2011 AGCO Annual Report

7/30/2019 2011 AGCO Annual Report

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annualreport

2011

annualreport

2011


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SaleS by product

investing in solutions agco at a glance

02

agcos global presence aGco s g sg, m s g m.

Through our core brands, Challenger, Fendt, Massey Ferguson

and Valtra, as well as the GSI amily o brands, our products include

tractors, harvesting machinery, application machines, implements or

tillage, sowing and planting, grain storage and protein production

equipment. These products are manuactured worldwide and

supported by a network o over 3 ,100 dealers.

Led by innovative technology and underpinned by a huge breadth

o practical eperience and know-how, our agricultural equipment

and support services are providing armers with solutions to

tackle the enormous challenges o escalating global demand or

ood, uel and ber.

Corporate Headquarters

Regional Headquarters

Manuacturing

Light Assembly

Parts Distribution

Joint Venture

Licensee

Sales

Administrative Oce

Tractors 66%

Parts 15%

Combines 7%

Application Equipment 5%

Implements and Other 4%

Hay and orage 3%

North America 20%

South America 21%

EAME 54%

Rest o World 5%

2011 $4.48

2010 $2.32

2009 $1.55

SaleS by GeoGraphic reGion

adjuSted earninGS per Share


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chairmans message

We are optimistic about

the outlook For our

industry and are making

investments to ensure

agco is prepared to

meet the Future demand

For our products.

04

Fw Ss:I am pleased to report that 2011 was a year o eceptional

perormance or AGCO. The Company d elivered record sales

and earnings, introduced signicant innovations across our

product portolio and made key investments that position

the Company or uture growth. Looking into the uture,

the opportunities that eist or the global agricultural

equipment industry and our Company are signicant. The

growing population, increasing demand or ood, improved

diets and rising requirements or energy worldwide will

continue to support healthy long-term undamentals or

the agricultural industry. As armers seek to meet g rowing

ood demands and to oset higher production costs, the

rate o investment in arm equipment is increasing, oering

signicant opportunities. We are working hard to ensure

that AGCO remains well-positioned to take advantage o

these global trends.

F ssAGCOs sales reached $8.8 billion in 2011, growing over

27% compared to 2010. Adjusted earnings per share grew

more than 93% to $4.48. The strength o our end markets

continued to generate very positive results. Recovery in

Western Europe produced sales o nearly $4.7 billion

in our Europe/Arica/Middle East region, and operating

margins rebounded to 10.2%. Sales growth o 19% and

the positive impact o cost reduction initiatives helped our

North American segment improve operating margins by

nearly two percentage points. In South America, positive

arm undamentals produced strong industry demand in

Brazil and generated record AGCO sales o nearly $1.9

billion. Overall, we achieved record earnings while making

signicant investments in research and development and

other productivity initiatives.

dvg w ms wThe innovation, quality and perormance o our products

are instrumental to AGCOs vision o providing high-tech

solutions to proessional armers. In 2011 we continued to

reresh our ull line o equipment with a ocus on the high

horsepower range as well as new products which epand

our current product oering. In Brazil, we are introducing

more technology and localizing complimentary products. A

good eample is the introduction o localized sprayers or

our row crop customers. In Europe and North America, we

introduced a number o high technology tractor products

like the Fendt 700 Vario and the Challenger MT 600 both

equipped with SCR engine technology. These new tractor

models deliver better uel economy or our customers and

cleaner ehaust or a healthier environment.

AGCO has consistently invested in its tractor products and

distribution and is a global leader in tractor sales. We have

a signicant opportunity to leverage our strong brands

with new and improved harvesting products and improved

distribution capabilities. In 2011, we acquired the remaining

50% o the Laverda S.p.A combine harvester business based

in Breganze, Italy. Our new Massey Ferguson and Fendt high

perormance Class 8 combines went into production at the

Breganze actory in 2011, and both have enjoyed market

success in their rst season.

The latter part o 2011 also brought the introduction o

AGCOs rst sel-propelled orage harvester, the Fendt

Katana. Aimed at proessional armers who are already loyal

to the Fendt brand, it is epected that the Katana will open

sales opportunities both in the eed and silage sector and in

harvesting biomass crops.

