Solid market positions in Europe and South America; Product-line breadth and geographic diversity; Low level of vertical integration and highly variable cost structure; and Extensive dealer network. Volatile industry, tied to agricultural commodity price which can vary considerably; Highly competitive industry conditions; and Aggressive financial profile. The ratings on Duluth, Ga.-based AGCO Corp. reflect the company's satisfactory competitive business position as the world's third-largest agricultural equipment manufacturer, with annual sales of $5.9 billion. The company's aggressive financial profile made it vulnerable during the latest prolonged cyclical downturn, but amid the market recovery of the past several years, AGCO's credit measures are in line with the ratings on the company. Although agricultural equipment markets have traditionally been quite cyclical, geographic diversity...
Companies mentioned in this report are: AGCO Corp.
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