In a webcast earnings report at the beginning of May, Agco CEO Eric Hansotia said the company has seen its net profits fall during the first quarter of 2024. Slower sales are a trend all brands have said they expect to see in 2024.
“We focused on reducing production more than the industry decline and further tightened our cost reductions during the quarter to align with slowing end markets,” Hansotia said. “More challenging global market conditions are expected to continue in 2024, due to reduced commodity prices and lower farm income expectations. As a result, Agco is forecasting lower sales in 2024.
“Global industry retail sales of farm equipment in the first quarter of 2024 were lower in all of Agco’s key markets. North American industry retail sales decreased nine per cent in the first three months of 2024 compared to the first three months of 2023. Sales declines in smaller equipment were more significant than in most of the larger categories.”
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The decline in North America is mild compared to Agco’s sales figures in South America, which had been a strong market. Retail tractor sales there decreased 18 per cent. And Agco expects retail sales in that region to further soften through this year.
Although the global sales picture for all brands has softened, Hansotia is optimistic about relatively good demand for new equipment continuing through the year, compared to average annual sales numbers.
“We expect farm income to be down in 2024, relative to 2023 and closer to the long-term averages, but still supportive of industry demand.”
Amazone buys fertilizer spreader maker MP Agro
Speaking of South America, Germany-based implement manufacturer Amazone announced in April it has acquired Brazilian fertilizer spreader manufacturer MP Agro. The sale is still subject to official approval.
Amazone, which builds its own line of dry fertilizer spreaders in Europe, will add the MP Agro spreader products to its offering in South America, expanding Amazone’s global presence.
“We will be relying on the MP Agro team by using both their expertise as well as their closeness to the local market, so that we at Amazon can bring our technology to Brazil,” said Amazone’s owners Christian Dreyer and Justus Dreyer in a press release.
Amazone has not yet said if the MP Agro products will be made available in other markets outside South America.
Ford opens orders for 2024 F-150 Lightning EV
In mid-April, Ford announced it was opening its order book for the 2024 model electric F-150 Lightning — and is reducing the MSRP by $2,000-$5,500, depending on the trim level. The four different trim levels offer 240-, 300- and 320-mile (386-, 483- and 515-km) EPA estimated ranges on a single charge.
Ford has also inked an agreement to allow the F-150s to get charging access at the more than 15,000 charging stations in the Tesla Supercharger Network, significantly expanding the number of available recharging locations across North America.
New features on the 2024 F-150 Lightning include a Vapor Injection Heat Pump System to help optimize energy consumption in heating and cooling modes, especially in cold weather; an updated instrument cluster; additions to the tow package; Pro Power Onboard, which works even when the truck is turned off; and hands-free highway driving.