Numerous industry awards rom around the globe served as

recognition that we are producing leading-edge machinery

to meet armers needs. These awards included Gold and

Silver medals and the Machine o the Year 2012 Award or

Massey Ferguson and Fendt at the Agritechnic a Farm Showin Germany; a gold medal at the Polagra 2012 in Poland or

Fendt; 2012 Finovation awards rom the American Society

o Agricultural and Biological Engineers or our windrowers,

planters, sprayers and combines; and the 2011 Fenabrave

Most Desired Brand award or Massey Ferguson i n

Brazil. Our increased investment in research, design and

engineering will continue to ensure we stay at the oreront

o arm equipment development.

ivsg sssWe are optimistic about the outlook or our industry and are

making investments to ensure AGCO is prepared to meet the

uture demand or our products. Our $220 million multi-year

investment plan at the Marktoberdor plant in Germany,

where we produce Fendt tractors and CVT transmissions,

will be completed in the summer o 2012. Production

capacity will increase and eciency improvements will be

possible thanks to improved technology and production

fow at the acility. We are improving the perormance o

our products and lowering their uel consumption by

utilizing more AGCO produced engines in our equipment.

More than hal o the tractors, combines, and sprayers we

manuactured in 2011 were equipped with AGCO engines,

twice the penetration rate compared to 2004.

exg aGcos In November, we completed the acquisition o GSI, a leading

global manuacturer o grain storage and protein production

systems. GSI is a strong, protable, well-managed company

with great brands, global reach and technology leadership. It

manuactures complete grain storage and handling solutions

or both armers and large-scale grain processors. GSIs protein

production product line supports both swine and poultry growers,

including eeders, nesting, and climate control systems. With

global protein consumption on the rise due to changing diets in

emerging markets, demand or both grain storage and swine and

poultry production is set to increase substantially. As emerging

markets adopt more sophisticated levels o technology, the

requirement or GSI products should continue to grow.


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chairmans message

investing in solutions

06

M rgcm, ps c exv o

emgg mksRussia and the CIS continue to have signicant growth

prospects. There is an i mmense amount o armland

in Russia, Ukraine and Kazakhstan being armed with

inecient machinery. The investment in arm equipment

dropped to very low levels over the last 15 years and

crop yields in this region have suered. We are epanding

our distribution in the CIS region and establishing local

manuacturing capabilities to take advantage o the

growth opportunities in these markets.

China is one o the worlds largest markets or small and

mid-size low specication agricultural tractors. Economic

progress in the region is driving more mechanization

to arms. Over the net ew years, we plan to invest in

production acilities in China. These will serve both domestic

and eport markets with ully assembled tractors as well

as drivelines and engines or assembly in other locations.

Strategic investment throughout Arica will place AGCOs key

brands at the heart o a continent on the cusp o the net

green revolution. The strengthening o dealer networks and

training acilities throughout the continent will enable AGCO

to urther establish our products throughout the region.

a Sg Ss okFarmers have been producing ood or thousands o years.

With rising populations epected over the net our decades,

they ace their biggest challenge yet. The United Nations

studies suggest that by 2050 global ood production will

have to increase by 70%. To boost global ood supply,

production eciency is being improved thanks to more

accurate use o ertilizers, new seed technology and

advancing mechanization. Farm equipment will be one o

the key actors in increasing arm productivity in the years to

come. AGCO has a powerul global platorm to capitalize on

a strengthening demand or agricultural equipment.

The achievement o long-term economic, social and

environmental sustainability goes hand-in-hand with

our mission to provide high-tech solutions or proessional

armers eeding the world. We aim to promote ecellence

in our employees through engagement, training anddevelopment. We strive to promote good citizenship

and strong ethics, while keeping our employees

needs paramount.

Our customers remain central to what we do, with their

protability the key driving orce behind the demand or our

products. We would like to thank them or their continued brand

loyalty and wish them every success or 2012. I would also like

to etend my personal thanks to our employees and dealers or

their ongoing dedication and or the critically important role they

continue to play in accomplishing AGCOs outstanding results.

Lastly, I thank my ellow shareholders or your continued

condence and support. 2012 is epected to be another year

o strong perormance and we will build on the successul

oundations put in place over the past several years. With healthyarm economics, record results and strategic investments to

strengthen our long-term growth, it is truly an eciting time to

be part o AGCO.


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in a challenging worldagcos role

08

population growth

increasing water consumption

CHANGING DIETS IN ASIA

ncreasing demand for biofueland alternative energies

increased demand to provide traceability

greater need for precision in agricultural production

ORE FOOD FROM LESS LAND

Populaton growth s set to be one o the

defnng ssues o the 21st century. From

todays 7 bllon, the global total s orecast

to soar to more than 9 bllon people by 2050.

Over the next 40 years, agrcultural producton

and yelds wll need to ncrease substantally.

Food securty s at the top o government

agendas around the world.

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Annual Report 2011


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10

WWW.agcocorp.com

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investing in solutions

agco is a global leaderin enhancing the

efficiency of farmers

around the world.


