1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ------------ April 10, 2001 Date of Report (Date of earliest event reported) ------------ AGCO CORPORATION (Exact name of registrant as specified in its charter) Delaware 1-12930 58-1960019 (State of (Commission file number) (I.R.S. Employer incorporation) Identification No.) 4205 River Green Parkway Duluth, Georgia 30096 (Address of principal executive offers including zip code) (770) 813-9200 (Registrant's telephone number, including area code) ================================================================================ 2 ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits 99.1 Slides from management presentation by AGCO Corporation. 99.2 Information regarding forward-looking statements. ITEM 9. REGULATION FD DISCLOSURE. Registrant is furnishing to the Securities and Exchange Commission the information about the registrant attached to this Form 8-K as exhibits 99.1 and 99.2. The information contained in Exhibit 99.1 is qualified by, and should be read in conjunction with, the information contained in Exhibit 99.2. The registrant undertakes no obligation to update this information, including any forward-looking statements, to reflect subsequently occurring events or circumstances. 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AGCO Corporation By: /s/ Stephen D. Lupton -------------------------------------- Stephen D. Lupton Senior Vice President and General Counsel Dated: April 10, 2001 4 EXHIBIT INDEX Exhibit Description - ------- ----------- 99.1 Slides from management presentation by AGCO Corporation. 99.2 Information regarding forward-looking statements.
1 EXHIBIT 99.1 SLIDES FROM MANAGEMENT PRESENTATION BY AGCO CORPORATION THE FOLLOWING PRESENTATION IS NOT AN OFFER TO SELL OUR SECURITIES OR A SOLICITATION OF OFFERS TO BUY OUR SECURITIES. The following presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Reference is made to Exhibit 99.2 to this Current Report on Form 8-K, which is incorporated by reference herein, for information about forward-looking statements. 2 [AGCO LOGO] ROADSHOW PRESENTATION ================================================================================ APRIL 2001 3 - -------------------------------------------------------------------------------- OFFERING OVERVIEW - -------------------------------------------------------------------------------- 2
Issuer AGCO Corporation Issue ____% Senior Notes (the "Notes") Gross Proceeds $250,000,000 Distribution 144A with Registration Rights Maturity 2008 (7 years) Optional Redemption 4 year non-call On or after May 1, 2005 at certain specified prices plus accrued interest declining to 100% of their principal amount, plus accrued interest, on or after 2007 Change of Control Upon a Change of Control, the Company will be required to make an offer to purchase the Notes at a purchase price equal to 101% of their principal amount, plus accrued interest Use of Proceeds Refinance existing bank debt 4 - -------------------------------------------------------------------------------- SENIOR MANAGEMENT REPRESENTATIVES Robert J. Ratliff Executive Chairman of the Board Donald R. Millard Senior Vice President and Chief Financial Officer - -------------------------------------------------------------------------------- 3 5 - -------------------------------------------------------------------------------- Introduction to AGCO - Formed in 1990 by a management buyout of Allis-Chalmers - 18 highly successful acquisitions have grown company's revenues from $220 million in 1990 to $2.6 billion PF 2000; equity market cap of $700 million - World's third largest player with brands of: AGCO(R), Allis, Massey Ferguson(R), Hesston(R), White, GLEANER(R), New Idea(R), AGCOSTAR(R), Tye(R), Farmhand(R), Blencoe(R), Fendt, Spra-Coupe(R) and Willmar(R) - Strong Market Positions: #3 North America; #1 Germany; #2 France; #1 South America - Extensive network of 7,750 independent dealers and distributors,associates and licensees - Ag-Chem: world's premier sprayer line and access to new blue chip customer base - -------------------------------------------------------------------------------- 4 6 - -------------------------------------------------------------------------------- PRIMARY PRODUCTS AND SERVICES TRACTORS [PICTURE 1] [PICTURE 2] [PICTURE 3] COMBINES [PICTURE 1] [PICTURE 2] - -------------------------------------------------------------------------------- 5 7 - -------------------------------------------------------------------------------- PRIMARY PRODUCTS AND SERVICES (CONT'D) HAY TOOLS AND SPRAYERS [PICTURE 1] [PICTURE 2] [PICTURE 3] [PICTURE 4] PARTS AND SERVICES [PICTURE 1] - ------------------------------------------------------------------------------- 6 8 [AGCO LOGO] OVERVIEW OF THE GLOBAL AGRICULTURAL EQUIPMENT INDUSTRY ============================================================== 9 [AGCO LOGO] - -------------------------------------------------------------------------------- INDUSTRY OVERVIEW AGRICULTURAL EQUIPMENT INDUSTRY HAS UNDERGONE SIGNIFICANT CONSOLIDATION [PIE CHART DEPICTING THE FOLLOWING: Deere 29% AGCO 11%* Case - New Holland 28% Other 32%] (*)Does not include sales by licensees and associates ESTIMATED 2000 AGRICULTURAL WORLDWIDE EQUIPMENT SALES: $21 BILLION Source: J. P. Morgan - -------------------------------------------------------------------------------- 8 10 [AGCO LOGO] - -------------------------------------------------------------------------------- CURRENT STATUS OF THE AGRICULTURAL MARKET 1999-2000 REPRESENTED THE WEAKEST FARM EQUIPMENT ENVIRONMENT IN NORTH AMERICA IN OVER A DECADE. - Global commodity prices remain low due to bountiful crops for the fourth consecutive year - Farmer financial condition remains healthy due to government payments/subsidies in North America, Western Europe and South America - In the North American market (which is the bellwether for the industry), US farm debt remains low relative to historical standards - China's potential entrance into the WTO establishes a major export market for commodities and would help lift global commodity prices - -------------------------------------------------------------------------------- 9 11 [AGCO LOGO] - -------------------------------------------------------------------------------- WESTERN EUROPE MARKET OVERVIEW INDUSTRY SALES OF TRACTORS AND COMBINES [BAR GRAPH DEPICTING UNIT SALES OF TRACTORS AND COMBINES FROM 1984-2000] - - Key Factors Affecting Market - CAP Reform - Mad cow and other livestock diseases Source: USDA - -------------------------------------------------------------------------------- 10 12 [AGCO LOGO] - -------------------------------------------------------------------------------- NORTH AMERICAN MARKET OVERVIEW INDUSTRY SALES OF TRACTORS (EXCLUDING COMPACTS) AND COMBINES [BAR GRAPH DEPICTING UNIT SALES OF TRACTORS AND COMBINES FROM 1990-2000] - - Key Factors Affecting Market - Low commodity prices - Freedom to Farm Act - Low US farm debt levels - High farm income Source: USDA - -------------------------------------------------------------------------------- 11 13 [AGCO LOGO] - -------------------------------------------------------------------------------- SOUTH AMERICA MARKET OVERVIEW INDUSTRY SALES OF TRACTORS AND COMBINES (BRAZIL AND ARGENTINA) [BAR GRAPH DEPICTING UNIT SALES OF TRACTORS AND COMBINES FROM 1990-2000] - - Key Factors Affecting Market - Government Financing (FINAME) Source: USDA - -------------------------------------------------------------------------------- 12 14 - -------------------------------------------------------------------------------- MARKET OUTLOOK - - Western European markets are expected to be down by 5% in 2001 due to the CAP reform and BSE ("mad cow") and hoof and mouth uncertainties - - Modest industry recovery expected in North America in 2001 - - Improved pricing expected in the US due to low dealer inventory levels and reduced discounting - - South American markets continue to improve with the stability in Brazil - - YTD February 2001 sales versus YTD February 2000 were up in all markets except Western Europe - -------------------------------------------------------------------------------- 13 15 [AGCO LOGO] INVESTMENT HIGHLIGHTS -------------------------------------------------------------- 16 - -------------------------------------------------------------------------------- DIVERSIFIED GEOGRAPHIC AND PRODUCT SALES AGCO'S GEOGRAPHIC DIVERSIFICATION AND MULTIPLE PRODUCTS PROVIDE BUFFER TO REGIONAL DYNAMICS. 2000 NET SALES -- $2.3 BILLION INTRODUCTION OF PRODUCTS INTO NEW MARKETS AND STRENGTHENING OUR GLOBAL DISTRIBUTION NETWORK WILL FURTHER DIVERSIFY OUR GEOGRAPHIC REVENUE STREAM. - -------------------------------------------------------------------------------- 15
