Something to make the AGCO haters happy

Here is an article that should bring a grin to some of your faces. Note there is nothing in the article that says the sky is falling for AGCO; the credit rating continues to rise and the debt ratio is lower than others. But I still thought some people on here would enjoy this.

That's kind of a strong title there steffensen.  Do I hear a bit of resentment at your boss for only making 2 million this year? 

I was thinking the other day of a comment he made on some business show about having a lot of temporary employees so they can lay them off easily and save money.  I thought that man doesn't care about tractors, tractor owners or even his own employees.  All he is in for is stock price and your article shows why.   He makes  a lot more money when the stocks do well.

I don't hate AGCO products just have trouble with being lied to by upper management and of course them dropping orange.  Sure wish I could get a Hesston centerline baler but can't do it.  I'm thinking of becoming a New Holland man.  I go between that and just going old AC and trying not to get parts from AGCO.  What do you think?

AGCO was up $1.02 today to $35.82.  Somehow, it seems to me that the decision to drop orange will not help the bottom line, as sales and profit were down last year.  Any estimates of how things will go this fiscal year?
Byron, I understand you being upset with AGCO but Hesston balers are great machines and will last a lot longer then the current AGCO commandant.

I was laughing the whole time I was typing the title. I thought it might be a little strong, but it was about as strong as the subject line that first got me on the site. I don't have resentment for the salary he makes. I am a little glad its still based on some kind of performance. There are a lot of CEOs out there that still get their full bonus packages no matter what happens. Last year the market was down for everyone, and maybe there was a loss in tractor sales becuase of the announcement and that added to AGCOs loss. If thats true the choice affected the top salaries the way it should. I read that tractor sales were down, but combine sales were up for 2009. So I don't think we can go by last years numbers just yet for determining if the announcement has an effect. The last I heard for estimates is that the year is still looking good but I think we have to wait until 4th quarter to really see the data. Time will tell... 

Oh yeah, your question... I think you should be the best product you can get for the money you want to spend. If that includes the Hesston product, that's okay. And if it leads you to New Holland, again that's okay. The product you buy and the support you get has to be worth the money. I can understand your resentment towards AGCO management, and believe that your business must be earned.

And to be a little technical, the yellow color is not CAT yellow. That was not part of the purchase, and CAT still owns those rights. The color is actually called challenger yellow and is a slighly different shade of yellow. But I also do not know what it takes to be a professional... 

Edited by steffensen - 24 Mar 2010 at 6:20am

Byron WC in SW Wi wrote: I never caught that before.  So, the Challenger name is owned by Caterpillar and AGCO pays them a license fee to put it on some of their tractors?  Man, I don't get that.  One of your core brand names you don't even own.

So who own the bag on the orphan equipment if AGCO goes belly up or decides not to do it anymore?  I can't see how that's a win for CAT at all or the farmer who buys that equipment. 


Edited by Byron WC in SW Wi - 24 Mar 2010 at 4:34pm

CAT still wants to be in the ag business and has a vested interest in AGCO succeeding, it wouldn't surprise me at all if AGCO is taking some cues from the CAT business model and in the end CAT could be the savior for AGCO when and if it ever came to pass that someone with deeper pockets needed to step in. CAT just laughs at the ag guys when it come to sales and profitability, as far as business goes they know what they are doing.

Norm, for those of us who arn't as versed in these things, care to explain? 

Norm, maybe you could enlighten the rest of us on what in the heck you are talking about? And why all the capital letters and question marks?

I agree completely.  Doesn't the justification of wall street bonuses seem a little NUTS!  They figure they have to do it to keep talent?????

Makes me wanna look for equipment that comes from family owned companies now.  I don't trust wall street and I don't trust the companies that are out to please them with the bail out and now AGCO. 

With my compliments Fred.

Just an FYI, AGCO's YTD sales have TANNKED (in NA)! YTD, the overall industry is up. AEM numbers confirm this. How's the dictators version of "hope and change" working out at AGCO? Ironic parallel to another "hope and change", seems like they are from the same mold. Wonder how soon they will figure out they miss Orange?

Here you go, focused on 4WD, Over 100HP Row Crop and combines (Farm Segment). All up YTD.

 

http://www.mymachinery.com/Article.aspx?ID=156438

steffensen wrote: How can you make the claim that the overall industry is up? Your own data says: "Year-to-date sales are down for all segments, except four-wheel drive tractor sales and combine sales." The data is also still showing an industry wide drop over 2009 on wheeled tractors. (-1.2%)  Doesn't sound like overall industry to me... You can't find the AGCO numbers for year to date yet. Q1 is not finished so there will be nothing officially reported yet. The only thing you have is Q4 of 2009 or all of 2009, and that can't be compared to 2010 data presented and mean anything. When the official Q1 reports are out with the sales reports then we will have something.

I am not concerned with under 100HP, they are "sundowners" and landscape contractors for the most part - not really in farming business. When they are subtracted, all segments of the "true" farm segment are up -  a fair bit. No manufacturer will tell you their specific numbers, but it is a known fact that AGCO's internal numbers since the first of year have TAANNKED!