DULUTH / US, 13 February 2025: AGCO Corporation (NYSE: AGCO), a major player in agricultural machinery and precision ag technology, has announced a supply agreement with Italian manufacturer SDF to enhance its Massey Ferguson tractor line.
The collaboration, slated to begin in mid-2025, will focus on producing tractors up to 85 horsepower for global markets.
This partnership aims to strengthen Massey Ferguson's position in the low to mid-range horsepower tractor segment, providing farmers with diverse powertrain options. Luis Felli, Senior Vice President and General Manager of Massey Ferguson, emphasized the companies' shared commitment to serving farmers and anticipates increased customer satisfaction and market share.
SDF's Chief Commercial Officer, Alessandro Maritano, highlighted their vertically integrated production system and expertise in component manufacturing as key to ensuring product excellence and innovation. The companies aim to leverage their combined strengths to enhance customer loyalty and drive profitable growth through high-quality production and economies of scale. The transition to the new Massey Ferguson products will be phased in across global regions starting mid-2025.
AGCO, headquartered in Duluth, Georgia, reported net sales of approximately $11.7 billion in 2024. SDF, based in Treviglio, Italy, generated revenues of €2.031 billion in 2023. This partnership is expected to leverage the strengths of both companies to better serve the agricultural sector.
In other recent news, AGCO reported fourth-quarter 2024 results with revenue falling short of analyst expectations. The company posted adjusted earnings per share of $1.97, aligning with estimates, but revenue was $2.89 billion, missing the $3.17 billion forecast. This represents a 24% year-on-year decline, attributed to market challenges and production cuts. For full-year 2024, AGCO reported net sales of $11.7 billion and adjusted earnings per share of $7.50. The company reaffirmed its 2025 outlook, projecting net sales of approximately $9.6 billion and earnings per share between $4.00 and $4.50. These developments reflect AGCO's efforts to manage lower global agricultural equipment demand through cost control and restructuring.
