
|
|
|
|
(0.1
|
)
|
|
|
|
2.4
|
Net income attributable to AGCO Corporation and subsidiaries
|
|
|
|
$
|
160.1
|
|
|
|
$
|
266.4
|
Net income per common share attributable to AGCO Corporation and
subsidiaries:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
1.97
|
|
|
|
$
|
3.06
|
Diluted
|
|
|
|
$
|
1.96
|
|
|
|
$
|
3.06
|
Cash dividends declared and paid per common share
|
|
|
|
$
|
0.52
|
|
|
|
$
|
0.48
|
Weighted average number of common and common equivalent shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
81.4
|
|
|
|
|
87.0
|
Diluted
|
|
|
|
|
81.7
|
|
|
|
|
87.1
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to condensed consolidated financial
statements.
|
|
|
AGCO CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited and in millions)
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
160.2
|
|
|
|
$
|
264.0
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
223.4
|
|
|
|
|
217.4
|
|
Deferred debt issuance cost amortization
|
|
|
|
|
1.0
|
|
|
|
|
2.0
|
|
Amortization of intangibles
|
|
|
|
|
51.2
|
|
|
|
|
42.7
|
|
Stock compensation expense
|
|
|
|
|
18.1
|
|
|
|
|
12.2
|
|
Proceeds from termination of hedging instrument
|
|
|
|
|
7.3
|
|
|
|
|
—
|
|
Equity in net earnings of affiliates, net of cash received
|
|
|
|
|
(1.4
|
)
|
|
|
|
(19.0
|
)
|
Deferred income tax provision (benefit)
|
|
|
|
|
2.1
|
|
|
|
|
(26.8
|
)
|
Other
|
|
|
|
|
1.3
|
|
|
|
|
(0.1
|
)
|
Changes in operating assets and liabilities, net of effects from
purchase of businesses:
|
|
|
|
|
|
|
|
Accounts and notes receivable, net
|
|
|
|
|
(4.5
|
)
|
|
|
|
3.8
|
|
Inventories, net
|
|
|
|
|
(33.1
|
)
|
|
|
|
117.6
|
|
Other current and noncurrent assets
|
|
|
|
|
(98.7
|
)
|
|
|
|
(49.3
|
)
|
Accounts payable
|
|
|
|
|
62.8
|
|
|
|
|
37.3
|
|
Accrued expenses
|
|
|
|
|
47.0
|
|
|
|
|
(34.8
|
)
|
Other current and noncurrent liabilities
|
|
|
|
|
(67.2
|
)
|
|
|
|
(42.8
|
)
|
Total adjustments
|
|
|
|
|
209.3
|
|
|
|
|
260.2
|
|
Net cash provided by operating activities
|
|
|
|
|
369.5
|
|
|
|
|
524.2
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
|
(201.0
|
)
|
|
|
|
(211.4
|
)
|
Proceeds from sale of property, plant and equipment
|
|
|
|
|
2.4
|
|
|
|
|
1.5
|
|
Purchase of businesses, net of cash acquired
|
|
|
|
|
(383.8
|
)
|
|
|
|
(25.4
|
)
|
Investment in consolidated affiliates, net of cash acquired
|
|
|
|
|
(11.8
|
)
|
|
|
|
—
|
|
Investments in unconsolidated affiliates
|
|
|
|
|
(4.5
|
)
|
|
|
|
(3.8
|
)
|
Restricted cash and other
|
|
|
|
|
0.4
|
|
|
|
|
(1.7
|
)
|
Net cash used in investing activities
|
|
|
|
|
(598.3
|
)
|
|
|
|
(240.8
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Proceeds from debt obligations, net
|
|
|
|
|
495.5
|
|
|
|
|
182.4
|
|
Purchases and retirement of common stock
|
|
|
|
|
(212.5
|
)
|
|
|
|
(287.5
|
)
|
Payment of dividends to stockholders
|
|
|
|
|
(42.5
|
)
|
|
