TAFE comments on Agco’s ‘disappointing’ results

Tractors and Farm Equipment, TAFE, the largest shareholder of AGCO (AGCO) Corporation, issued the following statement regarding AGCO’s recently reported fourth quarter and 2024 full year results. TAFE also disclosed that it has withdrawn its 14a-8 shareholder proposal from the agenda for the 2025 Annual Meeting of Shareholders following AGCO’s ill-conceived efforts to exclude the proposal, reaffirming TAFE’s belief that more substantial action must be taken to enhance the Company’s governance and turn around its struggling operational performance. “AGCO’s revenue and operating margin have trailed peers for more than a decade – even as leadership has poured significant capital into numerous acquisitions. The Company’s recent Analyst Day and financial results have only deepened our concerns regarding AGCO’s strategic direction and the Board’s inadequate oversight of all areas of the business… We believe AGCO is holding onto a niche strategy that does not address structural readiness for downcycles and has proven ineffective over the long-term. We were particularly disappointed to see AGCO once again deliver worse-than-expected dealer inventory levels in the fourth quarter, which we believe demonstrates leadership’s inability to effectively forecast and navigate the industry downturn. AGCO cannot keep kicking the can down the road by attempting to divert shareholders’ attention from these critical issues by promoting 2029 targets without providing a clear path to achieving them. “