Pie Chart depicting the following: Pie Chart depicting the following: Europe 50% Utility Tractors 31% North America 29% Row Crop Tractors 30% South America 10% Combines 6% Asia/Pacific 4% Hay & Forage 6% Rest of World 7% Parts 19% Compact Tractors 2% Other 6% 17 - -------------------------------------------------------------------------------- LEADING MARKET POSITIONS - - Massey Ferguson is the most widely sold tractor in the world - -------------------------------------------------------------------------------- 16
2000 2000 AGCO 2000 MARKET SIZE MARKET SHARE MARKET (UNITS) (%) POSITION ------------------------------------------------------------------------------------------------------------ Western Europe 173,676 14 2 France 37,965 14 2 Germany 25,000 26 1 Spain 19,500 14 3 UK 11,175 14 3 North America 165,813 6 3 South America 29,065 32 1 Brazil 24,591 33 1 Argentina 2,091 39 1 Africa 7,800 23 2 Licensee Markets India 244,597 16 2 Turkey 34,500 40 1 Pakistan 28,000 45 1 ------------------------------------------------------------------------------------------------------------ 18 - -------------------------------------------------------------------------------- HIGHLY VARIABLE COST STRUCTURE THE COMPANY'S EFFICIENT HORIZONTAL MANUFACTURING STRATEGY AND ONGOING PRODUCT COST REDUCTION INITIATIVES PROVIDE CONTINUED FLEXIBILITY IN A CHALLENGING ENVIRONMENT. - - Flexible and efficient manufacturing capabilities combined with highly variable cost structure enable the Company to react quickly to changes in market conditions - - Outsourcing of major components allows ratcheting down of production without leaving capital intensive machinery idle Global Manufacturing Costs - -------------------------------------------------------------------------------- 17
Pie chart depicting the following: Materials 79% Overhead 12% Director Labor 9% 19 - -------------------------------------------------------------------------------- COST REDUCTION EFFORTS SINCE LATE 1998 WHEN THE CURRENT AGRICULTURAL DOWNTURN COMMENCED, MANAGEMENT HAS REACTED SWIFTLY TO REDUCE COSTS, GENERATE CASH AND REPAY INDEBTEDNESS. - Multi-phase cost reduction effort to generate $150 million of cost savings KEY TACTICS/STRATEGIES - Facilities rationalization - Material cost reductions - Manufacturing efficiency programs - Working capital reductions - Resourcing - Common product platforms - Strategic alliances - -------------------------------------------------------------------------------- 18 20 - -------------------------------------------------------------------------------- COST REDUCTION EFFORTS - -------------------------------------------------------------------------------- 19
STATUS - -------------------------------------------------------------------------------------------------------------------- Phase I $50 million - $53 million operating expense reduction achieved Complete in 1999 attributable to headcount and discretionary spending reductions - -------------------------------------------------------------------------------------------------------------------- Phase II Step 1 25 million - Facilities rationalization -- North America Complete -- South America Step 2 25 million - Material cost reductions from purchasing On-Going - Product resourcing (ex.: Turkey sourced product On-Going relocated to Brazil) - Common product platforms (ex.: cabs) On-Going - Strategic alliances -- Same Deutz-Fahr Complete - -------------------------------------------------------------------------------------------------------------------- Phase III $50 million - Cost Reduction Teams ("CRT") On-Going - Product warranty improvement On-Going - Product and component redesign On-Going - Other manufacturing initiatives 2002/2003 - Additional strategic alliances 2002/2003 - -------------------------------------------------------------------------------------------------------------------- $150 million - -------------------------------------------------------------------------------------------------------------------- 21 - -------------------------------------------------------------------------------- PROVEN BUSINESS STRATEGY - - Introduce products into new markets and strengthen global distribution network - - Continue to focus on improving North American presence through initiatives at the dealer level - - Capitalize on the significant opportunity that exists for continued consolidation in the agricultural equipment industry by selectively pursuing strategic acquisitions - - Continue cost reduction initiatives, which are expected to total$150 million in savings by 2003 - - Maintain conservative