|
|
(42.0
|
)
|
Payment of minimum tax withholdings on stock compensation
|
|
|
|
|
(2.0
|
)
|
|
|
|
(6.3
|
)
|
Payment of debt issuance costs
|
|
|
|
|
(2.5
|
)
|
|
|
|
(0.7
|
)
|
Excess tax benefit related to stock compensation
|
|
|
|
|
—
|
|
|
|
|
0.7
|
|
Investments by noncontrolling interests
|
|
|
|
|
0.4
|
|
|
|
|
—
|
|
Net cash provided by (used in) financing activities
|
|
|
|
|
236.4
|
|
|
|
|
(153.4
|
)
|
Effects of exchange rate changes on cash and cash equivalents
|
|
|
|
|
(4.6
|
)
|
|
|
|
(67.0
|
)
|
Increase in cash and cash equivalents
|
|
|
|
|
3.0
|
|
|
|
|
63.0
|
|
Cash and cash equivalents, beginning of year
|
|
|
|
|
426.7
|
|
|
|
|
363.7
|
|
Cash and cash equivalents, end of year
|
|
|
|
$
|
429.7
|
|
|
|
$
|
426.7
|
|
|
|
|
|
|
|
|
|
See accompanying notes to condensed consolidated financial
statements.
|
|
|
|
|
|
|
|
|
|
AGCO CORPORATION AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(unaudited, in millions, except share amounts, per share data and
employees)
|
|
1. STOCK COMPENSATION (CREDIT) EXPENSE
The Company recorded stock compensation (credit) expense as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Years Ended December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Cost of goods sold
|
|
|
|
$
|
(0.1
|
)
|
|
|
$
|
0.1
|
|
|
$
|
1.5
|
|
|
$
|
0.9
|
Selling, general and administrative expenses
|
|
|
|
|
(1.1
|
)
|
|
|
|
1.5
|
|
|
|
16.9
|
|
|
|
11.6
|
Total stock compensation (credit) expense
|
|
|
|
$
|
(1.2
|
)
|
|
|
$
|
1.6
|
|
|
$
|
18.4
|
|
|
$
|
12.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. RESTRUCTURING EXPENSES
During 2014 and 2015, the Company announced and initiated several
actions to rationalize employee headcount at various manufacturing
facilities located in Europe, China, South America and the United
States in order to reduce costs in response to softening global market
demand and lower production volumes. The aggregate headcount reduction
was approximately 2,100 employees. During 2014 and 2015, the Company
expensed and paid an aggregate of $68.7 million and $48.5 million,
respectively, associated with these rationalizations, of which a
majority related to severance and related costs. The Company had
approximately $16.9 million of severance and related costs accrued as of
December 31, 2015. During year ended December 31, 2016, the Company
recorded an additional $11.9 million of severance and related costs
associated with further rationalizations in Europe, China, South America
and the United States, associated with the termination of approximately
650 employees, and paid approximately $13.3 million of severance and
related costs. The remaining $15.3 million balance of severance and
related costs accrued as of December 31, 2016, inclusive of
approximately $0.2 million of negative foreign currency translation
impacts, will be paid primarily during 2017.