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investing in

sustainability

12

Our approach to long-term economic, social and

environmental sustainability is aligned with our vision

to provide high-tech solutions or proessional armers

eeding the world. AGCO aims to promote sustainable

and proftable growth through superior customer

service, innovation, quality and commitment.

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AnnualReport2011


8/25

providing

solutions

to our

customers

14

Farmers have a crucial job, and AGCO is supplying

the tools to help them do it. This includes all o the

support they require to keep operating no matterwhat conditions they ace.

From small amily arms to large-scale agribusinesses

harvesting many thousands o acres, we deliver on

our promise as Your Agriculture Company.

The AGCO ull-service eperience:

Innovative technology

Reliable, high-output, high-productivity machines

World-class parts supply

Highly responsive technical service support

Financial solutions through AGCO Finance

Knowledgeable, practical advice


9/25

16

Challenger n 2011

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AnnualReport2011

Smart Machnery, Serous Results

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Efcent Technology

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A World o Experence Workng wth You

Massey Ferguson n 2011

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12/25

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Valtra n 2011

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24

In 2011, AGCO completed the purchase o GSI, a leading manuacturero grain storage equipment and protein control systems.

gsi

Posting annual revenue o over $700 million in 2011,

GSI sells its products globally through more than 500

independent dealers. GSI etends AGCOs reach in the

agricultural industry and places the company in a strong

position in new market sectors. At the same time, AGCOsglobal presence, along with manuacturing and purchasing

capabilities, will provide additional opportunities to GSI or

growth and operational eciencies.

GSI is a market leader in the provision o grain bins,

material handling and conditioning machinery. Within

protein production, GSI provides a range o eed and

watering systems, climate control equipment and

connement nesting, putting the company at the oreront

in the supply o complete customer solutions.

The grain storage and protein production markets are

poised or signicant growth. Much o this increase will

come rom developing markets, as diets adapt and the

adoption o production technology increases.

GSI has a strong customer prole, supporting

multinational corporations, large businesses and individual

armers, oering AGCO signicant opportunities or

long-term growth in epanding sectors.

Annual Report 2011


14/25

26

AnnualReport2011

investing in

global harvesting

harvesting is the result oF months

oF hard Work, care and attention to

transForm tiny seeds into sustainable

and proFitable livelihoods.

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harvesting

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investing in research,

design andengineering

p

30

The development o technology to meet the demands o ood,

eed, uel and ber production is at the core o our research.

Our engineers and developers are continuing to push back

the boundaries o possibility with award-winning designs

and technological innovations in areas such as cleaner engine

emissions, improved uel eciency, controlled in-eld trac

guidance, data management and remote communications.

Since 2004, AGCO applications or engineering patents have

risen sevenold.

In 2011, we invested $276 million globally in engineering

and new product development. This included the launch o

the pioneering Tier 4 Interim/Stage B engine, complying with

both US and EU regulations.

AGCO embraces multiple modes o university cooperation

- rom graduate design projects to internships and

engineering scholarships.

AGCOs armer-ocused innovations

and practical application o technologyare helping growers to be moreproductive, ecient and protable.


17/25

AnnualReport2011

32

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investing in technology

Fendt Ecient Technology is a ocused philosophy to achieve MOREusing LESS resources and inputs. This is achieved using a number oinnovations rom Fendt to ensure that customers have a decisive edgein protability and cost-eectiveness, while protecting the environmentalong the way.

The spread o modern arming techniques and investment intechnological innovation is key to unlocking the ull potential o

the worlds land assets. AGCOs e3 strategy Energy, Economyand Ecology undamentally underlies the development o theCompanys agricultural solutions.


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AnnualReport2011

investing in

manuFacturing

34

We are aggressively implementing the AGCO Production

System (APS) initiative, across all our operations to drive

higher perormance levels in eciency and quality. This

has led to productivity increases at manuacturing sites in

addition to reductions in cycle times and lower inventory

levels, creating a manuacturing operation that is fexible and

responsive to changing market demands.

In a urther boost to quality, in 2011 we commenced the

design and implementation o AGCO Quality System (AQS).

AQS is designed specically to improve the delivered quality

to our customers.

With record levels o investment at manuacturing acilities

worldwide, AGCO has been able to improve production fow

and leverage global benets.

We are investing in core manuacturing process including

welding, abrication, paint, and test and inspection.

The installation o advanced robot welding cells is now

standardized across all operations.

We continue to rene the ootprint at every manuacturing

site to optimize the fow o materials and drive increased

eciencies. In addition, we are developing Manuacturing

Centers o Ecellence in select locations to leverage leading

technologies across multiple sites.

