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We all KNEW this was happening, period. Yes, there were a couple of members, including one from Canada, and the other in Europe, who said otherwise, but they obviously were not reading AGCO's quarterly.
Only some 9 or so months ago, the dictator demanded a halt to Great Silver. the customers and fans of this magnificent line held breath and even prayed it would not happen. It did not. However, despite corporate reports to the contrary, it was the same time period, when the Orange tractors were taken away.
I had said, many times, the Silver combines would eventually die off, without the Orange. Apparently it is happening. The Great Silver Fleet looks quite pekid now.
 

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You'd be surprised at just how much hay equipment AGCO sells.

"In the first quarter of 2010, industry unit retail sales of tractors were up modestly compared to the same period in 2009. The expectation of higher farm income and improving farmer sentiment contributed to the strength in retail sales of high horsepower tractors and combines. Continued weakness in the dairy and livestock sectors contributed to lower industry unit retail sales of mid-range tractors and hay equipment, which both declined compared to 2009 levels. "

http://www.agcocorp.com/_ui/images/Earnings_Release_Q1_10_Final.pdf
 

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Discussion Starter · #5 ·
what do you mean "without the Orange"? Those large tractor sold are still Orange for now...

Also, the report, IF to be believed, says smaller tractor sales are dropping..Hmm arent those the Red ones?

I wonder how Deere, CIH did on smaller tractors?


Methinks you may be whistling past the graveyard...
 

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Compacts would all be Massey or Challenger, yes. In which case dropping the Orange line should have had no effect on them. Although allowing Orange dealers to sell them likely would improve the margin! More distribution never hurts.

Either way, I guess they'll get compacts now once the Orange dealers sign up with either Massey or Challenger. I'm just ready for them to get it over with at this point.
 

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They might be signing up with massey or challenger, but mostly to get access to parts to keep current customers going until another product line is procured. These customers didn't want the massey or challenger before. They won't want it now either.
 

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Funny, if it is due to dairy and the hay segment causing tractor sales to slide, Why has McCormicks sales nearly doubled in 1Q? There forte is the dairy and hay segment. Maybe not so fast on the blame game. Tractor sales have tanked! Also in the era of Richenhagen, the AGCHEM lines have lost 50% market share, not sales, but MARKET SHARE! Keep it going Marty! Do you miss Orange yet Marty?
 

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Why has McCormick sales nearly doubled? They had a ton of inventory that they needed to move so they discounted deeply and offered very low interest on the old inventory to get it moved.

Challenger does not sell compact tractors, only Massey brand, all of the small market is down.

I agree that Agco has issues, but so does Deere, Case, and New Holland and probably the smaller manufacturers like Kubota, McCormic too.
 

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Combiness, quit your rambling...

Tractor sales were up... haying equipment was down hard.

Deere and CNH are no better off with that respect. Cattle prices are low, dairy prices are low, so nobody was / is buying new haying equipment. It doesn't take a genius to see that, just drive around and look.

You could buy a brand new 120HP McCormick (forget the model), with all bells and whistles for $78,500 CAD... That tends to draw in customers if your unit is as cheap as a Russian import!
 

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Christian you really so your intelligence. Cattle prices are the highest they have been in a long time. You are as bad as a little kid, you just won't drop this thing. Maybe you never will grow up but we all like AGCO, just not some of the suits decisions.
Now you will probably ban me because I call it like I see it.
 

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From Deere's first Qtr:


Quote:Summary of Operations
Net sales of the worldwide equipment operations decreased 7 percent for the quarter, including a favorable currency-translation effect of 5 percent and improved price realization of 2 percent. Equipment net sales in the United States and Canada declined 8 percent for the quarter. Net sales outside the United States and Canada were down 6 percent, with a favorable currency-translation effect of 12 percent.


