AGCO Corp at Jefferies Industrials Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Chirag Patel - Jefferies LLC - Analyst : I think we're just going to jump right into the Q&A. And I think the first thing on my mind, at least, is a very simple question. Where are we in the cycle?

Question: Chirag Patel - Jefferies LLC - Analyst : Got you. And as we talk about the market itself being down in the 10% to 15% range overall, I guess the next thing is the idea of how much is your production down? And what dynamics influence the idea of making that decision of lower production than natural retail sales?

Question: Chirag Patel - Jefferies LLC - Analyst : Understood. Understood. And I guess one of the things that I'm interested to know also is that the pricing dynamic currently had a nice big inflationary time period. I think investors are a little fearful of the idea of a big deflationary standpoint. We haven't seen that in capital goods historically, but can we talk a little bit about that and what you're seeing in the market, what your expectations are around that?

Question: Chirag Patel - Jefferies LLC - Analyst : Understood. Is there any sort of competitive pressures on pricing from products, anything like that happening in the industry that we should be mindful of?

Question: Chirag Patel - Jefferies LLC - Analyst : Got you. And I wanted to pull on that a little bit and just the idea of Fendt and the penetration that you've kind of seen, even in a softer market dynamic, what's been the uptake from farmers on the Fendt brand? And how do we progress in market share currently versus?

Question: Chirag Patel - Jefferies LLC - Analyst : Understood. And on that farmer core idea, what's kind of the trajectory for rolling that across? I'm sure that there's infrastructure that needs to be built out for that from the dealer standpoint. Can we talk a little bit about that dynamic? What investments are you making? What investments you ask the dealers to make with you? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 12:05PM, AGCO.N - AGCO Corp at Jefferies Industrials Conference

Question: Chirag Patel - Jefferies LLC - Analyst : Got you. Got you. And then we touched on the cycles to start with. And the idea of seeing a double-digit decline in two years in a row is probably something that doesn't historically take place. Can we talk about prior cycles? What were some of the dynamics that -- we saw a lot more volume in prior cycles than we've seen this cycle, it feels, like where we may have had a lot of price didn't have a lot of volume out there. So can we just talk a little bit about where we're kind of stepping into the two cycle periods?

Question: Chirag Patel - Jefferies LLC - Analyst : Understood. And I think on that -- on the point of adding technology and things of that nature, like just can we talk a little bit more about the precision ag business for you guys, what you're seeing currently? Is there an early order program for some of that stuff and how is that kind of shaping up if at all there is?

Question: Chirag Patel - Jefferies LLC - Analyst : Got you. And then, I guess, when the acquisition of PTx Trimble come on board, we had a set of goal of about $2 billion in Precision Ag sales by 2028. With the depressed market and whatever, where do we stand on that target? How should we be thinking about it linearly? Is there a scope to that or --?

Question: Chirag Patel - Jefferies LLC - Analyst : Excellent. And I guess thinking here from this farmer standpoint, their largest cost to operate the farm besides the actual land leases and things of that nature are going to be fertilizers, herbicides, things of that nature. Machine and actual equipment tends to be what percentage of the overall? 10% to 15%? And then so at the end of the day, if you're able to reduce the cost or the amount of applications that you do on the fertilizer, herbicide, what can that look like for the farmer from a profitability standpoint? How much can your technologies reduce that cost for them? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 12:05PM, AGCO.N - AGCO Corp at Jefferies Industrials Conference

Question: Chirag Patel - Jefferies LLC - Analyst : Got you. And with a little over five minutes, if there's questions from the audience. Unidentified Participant (inaudible) One, could you remind -- now I always think of year-end as a big retail selling season for farmers. Could you remind us what percent of your sales are like November-December year-end period? And then secondly, could you just comment -- you talked about the new inventory. Could you talk about used inventory and used pricing in the last several months? Thanks.

Question: Chirag Patel - Jefferies LLC - Analyst : With that, we will keep you guys on schedule, hopefully. And to the next one. Damon, Greg, thank you so much.