AGCO is building production acilities in China and epandingmanuacturing operations in the United States and Western Europe.Increasing production capabilities in these strategic geographicregions strongly positions AGCO to deliver relevant solutions tomeet our customers needs in the uture.


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Annual Report 2011

investing in

our people

and their

development

36

The international team o men and

women who work or AGCO worldwideare the driving orce o the Companyssuccess. By investing in employees anddeveloping their skills and knowledge,AGCO is reinorcing its growth plans.

AGCOs Global Human Resource unction acts

as a strategic partner enabling business success

through human capital solutions. Its mission is

to oster a dynamic global environment, which

attracts and inspires ecellence in AGCOs

people through engagement, training and

development, and opportunities or long-term

career advancement.

Workorce and Succession Planning are

key activities. These address critical stang

requirements aligned with strategic business

planning to ensure the Company has the right

people in the right place at the right time.

Talent acquisition and talent development are

two critical pillars o our Human Resources

strategy. To meet the needs o our growing

global business, in 2011, we implemented

a Global Talent Acquisition Process (GTAP)

across all regions. Talent acquisition and talent

development are two critical pillars o our

Human Resources strategy.

AGCO capitalizes on the unique skills and

multi-lingual abilities o individuals across

the regions and draws on their dierent

perspectives to add value to the business

through shared knowledge and best practices.

The provision o continuous, personal learning

and development is a core priority in AGCOs

employee ocus. This sustains a motivated and

high-perorming workorce, helping individuals

achieve their ull potential. Employees receiveproessional development through AGCO

University a global learning organization

growing a learning culture.

great products and great services

do not happen Without great people.


20/25

38

lz F F*Member o the

Board o BRF Brasil

Foods, S.A.

a M. c

Senior Vice President

and General Manager,

South America

r G. hm


Global Sales, Marketing

and Product Management

tm W. lS*Co-Chairman and CEO

Fisker Automotive, Inc.

r b. c


and General Manager,

North America

G l. S*

Former Group President

Caterpil lar Inc.

dv l. c


Materials Projects

M h. rg*Chairman, President and

Chie Eecutive Oicer, AGCO

l b. Sm


Human Resources

aw h. bk


Chie Financial Oicer

huberus M. Mueleuser

Senior Vice President and General

Manager, Europe, Arica & Middle East

FFiCERS &RECTORS:

om letright

p. Gg bs*President, College o Charleston

Wgg dm*

Former President and

CEO BayWa Corporation

Mk Svs*

Chairman and CEO o Tractors

and Farm Equipment Limited

d c. us*

President and CEO o

Navistar International

hks Vss*Chairman, Royal Huisman

Shipyards N.V.

d e. K

Vice President, General Counsel

and Corporate Secretary

G b. js*

Former President and CEO

Haworth, Inc.

hs-b Vm


Chie Supply Chain Oicer

G l. b Senior Vice President

Engineering Projects

Gg e. M*

Former Senior Vice President

and CFO, ITT Corporation

G l. c

Senior Vice President and General

Manager, Asia Paciic

* d


21/25

IN MILLIONS, ExCEPT PERCENTAGES, PER SHARE AMOUNTS AND EMPLOYEES

Years Ended December 31 2011 2010 2009 2008 2007

Operating Data:

Net sales $ 8,773.2 $ 6,896.6 $ 6,516.4 $ 8,273.1 $ 6,715.9

Gross prot 1,776.1 1,258.7 1,071.9 1,498.4 1,189.7

Percent o net sales 20.2% 18.3% 16.4% 18.1% 17.7%

Income rom operations 610.3 324.2 218.7 563.7 393.7

Percent o net sales 7.0% 4.7% 3.4% 6.8% 5.9%

Net income 585.3 220.2 135.4 385.9 232.9

N et ( in co me ) l os s a tt ri bu ta bl e t o n on co nt ro ll in g i nt er es ts ( 2.0) 0 .3 0 .3

Net income attributable to AGCO Corporation and subsidiaries $ 583.3 $ 220.5 $ 135.7 $ 385.9 $ 232.9

Net income per common share diluted (1) $ 5.95 $ 2.29 $ 1.44 $ 3.95 $ 2.41

Wei gh te d a ve ra ge s har es o uts ta nd in g d il ut ed 98 .1 96 .4 94 .1 97 .7 9 6. 6

Balance Sheet Data:

