FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

CAPITAL GOODS: AGCO (AGCO Baa2/BBB-[P]/NR): 2Q24 Results

CAPITAL GOODS

Weak outlook for agricultural machinery is well known due to lower food commodity prices pressuring farmers’ cash flow, particularly affecting South America. Nonetheless, material downward changes to guidance here, with negative read across for larger € issuers CNH Industrial and Deere as well.

  • Revenue missed by 7%. Despite already depressed expectations, sales missed across regions with South America particularly bad.
  • Adj. EBIT missed by 11%. Margin was better than 1Q but still a touch lower than expected.
  • Further production hours cuts are planned for 2H. FY24 Unit tractor sales are now expected to drop 10-15% in North America (10% previously) and 25-30% in South America (20% previously). That’s resulted in a 7% cut to revenue expectations, 5% below consensus. 
  • FCF was better YoY at -$328mn vs -$602mn mainly due to lower WC buildup. 
  • FY24 FCF outlook has been cut to $450-600mn, a 33% reduction at mid-point. On the positive side, leverage is low (less than 1x a FY23) but will uptick.
  • Webcast 15.00 BST https://edge.media-server.com/mmc/p/2s9sr9dj/
BulletCredit Bullets
BulletCredit Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.