This morning, AGCO, reported net sales of approximately $1.7 billion for the third quarter of 2010, an increase of 19.3% compared to the third quarter of 2009. Reported net income was $0.65 per share and adjusted net income, excluding restructuring and other infrequent expenses, was $0.66 per share. These results compare to reported net income of $0.12 per share and adjusted net income, excluding restructuring and other infrequent expenses, of $0.13 per share for the third quarter of 2009. Excluding unfavorable currency translation impacts of approximately 2.7%, net sales in the third quarter of 2010 increased 21.9% compared to the same period in 2009.

Net sales for the first nine months of 2010 were approximately $4.7 billion, an increase of approximately 0.8% compared to the same period in 2009. Excluding the favorable impact of currency translation of approximately 2.2%, net sales for the first nine months of 2010 decreased approximately 1.3% compared to the same period in 2009. For the first nine months of 2010, reported net income was $1.41 per share and adjusted net income, excluding restructuring and other infrequent expenses, was $1.43 per share. These results compare to reported net income of $1.09 per share and adjusted net income, excluding restructuring and other infrequent expenses, of $1.12 per share for the first nine months of 2009.

"AGCO's third quarter performance was marked by sales growth in all four of our geographic regions," stated Martin Richenhagen, Chairman, President and Chief Executive Officer. "Industry demand remained robust in South America, where AGCO outperformed the market and delivered record third quarter sales and operating income. Our focus on cost control and increased global production led to higher margins in the third quarter of 2010 compared to the third quarter of 2009. In particular, these developments supported improved third quarter operating income in AGCO's North America segment compared to the third quarter of 2009."

"At current planned volumes, we also expect to generate improved margins in the fourth quarter of 2010 compared to the fourth quarter of 2009," stated Mr. Richenhagen. "In addition, we will continue our investments in new product development and factory productivity initiatives aimed at expanding our margins and increasing asset returns in the coming years."

Industry conditions remained strong in Brazil and Argentina during the third quarter of 2010, resulting in AGCO's South American region reporting a sales increase of approximately 39.1% compared to the third quarter of 2009, excluding favorable currency translation impacts. AGCO's Europe/Africa/Middle East (EAME) region reported an increase in net sales of approximately 12.1% during the third quarter of 2010 compared to the same period in 2009, excluding unfavorable currency translation impacts. The increase was supported by stabilizing Western European industry conditions in the third quarter of 2010. In the North American region, sales in the third quarter of 2010 increased approximately 26.5% compared to the third quarter of 2009, excluding favorable currency translation impacts. Increased sales of combines, tractors and sprayers contributed to higher sales in the North American region.

Income from operations for the third quarter of 2010 grew to $75.9 million, an increase of approximately 112.6% compared to the third quarter of 2009. Gross margins were 18.3% in the third quarter of 2010 compared to 17.5% in the third quarter of 2009. The margin improvement was driven by material cost control and higher production. Income from operations for the first nine months of 2010 increased approximately $10.9 million compared to the same period in 2009 primarily due to improved margins partially offset by higher engineering expenses to support new product development and tier 4 engine emission upgrades.