| Author |
 Topic Search  Topic Options
|
AllisChalmers37 
Orange Level
Joined: 11 Jul 2010
Location: London,KY
Points: 1846
|
 Post Options
 Thanks(0)
 Quote  Reply
 Topic: AGCO Bought Another Company
Posted: 07 Jan 2012 at 10:24pm |
AGCO Buys Majority Stake of Brazilian Sugarcane Harvester OEM | | by Adam Fleck | 06 Jan 12 |  | | | We're maintaining our $49 fair value estimate for AGCO AGCO after the company's announced $31 million purchase of a 60% ownership in Brazilian sugarcane harvesting machinery OEM Santal. Management had alluded to such a purchase in October 2011, and the target firm's product line will help AGCO compete with rivals Deere DE and CNH Global CNH in the important sugarcane harvester market, which should enjoy outsize growth due to government initiatives for increased mechanization in sugar growing. However, given the relatively small cash outlay (less than half a percent of our expected 2011 revenue for AGCO), we doubt the deal will prove material in the near term. Moreover, we caution that although AGCO continues to lead the geography in traditional tractors, the firm's share slipped below 50% in 2011 from 54% in 2010 due to Deere's recent new product launches; we don't think the addition of AGCO's new product line will fully offset this negative factor. |
|
|
1937 WC, 1950 CA, 1959 D14, 1967 190XT, 2006 Ram 3500
|
 |
|
Sponsored Links
|
|
|
redline
Orange Level
Joined: 11 Sep 2009
Location: Collins, IA
Points: 1013
|
Post Options
Thanks(0)
Quote Reply
Posted: 07 Jan 2012 at 11:13pm |
|
Oh good! Something else they can slap a Massey sticker on.
|
|
If it weren't for the last minute, I wouldn't get anything done!
|
|
JohnCO
Orange Level
Joined: 11 Sep 2009
Location: Niwot Colo
Points: 8992
|
Post Options
Thanks(0)
Quote Reply
Posted: 07 Jan 2012 at 11:43pm |
|
"Moreover, we caution that although AGCO continues to lead the geography
in traditional tractors, the firm's share slipped below 50% in 2011 from
54% in 2010 due to Deere's recent new product launches; we don't think
the addition of AGCO's new product line will fully offset this negative
factor."
Hummm, you don't suppose P***ing off their biggest market share of the US may have had something to do with it?
|
|
"If at first you don't succeed, get a bigger hammer"
Allis Express participant
|
|
SHAMELESS
Orange Level
Joined: 13 Sep 2009
Location: EAST NE
Points: 29486
|
Post Options
Thanks(0)
Quote Reply
Posted: 08 Jan 2012 at 1:38am |
|
what did deere steal patents on now that they have a "new" product line???
|
|
dave63
Orange Level
Joined: 01 Feb 2011
Location: Lineboro Md
Points: 2382
|
Post Options
Thanks(0)
Quote Reply
Posted: 08 Jan 2012 at 7:22am |
Think about it.
50% market share, still!!!
That means that the other 50% market share is all the other manufactors together.
so Deere 25% ? CNH 20 % ? the rest make up 5 % ? I don't know were they are in the market just thinking out loud.
so deere went from 20% to 25% in a highly competative market thats big but they are far from 50%
Edited by dave63 - 08 Jan 2012 at 9:20am
|
|
The universal answer to all questions is yes, how much do you want to spend?
|
|
DennisA (IL)
Orange Level
Joined: 11 Sep 2009
Location: Ridott IL.
Points: 2064
|
Post Options
Thanks(0)
Quote Reply
Posted: 08 Jan 2012 at 9:03pm |
 redline wrote:
Oh good! Something else they can slap a Massey sticker on. |
I really don't understand why all the negativity towards AGCO. I didn't hear many comments 'til AGCO dropped the orange tractors. Allis is gone and it's not coming back. This world is always changing. Would you be happy if John Deere & Case went to orange--or would you complain about that too? How about this, you start your own company and make orange tractors--then you will be happy, right? Too many people worry & complain about things they can't control or just don't matter. Look how many get so mad when their NFL football team doesn't win the game. What does it matter if they win or lose? It really doesn't impact one's life.
|
|
Thanks & God Bless
Dennis
|
|
Dave in il
Orange Level
Joined: 22 Sep 2009
Location: Manville Il
Points: 1748
|
Post Options
Thanks(0)
Quote Reply
Posted: 08 Jan 2012 at 10:13pm |
|
I have no animosity against the Allis Gleaner Company AKA AGCO. The company founded by former Allis Chalmers executives after the failure of Duetz KHD. The company provides me replacement parts for my Allis equipment at least for the time being. I don't like the current management or the direction it has taken the company. I don't like being lied to, "we aren't dropping orange tractors", *We have too many brands in North America" but we're adding Valtra and Fendt. I don't like being insulted. "Allis Chalmers is a lifestyle brand", "Color doesn't matter and AC is dead, pardon me but Massey Ferguson is just as dead, it was on it's last legs when it was purchased by the Allis Gleaner Company. I could go on but I'm preaching to the choir and those like DennisA who don't get it will just tell me I'm a cry baby.
