AGCO Corporation (NYSE:AGCO) Q4 2022 Earnings Call Transcript

Eric Hansotia: Well, I will just close today by saying thank you very much for your participation and your support of AGCO. We are really, really proud of what we have accomplished in 2022. It was a record year in many, many ways. If you peel back the onion, you will see that the key success areas are right at the core of the strategy that we shared with you in December, and the origin of it was back in 2021. Our focus is on growing our margin-rich businesses like Fendt, parts and service and our precision ag smart machine business. We have also committed to you to improve some of our other businesses like Massey Ferguson and our grain and protein business. In €˜23, you will see the results come through in all of those, whether they are improvement businesses or our growth businesses.

We have been investing heavily in the last few years. And in €˜23, we are making even bigger investments to continue the development of these farmer-focused solutions that are solving critical farmer problems with €“ many of them with very short paybacks. Yes, we target essentially 1 year, 2 years max. we are seeing take rates that are very high and the margins are very high. We are also seeing our innovations receive strong recognition in the form of industry awards. Most recently, the 10 Innovation Awards at AE50 that I mentioned earlier in my comments. We are using our precision ag tools to really engage strongly on sustainability, putting more and more of our technology efforts there, capturing a lot more data, helping our farmers make the transition to not only more productive farming, but more sustainable farming.

Lastly, the large ag markets are very strong globally. Farm fundamentals are healthy and supporting farmers’ investments. So, we are excited about 2023 and beyond. We are convinced that the best days of AGCO are still in front of us. Thank you for your partnership all along the journey. I appreciate the call today.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.