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2nd quarter results in..

NA sales down 19% over last year..

yep that Massey marketing scheme is going swimmingly...
 

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Considering that the industry was up overall! Things would be pretty bleak in NA without Gleaner and Sunflower since the dictator has managed to destroy the market equity of other lines.

Will be fun to watch what happens when South America stops the huge farmer payout program, which by itself made AGCO's 2Q.

It is eerily similar to what is going on in Washington, "We don't care what you want, this is what you are getting"! "Ve have a good plan".
 

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When I was asking last week why its so hard to get a new 8600 series tractor they admitted they were 18 months out on production for the orders they have. So I would say its hard to get the sale numbers when you don't have the machines to sell.
 

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I know nothing about the manufacturing business but why would a company spend a great deal of time and money in R&D, then embark on a costly promotion and advertising blitz and not be ready for full scale production if the orders came in?
 

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A couple of things come to mind, if these are real demand issues, it is likely from South America as governments are supporting huge ag payments to producers, hence large growth in ag sector there. Secondly, if they are due to productions issues, it could be reduction in materials available for production builds which show less inventory in stock, therefore artificially boosting the earnings numbers on paper to make the dictator look good.
 

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Most of South American production is indigeneous from AGCO's own SA plants, the only exception is some of the higher HP Valtra's and engines for local combines, all coming from the Valtra plant. Henceforth has little or no effect on NA spec machines.

The MF plant at Beuvais, where the 86xx are made, was running at full capacity on two shifts, but has since slowed down. It is the length of the supply chain to the NA market that slows inventory and flexible response to the market.

One ray of hope for NA is that there is word of AGCO seeking to re establish a tractor plant in NA. However that is a big ticket item and I am sure state politics will come into it.
 

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I dought if you'll see any company investing major resourses in a plant in the U.S. with the current business climate here especially with the Democrats in power.
 

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You walk before you run, leaning up a company has caused controvesy. With the ecomomy still in the pits, how long will it be before ag takes the hit like the rest? Look around at all the 1-2 year old used equipment, who's going to buy it if everyone keeps buying new? I've said it before, I don't like loosing orange paint, but in the long run, it may prove a very shrewd move. Other colors dealers are taking 30-40,000 hits on used combines, how many can they do and still stay in buisness?
 
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