financial policies consisting of applying free cash flow to debt reduction and making selective acquisitions - -------------------------------------------------------------------------------- 20 22 [AGCO LOGO] AG-CHEM ACQUISITION ================================================================================ 23 - -------------------------------------------------------------------------------- AG-CHEM ACQUISITION - Total purchase price -$247.2 million ($25.80 per Ag-Chem share) - Consideration is approximately 55% cash and 45% AGCO shares - AGCO will refinance or assume approximately $45 million of Ag-Chem debt - Expect closing in April 2001 - Equipment division highly profitable -over 26% gross margins historically - Significant rationalization opportunity - -------------------------------------------------------------------------------- 22 24 - -------------------------------------------------------------------------------- AG-CHEM OVERVIEW - Manufactures specialized, off-road heavy equipment for the application of fertilizer and chemicals to farm fields - Environmentally friendly and cost effective - Other equipment includes industrial equipment to distribute bio-solid waste into the soil, chemical transport vehicles and orchard sprayers - Sell direct to large blue chip customer base - Strong brand name, reputation and market share - Clear leader in the $1 billion market for pre-and post-emergent spraying equipment, of which roughly 90% is in North America MARKET FOR PRE-AND POST-EMERGENT SPRAYING EQUIPMENT(1) (1) CSFB Research - -------------------------------------------------------------------------------- 23
Pre-Emergent Post-Emergent (1/3 of market) (2/3 of market) ---------------------------------------------- Ag-Chem 60% 25% AGCO -- 25 Deere -- 25 CNH 10 15 Others 30 10 ---------------------------------------------- 25 - -------------------------------------------------------------------------------- AG-CHEM HISTORICAL FINANCIAL INFORMATION ($ millions) (a) Eliminate one-time charge for axle product recall - ------------------------------------------------------------------------------- 24
1996 1997 1998 1999 2000(a) - ------------------------------------------------------------------------------------------------------------------ Net Sales 280.2 318.2 322.1 292.7 298.8 Gross Profit 79.8 85.6 87.2 78.0 66.4 EBITDA (Total) 29.8 28.1 24.8 17.4 13.8 EBITDA Margin (Total) 10.6% 8.8% 7.7% 5.9% 4.6% EBITDA (Excluding Soilteq) 31.4 30.4 28.9 22.5 18.1 EBITDA Margin (Excluding Soilteq) 11.2% 9.6% 9.0% 7.7% 6.1% - ------------------------------------------------------------------------------------------------------------------ 26 - -------------------------------------------------------------------------------- AG-CHEM OPPORTUNITIES TO INCREASE VALUE REVENUES - Open new markets outside North America - Migration of agriculture to larger farms - Crossover sales of AGCO products - Finance purchase of retail equipment through AGCO Finance EXPENSES - Material cost savings } } EXPECT $30 MILLION - Product rationalization } ANNUALLY WITHIN 3 } YEARS; $10 MILLION - Facility rationalization } NEXT 12 MONTHS } - Improve profitability of parts and service } - -------------------------------------------------------------------------------- 25 27 - -------------------------------------------------------------------------------- AG-CHEM 2000 PROFORMA INCLUDING AGCO SYNERGIES (a) Eliminate one-time charge for axle product recall (b) Eliminate losses from Soilteq division (c) Cost savings resulting from plant consolidations, parts/service synergies, administrative synergies, and purchasing synergies (d) Sales growth from use of AGCO distribution in South America and Europe - -------------------------------------------------------------------------------- 26
($ millions) AG-CHEM INCLUDING SYNERGIES SYNERGIES ACTUAL PRODUCT LESS &COST SALES AND SALES 9/30/00 RECALL(a) SOILTEQ(b) SAVINGS(c) GROWTH(d) GROWTH - ---------------------------------------------------------------------------------------------------------------- Net Sales $298.8 (2.6) 30.0 $326.2 Cost of Sales 232.4 (5.1) (10.0) 22.2 239.5 Gross Profit 66.4 5.1 (2.6) 10.0 7.8 86.7 S,G&A 66.5 -- (7.1) (20.0) 0.9 40.3 Operating (0.1) 5.1 4.5 30.0 6.9 46.4 Income/ (Loss) EBITDA $ 8.6 5.1 4.3 30.0 6.9 $ 54.9 - ---------------------------------------------------------------------------------------------------------------- 28 [AGCO LOGO] HISTORICAL OPERATING AND FINANCIAL PERFORMANCE ================================================================= 29 [AGCO LOGO] - -------------------------------------------------------------------------------- SOURCES AND USES AS OF 12/31/00 ($ millions) - -------------------------------------------------------------------------------- 28