3. INDEBTEDNESS
Indebtedness at December 31, 2016 and 2015 consisted of the
following:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
1.056% Senior term loan due 2020
|
|
|
|
$
|
211.0
|
|
|
|
$
|
217.2
|
|
Credit facility, expiring 2020
|
|
|
|
|
329.2
|
|
|
|
|
338.9
|
|
Senior term loan due 2021
|
|
|
|
|
316.5
|
|
|
|
|
—
|
|
5 7/8% Senior notes due 2021
|
|
|
|
|
306.6
|
|
|
|
|
297.4
|
|
Senior term loans
|
|
|
|
|
395.6
|
|
|
|
|
—
|
|
4½% Senior term loan due 2016
|
|
|
|
|
—
|
|
|
|
|
217.2
|
|
Other long-term debt
|
|
|
|
|
141.6
|
|
|
|
|
164.3
|
|
Debt issuance costs
|
|
|
|
|
(5.1
|
)
|
|
|
|
(3.6
|
)
|
|
|
|
|
|
1,695.4
|
|
|
|
|
1,231.4
|
|
Less: Current portion of other long-term debt
|
|
|
|
|
(85.4
|
)
|
|
|
|
(89.0
|
)
|
4½% Senior term loan due 2016
|
|
|
|
|
—
|
|
|
|
|
(217.2
|
)
|
Total indebtedness, less current portion
|
|
|
|
$
|
1,610.0
|
|
|
|
$
|
925.2
|
|
|
|
|
|
|
|
|
|
4. INVENTORIES
Inventories at December 31, 2016 and 2015 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
Finished goods
|
|
|
|
$
|
589.3
|
|
|
$
|
523.1
|
Repair and replacement parts
|
|
|
|
|
532.5
|
|
|
|
515.4
|
Work in process
|
|
|
|
|
113.8
|
|
|
|
97.5
|
Raw materials
|
|
|
|
|
279.2
|
|
|
|
287.4
|
Inventories, net
|
|
|
|
$
|
1,514.8
|
|
|
$
|
1,423.4
|
|
|
|
|
|
|
|
|
5. ACCOUNTS RECEIVABLE SALES AGREEMENTS
At December 31, 2016 and 2015, the Company had accounts receivable sales
agreements that permit the sale, on an ongoing basis, of a majority of
its wholesale receivables in North America, Europe and Brazil to its
U.S., Canadian, European and Brazilian finance joint ventures. During
2015, the Company entered into an accounts receivable sales agreement
that permits the sale, on an ongoing basis, of its wholesale receivables
in Brazil to its Brazilian finance joint venture. As of both
December 31, 2016 and 2015, the cash received from receivables sold
under the U.S., Canadian, European and Brazilian accounts receivable
sales agreements was approximately $1.1 billion.
Losses on sales of receivables associated with the accounts receivable
financing facilities discussed above, reflected within “Other expense,
net” in the Company’s Condensed Consolidated Statements of Operations,
were approximately $5.7 million and $19.5 million during the three
months and year ended December 31, 2016, respectively. Losses on sales
of receivables associated with the accounts receivable financing
facilities discussed above, reflected within “Other expense, net” in the
Company’s Condensed Consolidated Statements of Operations, were
approximately $5.4 million and $18.8 million during the three months and
year ended December 31, 2015, respectively.
The Company’s finance joint ventures in Europe, Brazil and Australia
also provide wholesale financing to the Company’s dealers. As of
December 31, 2016 and 2015, these finance joint ventures had
approximately $41.5 million and $38.3 million, respectively, of
outstanding accounts receivable associated with these arrangements. In
addition, the Company sells certain trade receivables under factoring
arrangements to other financial institutions around the world.
6. NET INCOME PER SHARE
A reconciliation of net income attributable to AGCO Corporation and
subsidiaries and weighted average common shares outstanding for purposes
of calculating basic and diluted net income per share for the three
months and years ended December 31, 2016 and 2015 is as follows:
|
|
|
|
Three Months Ended December 31,
|
|
|
Years Ended December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Basic net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to AGCO Corporation and subsidiaries
|
|
|
|
$
|
62.0
|
|
|
$
|
62.1
|
|
|
$
|
160.1
|
|
|
$
|
266.4
|
Weighted average number of common shares outstanding
|
|
|
|
|
79.9
|
|
|
|
84.8
|
|
|
|
81.4
|
|
|
|
87.0
|
