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AGCO: More Topline Weakness, Great Cost Control, Long-Term Appeal Remains

Shares of AGCO (AGCO), named after the simple aggregation of agricultural company, found some support following its earnings release. This has been an exception after shares have seen a real difficult year. Shares of the European-focused agricultural equipment manufacturer jumped some 10% in response to the earnings release.

Agco sees another year of falling earnings and revenues in 2015. That said cost control is impressive. If margins can recover to their normal levels following more normal soft commodity prices and harvests, shares have a great deal of upside. This follows the fact that the company is aggressive in its restructuring efforts, creating a very lean business.

Soft End To A Soft Year

Agco reported a 13.1% plunge in sales which came in at $2.49 billion. Clearly this does not look very good although it should be stressed that the dollar strength resulted in currency headwinds of 7.0%. Adjusting for this,… Read More …