SOURCES USES ======================================================= =========================================== Issuance of AGCO Equity $ 114.8 Fund Ag-Chem Transaction $ 247.2 New Credit Facility 115.4 Refinance Ag-Chem Debt 28.5 Senior Notes 250.0 Refinance Existing Bank Debt 314.2 Funding Under Receivables Securitization 135.0 Other Expenses 25.3 - ------------------------------------------------------- ------------------------------------------- Total Sources $ 615.2 Total Uses $ 615.2 ======================================================= =========================================== 30 [AGCO LOGO] - -------------------------------------------------------------------------------- PRO FORMA CAPITALIZATION - -------------------------------------------------------------------------------- 29
($ in millions) AGCO AS OF PRO FORMA EXISTING CAPITALIZATION DATA 12/31/00 12/31/00 ========================================================================================= Cash $ 13.3 $ 13.4 Debt: New Secured Credit Facility -- $ 115.4 Existing Unsecured Credit Facility $ 314.2 -- New Senior Notes -- 250.0 8.5% Senior Sub Notes due 2006 248.6 248.6 Other Debt 7.4 23.9 - ----------------------------------------------------------------------------------------- Total Debt $ 570.2 $ 637.9 Stockholders' Equity 789.9 902.0 - ----------------------------------------------------------------------------------------- Total Capitalization $ 1,360.1 $ 1,539.9 ========================================================================================= 31 [AGCO LOGO] - -------------------------------------------------------------------------------- SUMMARY FINANCIAL STATISTICS ($ millions) - -------------------------------------------------------------------------------- 30
Year Ended December 31, =========================================================== 1997 1998 1999 2000 PF2000 ============================================================================================= OPERATING RESULTS Net Sales $ 3,254 $ 2,971 $ 2,436 $ 2,336 $ 2,633 EBITDA, as adjusted 407 286 158 156 160 Total Debt 727 924 692 570 638 Stockholders' Equity 992 982 829 790 902 OPERATING STATISTICS Sales Growth 38.9% (8.7)% (18.0)% (4.1)% -- EBITDA Margin 12.5 9.6 6.5 6.7 6.1% CREDIT STATISTICS Debt/Total Capitalization 42.3% 48.5% 45.5% 41.9% 41.4% Debt/EBITDA 1.8x 3.2x 4.4x 3.7x 4.0x EBITDA/Interest Expense 5.8 3.5 2.2 2.6 2.3 ============================================================================================= 32 [AGCO LOGO] - -------------------------------------------------------------------------------- KEY FACTORS IMPACTING 2000 FINANCIAL RESULTS - - Continued weakness in the agricultural sector - - Cost savings benefits due to restructuring (in gross margin) -- increasing from 14.7% in 1999 to 16.1% in 2000 - - Reduced production schedules to maintain target inventory levels - - Weakness in Western European sales offset by increases in North America and South America - - Accounts receivable facility - - Margins on exports from the UK have been negatively impacted by the Sterling/Euro exchange rate - - Currency translation - -------------------------------------------------------------------------------- 31 33 - -------------------------------------------------------------------------------- FREE CASH FLOW THE COMPANY HAS INCREASED FREE CASH FLOW IN RECENT YEARS BY EFFICIENTLY MANAGING WORKING CAPITAL AND REDUCING CAPITAL EXPENDITURES. THE FLEXIBILITY TO REDUCE CAPITAL EXPENDITURES IS A BENEFIT OF AGCO'S HORIZONTAL MANUFACTURING STRATEGY. (1) Accounts receivable declined by $200 million in January 2000 due to the Securitization. - -------------------------------------------------------------------------------- 32
