DULUTH, Ga. -- AGCO Corporation, a worldwide manufacturer and distributor of agricultural equipment, reported a net loss of $0.71 per share for the fourth quarter of 2005.



Adjusted net income, which excludes restructuring and other infrequent expenses and a non-cash deferred income tax adjustment, was $0.30 per share for the fourth quarter of 2005. These results compare to reported net income of $0.52 per share and adjusted net income of $0.52 per share for the fourth quarter of 2004.



Net sales for the fourth quarter of 2005 were $1.4 billion, a decrease of approximately 10 percent compared to the same period in 2004.



For the full year, reported net income was $0.36 per share in 2005 compared to $1.71 per share in 2004. Adjusted net income, which excludes restructuring and other infrequent expenses, costs associated with a June 2005 bond redemption and a non-cash deferred income tax adjustment, was $1.46 per share for the full year of 2005, compared to adjusted net income, excluding restructuring and other infrequent expenses, of $1.75 per share in 2004. Net sales for the full year of 2005 increased approximately 3 percent to $5.4 billion.



"Our focus in the fourth quarter was on generating cash and reducing inventory levels," said Martin Richenhagen, AGCO president and CEO. "Production levels in the fourth quarter of 2005 were approximately 30 percent lower than the prior year, which allowed us to significantly reduce inventories from third quarter levels. Margin pressures from lower production and other factors along with softer market conditions in Western Europe and South America negatively impacted our fourth quarter operating results. The significant decline in industry demand in South America was the principal cause of our operating income shortfall in 2005.



"Although market conditions remain challenging, we believe we are gaining momentum in our key markets," Richenhagen said. "Our retail sales performance in 2005 was a positive sign that our products and core brands are gaining acceptance worldwide.



"For 2006, our goals are to improve margins and asset returns through the achievement of our cost reduction and inventory management initiatives. In addition, we have a significant range of new products which will be introduced throughout the year that we believe will further enhance our competitive position in a variety of market segments."



AGCO Corporation, headquartered in Duluth, Ga., is a global manufacturer and distributor of agricultural equipment and related replacement parts. AGCO products are distributed in more than 140 countries. AGCO offers a full product line including tractors, combines, hay tools, sprayers, forage, tillage equipment and implements through more than 3,900 independent dealers and distributors around the world. In 2005, AGCO had net sales of $5.4 billion.



SOURCE: AGCO Corporation via Business Wire.