Basic net income per share attributable to AGCO Corporation and
subsidiaries
|
|
|
|
$
|
0.78
|
|
|
$
|
0.73
|
|
|
$
|
1.97
|
|
|
$
|
3.06
|
Diluted net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to AGCO Corporation and subsidiaries
|
|
|
|
$
|
62.0
|
|
|
$
|
62.1
|
|
|
$
|
160.1
|
|
|
$
|
266.4
|
Weighted average number of common shares outstanding
|
|
|
|
|
79.9
|
|
|
|
84.8
|
|
|
|
81.4
|
|
|
|
87.0
|
Dilutive stock-settled appreciation rights, performance share awards
and restricted stock units
|
|
|
|
|
0.9
|
|
|
|
0.1
|
|
|
|
0.3
|
|
|
|
0.1
|
Weighted average number of common shares and common share
equivalents outstanding for purposes of computing diluted net
income per share
|
|
|
|
|
80.8
|
|
|
|
84.9
|
|
|
|
81.7
|
|
|
|
87.1
|
Diluted net income per share attributable to AGCO Corporation and
subsidiaries
|
|
|
|
$
|
0.77
|
|
|
$
|
0.73
|
|
|
$
|
1.96
|
|
|
$
|
3.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Repurchase Program
During the year ended December 31, 2016, the Company entered into
accelerated share repurchase agreements (“ASRs”) with a financial
institution to repurchase an aggregate of $212.5 million of shares of
the Company’s common stock. The Company received approximately 4,005,643
shares during the year ended December 31, 2016 related to the ASRs. All
shares received under the ASRs were retired upon receipt, and the excess
of the purchase price over par value per share was recorded to
“Additional paid-in capital” within the Company’s Condensed Consolidated
Balance Sheets.
In December 2016, the Company’s Board of Directors authorized a new
share repurchase program under which the Company can repurchase up to
$300.0 million of shares of its common stock through December 2019.
As of December 31, 2016, the remaining amount of shares authorized to be
repurchased under approved share repurchase programs is approximately
$331.4 million.
7. SEGMENT REPORTING
The Company’s four reportable segments distribute a full range of
agricultural equipment and related replacement parts. The Company
evaluates segment performance primarily based on income (loss) from
operations. Sales for each segment are based on the location of the
third-party customer. The Company’s selling, general and administrative
expenses and engineering expenses are charged to each segment based on
the region and division where the expenses are incurred. As a result,
the components of income (loss) from operations for one segment may not
be comparable to another segment. Segment results for the three months
and years ended December 31, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
North America
|
|
|
South America
|
|
|
Europe/Africa/ Middle East
|
|
|
Asia/ Pacific
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
447.4
|
|
|
|
$
|
308.1
|
|
|
|
$
|
1,187.1
|
|
|
$
|
151.4
|
|
|
|
$
|
2,094.0
|
(Loss) income from operations
|
|
|
|
|
(4.9
|
)
|
|
|
|
13.6
|
|
|
|
|
125.8
|
|
|
|
7.5
|
|
|
|
|
142.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
434.5
|
|
|
|
$
|
188.3
|
|
|
|
$
|
1,211.9
|
|
|
$
|
124.3
|
|
|
|
$
|
1,959.0
|
Income (loss) from operations
|
|
|
|
|
7.0
|
|
|
|
|
(4.4
|
)
|
|
|
|
132.7
|
|
|
|
(2.2
|
)
|
|
|
|
133.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
North America
|
|
|
South America
|
|
|
Europe/Africa/ Middle East
|
|
|
Asia/ Pacific
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
1,807.7
|
|
|
|
$
|
917.5
|
|
|
|
$
|
4,206.0
|
|
|
$
|
479.3
|
|
|
|
$
|
7,410.5
|
Income from operations
|
|
|
|
|
39.1
|
|
|
|
|
19.9
|
|
|
|
|
417.7
|
|
|
|
11.4
|
|
|
|
|
488.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
1,965.0
|
|
|
|
$
|
949.0
|
|
|
|
$
|
4,151.3
|
|
|
$
|
402.0
|
|
|
|
$
|
7,467.3
|
Income (loss) from operations
|
|
|
|
|
123.4
|
|
|
|
|
34.4
|
|
|
|
|
416.7
|
|
|
|
(27.6
|
)
|
|
|
|
546.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation from the segment information to the consolidated