($ millions) Year Ended December 31, ----------------------------------------- 1997 1998 1999 2000 - -------------------------------------------------------------------------------- EBITDA, as adjusted $407 $286 $158 $156 Capital Expenditures (72) (61) (44) (58) Interest Expense (71) (82) (71) (60) Taxes (35) (50) (37) (30) Working Capital (171) (102) 224 143 (1) Other Assets and Liabilities (13) (1) (26) (6) ---- ---- ---- ---- FREE CASH FLOW $ 45 ($10) $204 $145 - -------------------------------------------------------------------------------- 34 - -------------------------------------------------------------------------------- WORKING CAPITAL REDUCTIONS SIGNIFICANT REDUCTIONS IN WORKING CAPITAL HAVE CONTRIBUTED TO THE COMPANY'S STRONG CASH FLOW. STEPS TAKEN TO REDUCE WORKING CAPITAL INCLUDE REDUCING DEALER INVENTORY, REDUCING PRODUCTION LEVELS AND USING DEMAND FLOW TECHNOLOGY FOR PRODUCTION INVENTORY. [CHART OF % OF WORKING CAPITAL TO [CHART OF ACCOUNTS RECEIVABLE AND SALES FOR 1998 Q3 TO 2000 Q4] INVENTORY FOR 1998 Q3 TO 2000 Q4] (1) Working Capital consists of accounts receivable plus inventory less accounts payable. - -------------------------------------------------------------------------------- 33 35 - -------------------------------------------------------------------------------- DEBT REDUCTION ($ in millions) [BAR GRAPH SHOWING LEVELS OF DEBT, EQUITY AND DEBT-TO-CAPITAL RATIO FOR Q4 1998, Q4 1999, Q4 2000 AND Q4 2000 (PROFORMA)] - -------------------------------------------------------------------------------- 34 36 - ------------------------------------------------------------------------------- ASSET PROTECTION -- The Company has a significant amount of assets that protect the value of the bonds - -------------------------------------------------------------------------------- 36
PRO FORMA 2000 - ----------------------------------------------------------------------- Inventory $ 648.3 Receivables 482.4 Property, Plant and Equipment 368.0 Investments 86.5 - ----------------------------------------------------------------------- Total $1,585.2 Less: Revolver 115.4 Debt at Non-Guarantor Subsidiaries 23.1 Working Capital at Non-Guarantor Subsidiaries 471.0 - ----------------------------------------------------------------------- Excess Assets $ 975.7 Senior Notes 250.0 Senior Note Coverage 3.9x - ----------------------------------------------------------------------- 37 - -------------------------------------------------------------------------------- CREDIT HIGHLIGHTS - Strong cash flow generation even in trough of cycle - Cost cutting on core AGCO business will drive another $75 million in savings over the next few years - Additional $30 million in saving from cost reductions at Ag-Chem - Well positioned for industry up-turn - Focused on returning to investment grade - -------------------------------------------------------------------------------- 35
1 EXHIBIT 99.2 FORWARD-LOOKING STATEMENTS Unless the context otherwise requires, references herein to "we," "us," "our" and similar terms mean AGCO Corporation. This document contains numerous forward-looking statements about the financial condition, results of operations, cash flows, dividends, financing plans, business strategies, operating efficiencies or capital and other expenditures, competitive positions, growth opportunities for existing products, plans and objectives of management, markets for our stock and debt securities and other matters. The words "estimate," "project," "intend," "expect," "believe," "forecast" and similar expressions are intended to identify these forward-looking statements, but some of these statements use other phrasing. In addition, any statement in this document that is not a historical fact is a "forward-looking statement." Except as required by law, we expressly disclaim any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Such forward-looking statements, wherever they occur in this document, are necessarily estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. In addition to the specific risk factors described in the section entitled "Risk Factors" in our registration statements and reports filed with the Securities and Exchange Commission, important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to: - general economic and capital market conditions; - the demand for agricultural products; - the levels of new and used field inventories; - weather conditions; - interest and foreign currency exchange rates; - the conversion to the Euro; - pricing and product actions taken by competitors; - customer access to credit; - production disruptions; - supply and capacity constraints; - our cost reduction and control initiatives; - our research and development efforts; - dealer and distributor actions; - technological difficulties; and - political and economic uncertainty in various areas of the world.