Cash and cash equivalents $ 724.4 $ 719.9 $ 651.4 $ 506.1 $ 574.8

Working capital 1,457.3 1,208.1 1,079.6 1,037.4 724.8

Total assets 7,257.2 5,436.9 4,998.9 4,846.6 4,698.0

To ta l l on g- te rm d eb t, e c lu di ng cur re nt p or ti on 1 ,4 09 .7 4 43 .0 4 54 .0 6 25 .0 2 94 .1

Stockholders equity 3,031.2 2,659.2 2,394.4 2,014.3 2,114.1

Other Data:

Number o employees 17,366 14,311 14,456 15,606 13,720

(1) The Company makes reerence to adjusted earnings per share, as reconciled below:

2011 2010 2009 2008 2007

Net income per common share diluted $ 5.95 $ 2.29 $ 1.44 $ 3.95 $ 2.41

Restructuring and other inrequent epenses (income)(2) 0.03 0.11 (0.03)

GSI acquisition(2)(3) (1.47)

Net income per common share - adjusted $ 4.48 $ 2.32 $ 1.55 $ 3.95 $ 2.38

(2) Ater ta.

(3) During 2011, the Company recorded a ta benet o $149.3 million and acquisition epenses o $5.8 million associated with the GSI acquisition as is more ully described in the

Companys audited Consolidated Financial Statements and Notes to its Consolidated Financial Statements which are included in the Companys annual report on Form 10-K.

is annual report includes orward-looking statements, including

e statements in the Ch airmans Message and other statements

rein regarding market demand, armer productivity and crop

lds, production levels, strategic initiatives and their eects, and

neral economic conditions. These statements are subject to

k that could cause actual results to dier materially rom those

ggested by the statements, including:

ur nancial results depend entirely upon the agricultural industry,

d actors that adversely aect the agricultural industry generally,

cluding declines in the general economy, increases in arm inputsts, lower commodity prices and changes in the availability o

edit or our retail customers, will adversely aect us.

e poor perormance o the general economy had adversely

pacted our sales and may continue to have an adverse impact on

r sales in the uture, the extent o which we are unable to predict,

d there can be no assurance that our results will not continue to

aected by the weakness in global economic conditions.

ur success depends on the introduction o new products, which

quire substantial ependitures and may not be well received in

e market place.

e ace signicant competition and, i we are unable to complete

ccessully against other agricultural equipment manuacturers,

e would lose customers and our revenues and protability

ould decline.

ost o our sales depend on the retail customers obtaining

ancing, and any disruption in their ability to obtain nancing,

hether due to the current economic downturn or otherwise, will

sult in the sale o ewer products by us. A large portion o the

tail sales o our products are nanced by our retail nance joint

ntures with Rabobank, and any diculty on Rabobanks part to

nd the venture would adversely impact sales i our customers

ould be required to utilize other retail nancing providers.

e collectability o receivables that are created rom our sales,

well as rom nancing obtained by our customers through our

tail nancing joint ventures, is critical to our business.

We depend on suppliers or raw materials, components and

parts or our products, and any ailure by our suppliers to provide

products as needed, or by us to promptly address supplier

issues, will adversely impact our ability to timely and eciently

manuacture and sell products.

A majority o our sales and manuacturing take place outside

o the United States, and, as a result, we are eposed to risks

related to oreign laws, taes, economic conditions, labor supply

and relations, political conditions and governmental policies.

These risks may delay or reduce our realization o vale rom ourinternational operations.

Volatility with respect to currency echange rates and interest

rates can adversely aect our reported results o operations and

the competitiveness o our products.

We are subject to etensive environmental laws and regulations,

and our compliance with, or our ailure to comply with, eisting

or uture laws and regulations could delay production o our

products or otherwise adversely aect our business.

We have signicant pension obligations with respect to our

employees, and our available cash fow may be adversely aected

in the event that payments became due under any pension plans

that are ununded or underunded. Declines in the market value

o the securities used to und these obligations result in increased

pension epense in uture periods.

We are subject to raw material price fuctuations, which can

adversely aect our manuacturing costs.

In connection with our outstanding indebtedness, we are subject

to certain restrictive covenants and payment obligations that may

adversely aect our ability to operate and epand our business.