balances for income from operations is set forth below:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Years Ended December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Segment income from operations
|
|
|
|
$
|
142.0
|
|
|
|
$
|
133.1
|
|
|
|
$
|
488.1
|
|
|
|
$
|
546.9
|
|
Corporate expenses
|
|
|
|
|
(29.4
|
)
|
|
|
|
(28.1
|
)
|
|
|
|
(119.7
|
)
|
|
|
|
(109.2
|
)
|
Stock compensation credit (expense)
|
|
|
|
|
1.1
|
|
|
|
|
(1.5
|
)
|
|
|
|
(16.9
|
)
|
|
|
|
(11.6
|
)
|
Restructuring expenses
|
|
|
|
|
(6.4
|
)
|
|
|
|
(7.7
|
)
|
|
|
|
(11.9
|
)
|
|
|
|
(22.3
|
)
|
Amortization of intangibles
|
|
|
|
|
(15.9
|
)
|
|
|
|
(10.5
|
)
|
|
|
|
(51.2
|
)
|
|
|
|
(42.7
|
)
|
Consolidated income from operations
|
|
|
|
$
|
91.4
|
|
|
|
$
|
85.3
|
|
|
|
$
|
288.4
|
|
|
|
$
|
361.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP MEASURES
This earnings release discloses adjusted income from operations,
adjusted net income, adjusted net income per share, net sales on a
constant currency basis and free cash flow, each of which excludes
amounts that are typically included in the most directly comparable
measure calculated in accordance with U.S. generally accepted accounting
principles (“GAAP”). A reconciliation of each of those measures to the
most directly comparable GAAP measure is included below.
The following is a reconciliation of reported income from operations,
net income and net income per share to adjusted income from operations,
net income and net income per share for the three months and years ended
December 31, 2016 and 2015 (in millions, except per share data):
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
Income From Operations
|
|
|
Net Income (1)
|
|
|
Net Income Per Share (1)
|
|
|
Income From Operations
|
|
|
Net Income (1)
|
|
|
Net Income Per Share (1)
|
As reported
|
|
|
|
$
|
91.4
|
|
|
$
|
62.0
|
|
|
$
|
0.77
|
|
|
$
|
85.3
|
|
|
$
|
62.1
|
|
|
$
|
0.73
|
Restructuring expenses (2) |
|
|
|
|
6.4
|
|
|
|
5.6
|
|
|
|
0.07
|
|
|
|
7.7
|
|
|
|
5.4
|
|
|
|
0.07
|
As adjusted
|
|
|
|
$
|
97.8
|
|
|
$
|
67.6
|
|
|
$
|
0.84
|
|
|
$
|
93.0
|
|
|
$
|
67.5
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Net income and net income per share amounts are after tax.
|
|
|
|
(2) |
|
The restructuring expenses recorded during the three months ended
December 31, 2016 related primarily to severance costs associated
with the Company’s rationalization of certain U.S., European,
Brazilian and Chinese manufacturing operations and various
administrative offices. The restructuring expenses recorded during
the three months ended December 31, 2015 related primarily to
severance costs associated with the Company’s rationalization of
certain U.S., European and Brazilian manufacturing operations and
various administrative offices.
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
Income From Operations
|
|
|
Net Income (1)
|
|
|
Net Income Per Share (1)
|
|
|
Income From Operations
|
|
|
Net Income (1)
|
|
|
Net Income Per Share (1)
|
As reported
|
|
|
|
$
|
288.4
|
|
|
$
|
160.1
|
|
|
$
|
1.96
|
|
|
$
|
361.1
|
|
|
$
|
266.4
|
|
|
$
|
3.06
|
Restructuring expenses (2) |
|
|
|
|
11.9
|
|
|
|
9.9
|
|
|
|
0.12
|
|
|
|
22.3
|
|
|
|
16.1
|
|
|
|
0.18
|
Deferred income tax adjustment (3) |
|
|
|
|
—
|
|
|
|
31.6
|
|
|
|
0.39
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
As adjusted
|
|
|
|
$
|
300.3
|
|
|
$
|
201.6
|
|
|
$
|
2.47
|
|
|
$
|
383.4
|
|
|
$
|
282.5
|
|
|
$
|
3.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Net income and net income per share amounts are after tax.
|
|
|
|
(2) |
|
The restructuring expenses recorded during the year ended December
31, 2016 related primarily to severance costs associated with the
Company’s rationalization of certain U.S., European, Brazilian and
Chinese manufacturing operations and various administrative offices.