All the OEM's are affected by the wider economy, AGCO is no different. Yes realise consolidation will disaffect some people but why such negativity - the Orange tractors are still there, go buy them. If you buy them they will surely make some more. There is one year of availability - use it or lose it. If you want the Orange machines to be a core brand step up and make it one.
 

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what do you mean "without the Orange"? Those large tractor sold are still Orange for now...

Also, the report, IF to be believed, says smaller tractor sales are dropping..Hmm arent those the Red ones?

I wonder how Deere, CIH did on smaller tractors?


Methinks you may be whistling past the graveyard...

Here in my part of Illinois, the orange tractor sales have been minimal. I have felt all along that the consolidation of tractor lines would and had to happen. This area was once loaded with orange tractors but the Duetz debacle pretty much killed that in the late 80's and early 90's. At best they have 1% of the tractor market in this area, so technically you don't have much to lose.

To me the big thing here locally has been the demise of Gleaner combines and White planters. I know of 3 R series combines within 10 miles of my farm that have changed colors, add that to 2 the year before. Now were getting to a point where there aren't many of them around anymore either. The White planter demise is even worse. In that same 10 miles we lost 4 White planter before the 09 planting season and 3 more this year.

They have really become the laughing stock of the AG community.
 

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Combiness, quit your rambling...

Tractor sales were up... haying equipment was down hard.

Deere and CNH are no better off with that respect. Cattle prices are low, dairy prices are low, so nobody was / is buying new haying equipment. It doesn't take a genius to see that, just drive around and look.

You could buy a brand new 120HP McCormick (forget the model), with all bells and whistles for $78,500 CAD... That tends to draw in customers if your unit is as cheap as a Russian import!

If a decline is hay equipment can significantly offset and increase in tractor sales, that doesn't say much about tractor sales now does it.

Plus as someone else pointed out Cattle and milk prices have rebounded significantly from their lows.
 

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I think one contributing factor that a lot of people don't realize, is a lot of people have lost faith in the company, and don't trust them, and are not happy with them at all. That is probably going to be a bigger loss to the company, than an orange tractor. McCormicks sales have picked up, because their dealer network has had a dramatic increase filling the void left by AGCO. Bulher may be reaping the same benefits also. AGCO has lost the trust of their customers, and the dealers probably aren't horribly thrilled by what has happend either.
 

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Combiness, quit your rambling...

Tractor sales were up... haying equipment was down hard.

Deere and CNH are no better off with that respect. Cattle prices are low, dairy prices are low, so nobody was / is buying new haying equipment. It doesn't take a genius to see that, just drive around and look.

You could buy a brand new 120HP McCormick (forget the model), with all bells and whistles for $78,500 CAD... That tends to draw in customers if your unit is as cheap as a Russian import!

We all know that the new MF series 2600HD and all of the 500 series tractors are technological marvels, didn't the 500 series just get synchronized mechanical transmissions? And if I recall, the 2600HD is sourced from India - Simpson LTD, 500 series from Canoas Brazil. Super high tech!

Take a look at the YTD AEM reports, only segment down is 40-100HP, and that only 11.1%! All other segments are UP. The exact market segment of where the India and Brazil sourced tractors are targeted! Interesting. You are absolutely right combiness, it comes down to a matter of TRUST and AGCO has burned all of theirs.

But not to worry, the dictator informed everybody on the conference call yesterday that 3Q and 4Q will see a substantial jump in sales for NA. Can't wait.


http://www.aem.org/Trends/USAg/
 

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Discussion Starter · #20 ·
1. Where did AGCO say NA tractor sales are "up"?? NOWHERE.
All they did say was utility tractors where down while larger tractors sales remain "strong"... And "Strong" is a really relative BS term...

2. I have a hard time beleiving Hay equipment sales drop alone would amount to such a huge loss of 30%

3. As stated, Deere was down what, only 7% in the hay/dairy?

Translation: Things have gotten WORSE for AGCO in NA since the announcement. This quarter statement tried to sugar coat it just like our politicians do...
 
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