We disclaim any obligation to update orward-looking statements

ecept as required by law

selected Financial inFormationorWard-looking statementsAnnualReport2011

40


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dm 31 2011 2010

aSSetS

Current Assets:

Cash and cash equivalents $ 724.4 $ 719.9

Accounts and notes receivable, net 994.2 908.5

Inventories, net 1,559.6 1,233.5

Deerred ta assets 142.7 52.6

Other current assets 241.9 206.5

Total current assets 3,662.8 3,121.0

Property, plant and equipment, net 1,222.6 924.8

Investment in aliates 346.3 398.0

Deerred ta assets 37.6 58.0

Other assets 126.9 130.8

Intangible assets, net 666.5 171.6

Goodwill 1,194.5 632.7

Total assets $ 7,257.2 $ 5,436.9

liabilitieS and StocKholderS eQuity

Current Liabilities:

Current portion o long-term debt $ 60.1 $ 0.1

Convertible senior subordinated notes 161.0

Securitization acilities 113.9

Accounts payable 937.0 682.6

Accrued epenses 1,080.6 883.1

Other current liabilities 127.8 72.2

Total current liabilities 2,205.5 1,912.9

Long-term debt, less current portion 1,409.7 443.0

Pensions and postretirement health care benets 298.6 226.5

Deerred ta liabilities 192.3 103.9

Other noncurrent liabilities 119.9 91.4

Total liabilities 4,226.0 2,777.7

Sks eq:

AGCO Corporation stockholders equity:

Preerred stock; $0.01 par value, 1,000,000 shares authorized, no shares issued oroutstanding in 2011 and 2010

Common stock; $0.01 par value, 150,000,000 shares authorized, 97,194,732 and93,143,542 shares issued and outstanding at December 31, 2011 and 2010,respectively

1.0 0.9

Additional paid-in capital 1,073.2 1,051.3

Retained earnings 2,321.6 1,738.3

Accumulated other comprehensive loss (400.6) (132.1)

Total AGCO Corporation stockholders equity 2,995.2 2,658.4

Noncontrolling interests 36.0 0.8

Total stockholders equity 3,031.2 2,659.2

Total liabilities and stockholders equity $ 7,257.2 $ 5,436.9

IN MILLIONS, ExCEPT SHARE AMOUNTS

The Consolidated Balance Sheets should be read in conjunc tion with the Companys Managements Discussion and Analysis o Financial Condition and Results o Operations and theCompanys audited Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements, which are included in the Companys Annual Reporton Form 10-K.

MILLIONS, ExCEPT PER SHARE DATA

s e dm 31 2011 2010 2009

t sales $ 8,773.2 $ 6,896.6 $ 6,516.4

st o goods sold 6,997.1 5,637.9 5,444.5

Gross prot 1,776.1 1,258.7 1,071.9

ling, general and administrative epenses 869.3 692.1 630.1

gineering epenses 275.6 219.6 191.9

structuring and other inrequent (income) epenses (0.7) 4.4 13.2

mortization o intangibles 21.6 18.4 18.0

Income rom operations 610.3 324.2 218.7

erest epense, net 30.2 33.3 42.1

her epense, net 19.1 16.0 22.2

come beore income taes and equity in net earnings o aliates 561.0 274.9 154.4

come ta provision 24.6 104.4 57.7

come beore equity in net earnings o aliates 536.4 170.5 96.7

uity in net earnings o aliates 48.9 49.7 38.7

et income 585.3 220.2 135.4

et (income) loss attributable to noncontrolling interests (2.0) 0.3 0.3

et income attributable to AGCO Corporation and subsidiaries $ 583.3 $ $220.5 $ 135.7

et income per c ommon share attributable to AGCO Corporation and subsidiaries:

Basic $ 6.10 $ 2.38 $ 1.47

Diluted $ 5.95 $ 2.29 $ 1.44

eighted average number o common and common equivalent shares outstanding:

Basic 95.6 92.8 92.2

Diluted 98.1 96.4 94.1

Consolidated Statements o Operations should be read in conjunction with the Companys Managements Discussion and Analysis o Financial Condition and Results oerations and the Companys audited Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements, which are included in the Companysnual Report on Form 10-K.

consolidated balance sheetsconsolidated statements oF operations

42

AnnualReport2011


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cmm Sk am o cmsv lss

Shares AmountAdditional

Paid-in CapitalRetainedEarnings

Dened BenetPension Plans

CumulativeTranslationAdjustment

DeerredLosses onDerivatives

Accumulated OtherComprehensive

LossNoncontrolling

Interests

TotalStockholders

Equity

ComprehensiveIncome

Attributableto AGCO

Corporationand subsidiaries

Comprehensive (Loss)Income

Attributable to Non-controllingInterests

lance, December 31, 2008 91,844,193 $ 0.9 $ 1,067.4 $ 1,382.1 $ (138.1) $ (257.9) (40.1) $ (436.1) $ $ 2,014.3

Net income (loss) 135.7 (0.3) 135.4 $ 135.7 $ (0.3)Issuance o restricted stock 26,388 0.6 0.6

Issuance o perormance award stock 581,393 (5.2) (5.2)