The restructuring expenses recorded during the year ended December
31, 2015 related primarily to severance costs associated with the
Company’s rationalization of certain U.S., European and Brazilian
manufacturing operations and various administrative offices.
|
|
|
|
(3) |
|
During the second quarter of 2016, the Company recorded a non-cash
adjustment to increase the valuation allowance on its U.S. deferred
income tax assets of approximately $31.6 million.
|
|
|
|
The following table sets forth, for the three months and year ended
December 31, 2016, the impact to net sales of currency translation by
geographical segment (in millions, except percentages):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
|
Change due to currency translation
|
|
|
|
|
2016
|
|
|
2015
|
|
|
% change from 2015
|
|
|
$
|
|
|
%
|
North America
|
|
|
|
$
|
447.4
|
|
|
$
|
434.5
|
|
|
3.0
|
%
|
|
|
$
|
(6.1
|
)
|
|
|
(1.4
|
)%
|
South America
|
|
|
|
|
308.1
|
|
|
|
188.3
|
|
|
63.6
|
%
|
|
|
|
18.3
|
|
|
|
9.7
|
%
|
Europe/Africa/Middle East
|
|
|
|
|
1,187.1
|
|
|
|
1,211.9
|
|
|
(2.0
|
)%
|
|
|
|
(47.0
|
)
|
|
|
(3.9
|
)%
|
Asia/Pacific
|
|
|
|
|
151.4
|
|
|
|
124.3
|
|
|
21.8
|
%
|
|
|
|
(1.1
|
)
|
|
|
(0.9
|
)%
|
|
|
|
|
$
|
2,094.0
|
|
|
$
|
1,959.0
|
|
|
6.9
|
%
|
|
|
$
|
(35.9
|
)
|
|
|
(1.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
|
|
Change due to currency translation
|
|
|
|
|
2016
|
|
|
2015
|
|
|
% change from 2015
|
|
|
$
|
|
|
%
|
North America
|
|
|
|
$
|
1,807.7
|
|
|
$
|
1,965.0
|
|
|
(8.0
|
)%
|
|
|
$
|
(25.9
|
)
|
|
|
(1.3
|
)%
|
South America
|
|
|
|
|
917.5
|
|
|
|
949.0
|
|
|
(3.3
|
)%
|
|
|
|
(72.2
|
)
|
|
|
(7.6
|
)%
|
Europe/Africa/Middle East
|
|
|
|
|
4,206.0
|
|
|
|
4,151.3
|
|
|
1.3
|
%
|
|
|
|
(90.0
|
)
|
|
|
(2.2
|
)%
|
Asia/Pacific
|
|
|
|
|
479.3
|
|
|
|
402.0
|
|
|
19.2
|
%
|
|
|
|
(7.9
|
)
|
|
|
(2.0
|
)%
|
|
|
|
|
$
|
7,410.5
|
|
|
$
|
7,467.3
|
|
|
(0.8
|
)%
|
|
|
$
|
(196.0
|
)
|
|
|
(2.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is a reconciliation of net cash provided by operating
activities to free cash flow for the years ended December 31, 2016 and
2015 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
2015
|
Net cash provided by operating activities
|
|
|
|
|
|
|
|
$
|
369.5
|
|
|
|
|
|
|
|
|
$
|
524.2
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
|
|
|
|
(201.0
|
)
|
|
|
|
|
|
|
|
|
(211.4
|
)
|
Free cash flow
|
|
|
|
|
|
|
|
$
|
168.5
|
|
|
|
|
|
|
|
|
$
|
312.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170207005828/en/
Source: AGCO
AGCO Greg Peterson, 770-232-8229 Director of Investor Relations greg.peterson@agcocorp.com
|