Jackson, MN (northwestiowanow.com) — AGCO Corporation released 3rd quarter financial results Tuesday. CEO Eric Hansotia says worldwide sales were down 25 percent to 2.6 billion, and net revenue was down 73 percent to 114.8 million dollars. He says a “significant contraction” in sales is due to a “cyclical downturn” in farm income. He said the company will be aggressive is lowering inventory through additional cuts in production to the ones announced earlier this year.

Tractor sales were down 11 percent in North America during the quarter, down 6 percent in Europe, and down 9 percent in South America. Combine sales were down 19 percent in North America, 35 percent in Europe, and 34 percent in South America.

Hansotia hosted an earnings call with investors Tuesday where he repeated that he believes AGCO’s three major growth areas will be expanding the Fendt product line and dealer network, the PTX Trimble line of precision equipment, and the worldwide parts division. The company completed its divestiture of its Grain and Protein division November 1st.

Hansotia says the Fendt dealership network is growing and now covers 80 percent of the United States.

AGCO’s Jackson Minnesota plant assembles all of its brands track tractors and track combine chassis, and recently was named the North American headquarters for its Fendt brand – which is the company’s priority.