Stock options and SSARs eercised 1,691

Stock compensation 7.4 7.4Investments by noncontrolling interest 1.3 1.3Dened benet pension plans, net o taes:

Net actuarial loss arising during year (75.6) (75.6) (75.6) (75.6)Amortization o net actuarial losses included in net periodic pension cost 5.4 5.4 5.4 5.4Deerred gains and losses on derivatives, net 35.4 35.4 35.4 35.4Deerred gains and losses on derivatives held by aliates, net

0.6 0.6 0.6 0.6Reclassication to temporary equity-

Equity component o convertible senior subordinated notes (8.3) (8.3)Change in cumulative translation adjustment 282.9 282.9 0.2 283.1 282.9 0.2

lance, December 31, 2009 92,453,665 0.9 1 ,061.9 1,517.8 (208.3) 25.0 (4.1) (187.4) 1.2 2,394.4 384.4 (0.1)

Net income (loss) 220.5 (0.3) 220.2 220.5 (0.3)Issuance o restricted stock 17,303 0.7 0.7


Stock options and SSARs eercised 56,326

Stock compensation 12.7 12.7Conversion o 13/4% convertible senior subordinated notes 60,986

Repurchase o 13/4% convertible senior subordinated notes (21.1) (21.1)Dened benet pension plans, net o taes:

Prior service cost arising during year (2.8) (2.8) (2.8) (2.8)Net actuarial gain arising during year 23.5 23.5 23.5 23.5Amortization o prior service cost included in net periodic pension cost 1.8 1.8 1.8 1.8Amortization o net actuarial losses included in net periodic pension cost 6.7 6.7 6.7 6.7Deerred gains and losses on derivatives, net 2.5 2.5 2.5 2.5Deerred gains and losses on derivatives held by aliates, net 0.2 0.2 0.2 0.2Reclassication to temporary equity-

Equity component o convertible senior subordinated notes 8.3 8.3Change in cumulative translation adjustment 23.4 23.4 (0.1) 23.3 23.4 (0.1)

lance, December 31, 2010 93,143,542 0.9 1 ,051.3 1,738.3 (179.1) 48.4 (1.4) (132.1) 0.8 2,659.2 275.8 (0.4)

Net income 583.3 2.0 585.3 583.3 2.0Issuance o restricted stock 12,034 0.7 0.7


Stock options and SSARs eercised 60,992 (0.7) (0.7)Stock compensation 23.7 23.7Conversion o 13/4% convertible senior subordinated notes 3,926,574 0.1 (0.1)

Investments by noncontrolling interests 34.6 34.6Distribution to noncontrolling interest (1.5) (1.5)Change in air value o noncontrolling interest (0.2) 0.2Dened benet pension plans, net o taes:

Prior service cost arising during year (5.0) (5.0) (5.0) (5.0)Net actuarial loss arising during year (61.8) (61.8) (61.8) (61.8)Amortization o prior service cost included in net periodic pension cost 0.1 0.1 0.1 0.1Amortization o net actuarial losses included in net periodic pension cost 5.6 5.6 5.6 5.6Deerred gains and losses on derivatives, net (5.4) (5.4) (5.4) (5.4)Deerred gains and losses on derivatives held by aliates, net 2.5 2.5 2.5 2.5Change in cumulative translation adjustment (204.5) (204.5) (0.1) (204.6) (204.5) (0.1)

lance, December 31, 2011 97,194,732 $ 1.0 $ 1,073.2 $ 2,321.6 $ (240.2) $ (156.1) $ (4.3) $ (400.6) $ 36.0 $ 3,031.2 $ 314.8 $ 1.9

MILLIONS, ExCEPT SHARE AMOUNTS

The Consolidated Statements o Stockholders Equity should be read in conjunction with the Companys Managements Discussion and Analysis o Financial Condition and Results oOperations and the Companys audited Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements, which are included in the Companys AnnualReport on Form 10-K.

consolidated statements oF stockholders equity

44

AnnualReport2011


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MILLIONS

s e dm 31 2011 2010 2009

sh fows rom operating activities:

Net income $ 585.3 $ 220.2 $ 135.4

Adjustments to reconcile net income to net c ash provided by operating activities:

Depreciation 151.9 135.9 118.8

Deerred debt issuance cost amortization 2.9 2.9 2.8

Amortization o intangibles 21.6 18.4 18.0

Amortization o debt discount 8.2 15.3 15.0

Stock compensation 24.4 13.4 8.0

Equity in net earnings o aliates, net o cash received (19.0) (14.8) (21.0)

Deerred income ta (benet) provision (127.6) 2.9 (21.9)

Other (1.3) 0.1 1.4

Changes in operating assets and liabilities, net o eects rom purchase o businesses:

