Becasue I like beating dead horses...

There was an article in the Farm Journal online blog about NA tractor and combine sales being up this last quarter.  I guess if AGCO's NA sales aren't up, maybe AGCO did something wrong, LIKE DROPPING THE ORANGE LINE!!!!!
BTW Tom, beating a dead horse is probably more PC as the PETA guys might not protest  -  as much.

TomYaz wrote: JohnCO wrote: There was an article in the Farm Journal online blog about NA tractor and combine sales being up this last quarter.  I guess if AGCO's NA sales aren't up, maybe AGCO did something wrong, LIKE DROPPING THE ORANGE LINE!!!!! BTW Tom, beating a dead horse is probably more PC as the PETA guys might not protest  -  as much.     Well, according to AGCO, third quarter NA unit sales are up.  For the year it is +2%. However for the year SALES $ is down -9%   So that means they are dropping prices to move units? hmm Mixed bag.

Edited by John (C-IL) - 26 Oct 2010 at 11:28am

I must say that I have very low interest in them right now, too.

This is very curious, listened to call concerning improvements to NA. Questions are where is improvement coming from? Industry sales according to AEM are up 46.9% for 100HP and greater row crop, up 20% for 4WD's and 11% for combines in September. AGCO's 3Q release document manipulates overall industry numbers by including compacts to show an overall increase of 2%. AGCO's numbers (row crop tractors) are down, WAY DOWN! (They won't admit how much) Apparently the bright spots were Gleaner and Sunflower in NA, however, the new  S7 was not in any pictures in the earnings release nor was it even mentioned by the dictator wrecking ball. As previously stated, SA is saving their bacon, and it will be interesting to see what happens when the SA governments stop writing the big checks to farmers and there is no more Orange tractor. I don't see how this book cooking ponzi scheme can keep going.

And, no Tom, You are not beating a dead horse, this subject is way too important to drop and needs to be kept at the forefront. What this foreign interloper has done is despicable. Many people are going to be hurt when the game quits working.

On page 5 of slide presentation, it shows what they claim for industry numbers, (heavily diluted by the glorified lawnmowers - compacts), and right below, they have "down" arrows to show AGCO's results for tractors and combine numbers in NA. Problem is, they won't provide specifics. From what I have heard, most dealers are still selling Orange as they can get them, once they are gone they are perplexed as to what comes next.

I'm sure it's not uncommon for industry but AGCO has often put out crazy numbers to justify what their doing on the inside.  In past years NA was slammed for not making them any money but who knows if they put all their exec salaries, etc. in NA.  This year is different either because they want to boost NA to show they did the right thing or the new tax law actually came into effect where over seas profits from NA companies are now taxed.  I heard that was coming but don't know if it did or is.  Either way, their screwed.  They made a bonehead decision to cut orange without any good financial reason.  They alienated a portion of the customer base at a time where there was a financial crisis. 

AGCO, however big, is still only a fraction of the size with a fraction of the assets AC had.  AGCO brags that they are the only big Ag company to be only in Ag but if you ask any financial analysts what you should do with your finances they'll say have investments in multiple  places that have little to do with one another.   AC had power generation, construction equipment, pumps, Ag equipment, etc.   Point is, AC was in a much better position before the fall than AGCO has ever been and AC went down because of bad management and bad timing with the economy.   That IS something AGCO has in common with AC...bad management and bad timing with the economy.   I'll be shocked if they survive.