News

DULUTH, Ga.--(BUSINESS WIRE)--Sep. 16, 2009-- AGCO, Your Agriculture Company, (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, announced today that it has updated its outlook for 2009 net sales and adjusted earnings per share. The Company now expects net sales to decline 23% to 25% as compared to 2008 and for 2009 adjusted earnings per share to range from $1.30 to $1.50. Sales and operating income in AGCO’s Europe/Africa/Middle East region are now expected to be lower than previously forecasted due to softening market conditions, slowing order in-take, continuing efforts to reduce dealer inventories, and lower than anticipated margins.

“During the third quarter, we are experiencing lower than anticipated levels of demand in our European operations, especially in the important markets of Germany, France and the United Kingdom,” stated Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer. “We are making more aggressive cuts in our production schedule than previously discussed in order to reduce our Company and dealer inventories.”

Third quarter 2009 sales are now expected to be approximately 30% to 35% below third quarter 2008 levels, and third quarter 2009 net income per share is now expected to be at or slightly below breakeven levels.

The Company will discuss its new guidance this morning at the JP Morgan Diversified Industries Conference. Andy Beck, AGCO's Senior Vice President and Chief Financial Officer, will be speaking at 9:00 a.m. EDT. Investors may listen to a live webcast of the presentation by accessing the link in the "Investors /Calendar of Events" section at www.agcocorp.com. A replay of the call is expected to be available one hour after the completion of the presentation.

AGCO expects to announce financial results for its third quarter of 2009 on October 27, 2009.

The references above to adjusted earnings per share is a non-GAAP measure. Adjusted earnings per share is calculated by excluding restructuring and other infrequent expenses. In 2009, the Company expects total restructuring and other infrequent expenses to be approximately $0.07 per share.

Safe Harbor Statement

This press release contains forward-looking statements regarding sales, earnings per share and operating income. Actual results may differ materially from those suggested by these forward-looking statements for a number of reasons including the development of demand for our products and the general demand for farm equipment, and competitive response by other manufacturers of farm equipment. For additional information regarding factors that could impact results, please see our Form 10-K for the year ended December 31, 2008, as filed with the Securities and Exchange Commission. AGCO disclaims any obligation to update any forward-looking statements except as required by law.

ABOUT AGCO

AGCO, Your Agriculture Company, (NYSE: AGCO) was founded in 1990 and offers a full product line of tractors, combines, hay tools, sprayers, forage, tillage equipment, implements, and related replacement parts. AGCO agricultural products are sold under the core brands of Challenger®, Fendt®, Massey Ferguson® and Valtra®, and are distributed globally through more than 2,800 independent dealers and distributors, in more than 140 countries worldwide. AGCO provides retail financing through AGCO Finance. AGCO is headquartered in Duluth, Georgia, USA. In 2008, AGCO had net sales of $8.4 billion. Please visit our website at www.AGCOcorp.com.

Source: AGCO

AGCO
Greg Peterson, 770-232-8229
Director of Investor Relations
greg.peterson@agcocorp.com