Accounts and notes receivable, net (0.1) (21.2) 241.2

Inventories, net (221.0) (60.6) 277.1

Other current and noncurrent assets (11.0) (92.8) 40.8

Accounts payable 162.3 70.6 (380.3)

Accrued epenses 183.5 114.9 (68.1)

Other current and noncurrent liabilities (34.2) 33.5 (19.3)

Total adjustments 140.6 218.5 212.5

Net cash provided by operating activities 725.9 438.7 347.9

sh fows rom investing activities:

Purchases o property, plant and equipment (300.4) (167.1) (206.6)

Proceeds rom sale o property, plant and equipment 1.5 0.9 2.1

(Purchase) sale o businesses, net o cash acquired (1,018.0) (81.5) 0.5

Investments in consolidated aliates, net o cash acquired (34.8)

Investments in unconsolidated aliates, net (8.3) (25.4) (17.6)

Restricted cash and other (3.7) 37.1

Net cash used in investing activities (1,363.7) (273.1) (184.5)

sh fows rom nancing activities:

R ep urc ha se o r c on ver si on o c on ve rti bl e se ni or s ub or di nat ed n ote s (1 61. 0) ( 60 .8)

Proceeds rom debt obligations 1,676.9 71.4 282.3

Repayments o debt obligations (826.4) (109.2) (343.2)

Proceeds rom issuance o common stock 0.3 0.5

Payment o minimum ta withholdings on stock compensation (2.5) (11.3) (5.2)

Payment o debt issuance costs (14.8) (0.1)

(Distribution to) investments by noncontrolling interest (1.5) 1.3

Net cash provided by (used in) nancing activities 671.0 (109.4) (64.9)

ects o echange rate changes on cash and cash equivalents (28.7) 12.3 46.8

rease in cash and cash equivalents 4.5 68.5 145.3

sh and cash equivalents, beginning o year 719.9 651.4 506.1

sh and cash equivalents, end o year $ 724.4 $ 719.9 $ 651.4

e Consolidated Statements o Cash Flows should be read in conjunction with the Companys Managements Discussion and Analysis o Financial Condition and Results o Operationsd the Companys audited Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements, which are included in the Companys Annual Report onm 10-K.

2012 AGCO CorporationAll rights reserved. Incorporated in Delaware. An Equal Opportunity Employer.AGCO, Fendt, Massey Ferguson, Valtra and their respective logos as well as corporate and product indentity used herein are trademarks o AGCO or its subsidiaries andmay not be used without permission. Challenger is a registered trademark o Caterpillar, Inc. and may not be used without permission.

US$

250

200

150

100

50

02006 2007 2008 2009 2010 2011

AGCO Corporation

Customer Peer Group

S&P Midcap 400 Index

PERFORMANCE GRAPHThe graph shown (above) is a line graph presentation o the Companys cumulative stockholder returns on an indexed basis as compared to the S&PMid-Cap 400 Index and a sel-constructed peer group o the companies listed in ootnote 1 to the perormance graph (Peer Group). Returns orthe Company in the graph are not necessarily indicative o uture perormance

Assumes $100 invested on January 1, 2007. Assumes dividend reinvested. Fiscal year ending Decembe 31, 2011.(1) Based on inormation or a sel-constructed peer group o companies which includes the ollowing: Caterpillar Inc., CNH Global NV, Cummins Inc., Parker-Hannin Corporation

and Terex Corporation.

corporate headquarters4205 River Green ParkwayDuluth, Georgia 30096 US770-813-9200

transFer agent & registrarComputershare Trust Company, N.A.250 Royall StreetCanton, MA 02021 US

stock exchangeAGCO Corporation common stock (trading symbol is AGCO) is traded onthe New York Stock Exchange.

independent registered public accounting FirmKPMG LLPAtlanta, Georgia US

Form 10-kThe Form 10-K annual report to the Securities and Exchange Commissionis available in the Investors Section o our corporate web site (www.agcocorp.com), under the heading SEC Filings, or upon request romthe Investor Relations Department at corporate headquarters.

annual meetingThe annual meeting o the Companys stockholders will be held at 9:00a.m. ET. on April 26, 2012 at the oces o AGCO Corporation,4205 River Green Parkway, Duluth, Georgia 30096 US

consolidated statements oF cash FloWs

46

comparison oF cumulative total return


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Farmers have been

producing Food For

thousands oF years. With

rising populations expected

over the next Four decades,

they Face their biggestchallenge yet.

2011

2011 AGCO Annual Report

Documents

Transcript of 2011 AGCO Annual Report