AGCO Corporation (AGCO) has reported a 36.33 percent plunge in profit for the quarter ended Jun. 30, 2015. The company has earned $107.10 million, or $1.22 a share in the quarter, compared with $168.20 million, or $1.77 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $110 million, or $1.25 a share compared with $168.20 million or $1.77 a share, a year ago. Revenue during the quarter dropped 24.76 percent to $2,069.30 million from $2,750.30 million in the previous year period. Gross margin for the quarter contracted 123 basis points over the previous year period to 21.73 percent. Total expenses were 92.76 percent of quarterly revenues, up from 90.30 percent for the same period last year. That has resulted in a contraction of 245 basis points in operating margin to 7.24 percent.
Operating income for the quarter was $149.90 million, compared with $266.70 million in the previous year period.
However, the adjusted operating income for the quarter stood at $153.90 million compared to $266.70 million in the prior year period. At the same time, adjusted operating margin contracted 226 basis points in the quarter to 7.44 percent from 9.70 percent in the last year period.
"Our second quarter results reflect the significant challenges caused by weaker global industry demand and currency headwinds," stated Martin Richenhagen, AGCO's chairman, president and chief executive officer.
AGCO forecasts revenue to be in the range of $7,700 million to $7,900 million for fiscal year 2015.
Operating cash flow turns positive
AGCO Corporation has generated cash of $28 million from operating activities during the first half as against cash outgo of $254.20 million in the last year period. The company has spent $124.30 million cash to meet investing activities during the first six months as against cash outgo of $154.10 million in the last year period. It has incurred net capital expenditure of $100.50 million on net basis during the first six months, down 34.74 percent or $53.50 million from year ago period.
Cash flow from financing activities was $279.90 million for the first six months as against cash outgo of $323.60 million in the last year period.
Cash and cash equivalents stood at $498.20 million as on Jun. 30, 2015, up 54.10 percent or $174.90 million from $323.30 million on Jun. 30, 2014.
Working capital declines
AGCO Corporation has witnessed a decline in the working capital over the last year. It stood at $1,416.30 million as at Jun. 30, 2015, down 18.74 percent or $326.60 million from $1,742.90 million on Jun. 30, 2014. Current ratio was at 1.60 as on Jun. 30, 2015, down from 1.62 on Jun. 30, 2014.
Cash conversion cycle (CCC) has increased to 105 days for the quarter from 103 days for the last year period. Days sales outstanding went up to 46 days for the quarter compared with 40 days for the same period last year.
Days inventory outstanding has decreased to 103 days for the quarter compared with 105 days for the previous year period. At the same time, days payable outstanding was almost stable at 43 days for the quarter, when compared with the previous year period.
Debt moves up
AGCO Corporation has witnessed an increase in total debt over the last one year. It stood at $1,515.90 million as on Jun. 30, 2015, up 23.74 percent or $290.80 million from $1,225.10 million on Jun. 30, 2014. Total debt was 20.29 percent of total assets as on Jun. 30, 2015, compared with 14.47 percent on Jun. 30, 2014. Debt to equity ratio was at 0.47 as on Jun. 30, 2015, up from 0.30 as on Jun. 30, 2014. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