|
|
Byron WC in SW Wi
Orange Level
Joined: 11 Sep 2009
Location: Wisconsin
Points: 1635
|
Post Options
Thanks(0)
Quote Reply
Posted: 09 Jan 2012 at 7:16am |
I fired the guy building my barn in large part because he lied to me. The reason I don't like AGCO is because one of their execs lied to me too right before I bought my AGCO ST. Also, after they dropped orange my AGCO RT lost 20% of it's value. And, as Dave has said, none of their excuses for dropping it has made sense. Also, if you look at their new magazine several times in adds and articles it has made a mockery of dropping orange. A farmer may not be able to match his tie to his pants and shirt but his barns will all be the same color and, if he can help it, so will his farm machinery.
I would love to start my own company and build retro styled AC tractors made in America. I think about doing it almost every week but I doubt it would sell. Most people don't care if it's made in USA or put their money where their mouth is. If you made a up to date 175 it'd probably cost close to $30,000. Everyone on here then would say geese I can buy a 175 all day for $7,500 why would I do that? Same thing happened with the AC mower and same think will probably happen with the Kubota combine. Many people have said if they only made a nice small combine I'd buy one. Well, now Kubota apparently is and we'll see.
|
|
D-allis Iowa
Orange Level
Joined: 05 Oct 2009
Location: Akron, Iowa
Points: 494
|
Post Options
Thanks(0)
Quote Reply
Posted: 09 Jan 2012 at 7:26am |
|
I would pay more for a orange agco than a red one. I will never own a red agco.
|
|
TomYaz
Orange Level
Joined: 14 Sep 2009
Location: PA
Points: 10335
|
Post Options
Thanks(0)
Quote Reply
Posted: 09 Jan 2012 at 7:35am |
|
I would be a lot more accepting of the demise of orange if it werent for the lying and insults.
|
|
If its not an All-Crop, it all crap!
|
|
CTuckerNWIL
Orange Level
Joined: 11 Sep 2009
Location: NW Illinois
Points: 22825
|
Post Options
Thanks(0)
Quote Reply
Posted: 09 Jan 2012 at 7:43am |
|
Byron, You should add this as your signature line. :)
A farmer may not be able to match his tie to his pants and shirt but his
barns will all be the same color and, if he can help it, so will his
farm machinery.
|
|
|
|
AllisFreak MN
Orange Level Access
Joined: 07 Dec 2009
Location: Minnesota
Points: 1586
|
Post Options
Thanks(0)
Quote Reply
Posted: 09 Jan 2012 at 7:18pm |
CTuckerNWIL wrote:
Byron, You should add this as your signature line. :)A farmer may not be able to match his tie to his pants and shirt but his
barns will all be the same color and, if he can help it, so will his
farm machinery.
|
As in Case IH red?
|
|
'49 A-C WD, '51 A-C WD, '63 A-C D17 Series III, 1968 A-C One-Seventy, '82 A-C 6060, '75 A-C 7040, A-C #3 sickle mower, 2 A-C 701 wagons, '78 Gleaner M2
|
|
EPALLIS
Orange Level
Joined: 12 Sep 2009
Location: Illinois
Points: 1154
|
Post Options
Thanks(0)
Quote Reply
Posted: 09 Jan 2012 at 9:24pm |
|
Agreed. It's really about company integrity and business ethics. I spoke with the AGCO exec's and they skated around the truth how they have to have global brands only and when I called them on the carpet about still making a "regional" AGCO Allis tractor in Argentina only, they professed to not know much about that. When that plane went down with the former Allis leaders the end of the Allis-Gleaner company went with them. A tragedy in more ways than one. Oh well, life has to go on and that's where we come in and that is to make the Allis brand live long and prosper under our leadership. Going orange is great!
|
|
m16ty
Orange Level
Joined: 28 Jan 2011
Location: TN
Points: 1476
|
Post Options
Thanks(0)
Quote Reply
Posted: 09 Jan 2012 at 11:11pm |
|
I don't necessarily agree with Dennis but I see where he's coming from. AC died in 1985. You can blame it on KHD. They threw away what was left when they took over. The modern AGCO tractor has nothing in common with the former AC tractors other that color (until recently). I've never owned a AGCO tractor of any color and have no plans to at this time. I'll just keep running the old AC stuff as long as it will hold up. I do appreciate AGCO still supplying me parts.
Fiat's business plan seems like a better way to me. Notice when they bought Ford they kept color and the styling while using their powertrains. Until this day people still think "Ford tractor" when they see a blue New Holland tractor. They kept most of their old Ford customer base.
Also when Case bought IH. They went with red to keep the IH fans happy but went with Case styling to keep the Case people happy. They also incorporated some of the IH engineering into their new models.
AC lost a whole bunch of their old customers when they put "Allis" decals over "Fahr" on the green tractors. Most swapped and never looked back.
|
|
