World Grain - April 2022 - 68

SUPPLIER NEWS
KSU professors visit Alapala facilities
MANHATTAN, KANSAS, US - Kansas State University
professors visited Alapala's manufacturing plant and its recently
launched Academy and Innovation Center in early January.
KSU participants included Gordon Smith, head of the Grain
Science and Industry Department; Hüseyin Doğan, professor
of practice; and Jason Watt, milling instructor.
During their visit, the KSU team experienced Alapala's
highly automated machine manufacturing technologies, including
laser cutting, robotic bending and welding, and automated
painting systems.
At the Academy and Innovation Center, whose mission is
to provide training opportunities for milling industry professionals
worldwide, the KSU team observed a trial production
and wheat breaking tests. The KSU and Alapala teams had an
opportunity to discuss the technical findings and share information
about the grain milling process.
The KSU team also was able to observe first-hand the
laboratory type roller mills that were produced specially for
Global industry demand fuels AGCO results
DULUTH, GEORGIA, US - AGCO posted net income of
$897 million for 2021, up from $427.1 million in 2020, mostly
due to improved industry demand.
Net sales for the year were up 22% to $11.1 billion.
" AGCO delivered record results in 2021 highlighted by
significantly higher sales and margins compared to 2020, "
said Eric Hansotia, chairman, president and chief executive
officer of AGCO. " Our performance was fueled by improved
global industry demand and focused execution by the AGCO
team, who exceeded sales targets despite considerable supply
chain challenges. "
Hansotia explained that adjusted operating margins reached
9.1% of net sales because of the benefits of sales growth
and pricing that helped to offset substantial inflationary
cost pressures.
" Our smart technology product lines are in strong demand
and are driving productivity improvements for our customers
and growth opportunities for AGCO, " Hansotia said.
" Looking forward to 2022, we expect supply chain pressures
to persist, presenting challenges throughout the year. Our
teams are working tirelessly with our suppliers to mitigate
the impact of these issues to serve our customers as well as
to deliver another strong year of performance. We are forecasting
sales growth and margin expansion in 2022 as industry
demand trends positively and our farmer-first strategy
gains traction. "
Net sales in the North American region increased 21% for
the full year of 2021 compared to 2020. Income from operations
for the full year of 2021 increased approximately $44.4
million compared to 2020. The improvement was the result
of higher sales and production, a richer mix of products and
favorable price realization, all which offset higher material
costs.
68
their teaching needs and will be used in the Grain Science
and Industry Department's Shellenberger laboratory for milling
tests.
AGCO's South American net sales increased 54% for 2021.
Sales increased significantly across all the South American
markets with growth achieved in tractors, combines and planting
equipment as well as replacement parts.
Income from operations for the full year of 2021 increased
by approximately $102.9 million compared to 2020 and operating
margins exceeded 10%.
Net sales in AGCO's Europe/Middle East region increased
13% for 2021. Increased sales of tractors, combines and replacement
parts contributed to growth across all of Europe.
Income from operations increased approximately $170.1
million for the full year of 2021 compared to 2020, due to
higher net sales and production volumes as well as price realization,
which offset higher material costs and engineering
expenses.
Asia/Pacific/Africa net sales increased 22% during the
full year of 2021 compared to 2020. Higher sales in Africa,
Australia and China produced the majority of the increase.
Income from operations improved by approximately $51.8
million for the full year of 2021 compared to 2020 due to
higher sales and an improved product mix.
AGCO's net sales for 2022 are expected to be approximately
$12.3 billion, reflecting improved sales volumes
and pricing partially offset by negative foreign currency
translation.
Gross and operating margins are projected to improve
from 2021 levels, reflecting the impact of higher sales and
production volumes as well as pricing to offset cost inflation.
These improvements are planned to fund increases in
engineering and other technology investments to support
AGCO's precision agriculture and digital initiatives.
Based on these assumptions, 2022 earnings per share are
targeted at approximately $11.50.
April 2022 / World Grain / www.World-Grain.com
http://www.World-Grain.com
World Grain - April 2022

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