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The Duluth, Ga.-based agricultural equipment company posted net incomedof $34.3 million and earnings of 36 cents a compared with net income of $58.8 million and earningxs of 59 cents a share. First-quarter sales were down 11 percenfto $1.6 billion. “Demand for agricultural equipment is weakeninf in all the major world markets as the globap economic turmoil and constrained credit markets begin to impacrtour industry,” said Martin Richenhagen, AGCO president and CEO, in an earnings statement.
“Ij the first quarter, the credit-challenged markets of Eastern Europw and Russia experiencedsignificant declines, while industry demanr continues to erode in South America wher e dry weather conditions and credit availabilituy are factors. Despite the disruption in the generak economy, farm fundamentals remain strong, and we continue to be optimistixabout long-term world grain demand and the futur growth prospects for our company.” Richenhagen said AGCO (NYSE: AG) is cuttingy costs, reducing production and trimming its investment in workin capital.
The largest impacts from production cuts and working capitak reduction initiatives are expected to be incurred in thesecond
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