![Earnings call: AGCO reports record sales and braces for challenging 2024](https://i-invdn-com.investing.com/news/LYNXNPEB8506G_L.jpg)
© Reuters.
AGCO Corporation (AGCO) has introduced document web gross sales of $14.4 billion for 2023, marking an almost 14% improve from the earlier 12 months. However, the corporate anticipates tougher market circumstances in 2024, anticipating diminished commodity costs and decrease farmer revenue to influence gross sales negatively.
Despite this, AGCO is dedicated to increasing its high-margin companies, together with Precision Ag, and expects to shut a three way partnership with Trimble within the first half of 2024. The firm forecasts decrease working margins and a decline in demand throughout all areas for the upcoming 12 months.
Key Takeaways
- AGCO reached a document $14.4 billion in web gross sales for 2023, up practically 14%.
- The firm predicts more durable market circumstances in 2024, with diminished commodity costs and farmer incomes.
- AGCO goals to develop its Precision Ag enterprise and globalize Fendt merchandise.
- A three way partnership with Trimble in Precision Ag is pending, anticipated to shut within the first half of 2024.
- The firm is conducting a strategic assessment of its Grain & Protein enterprise, with a choice anticipated by mid-2024.
Company Outlook
- AGCO forecasts a lower in gross sales for 2024 as a consequence of difficult market circumstances.
- The firm’s full-year web gross sales outlook for 2024 is $13.6 billion, with earnings per share forecasted at roughly $13.15.
- AGCO plans to put money into know-how and good farming options to assist its Farmer-First technique.
- The firm anticipates a ten% lower in demand for North America, with comparable declines in Western Europe and South America.
Bearish Highlights
- AGCO’s fourth-quarter web gross sales declined in South America as a consequence of pricing strain and decrease gross sales volumes.
- Precision Ag enterprise income fell in need of the $800 million to $850 million goal, recording $750 million in 2023.
- Cash movement for the 12 months was $585 million, beneath the goal as a consequence of timing and weaker leads to South America.
Bullish Highlights
- AGCO reported the best gross sales in its historical past for its three development levers: globalization of Fendt, accelerating the worldwide components enterprise, and rising Precision Ag.
- The firm launched new merchandise on the Precision Planting Winter Conference and opened a brand new facility in Morton, Illinois.
- AGCO gained a number of awards for innovation and engineering excellence.
Misses
- Precision Ag income for 2023 was $750 million, lacking the goal vary of $800 million to $850 million.
- Cash movement for 2023 was $585 million, falling in need of the 75% to 100% of web revenue goal.
Q&A Highlights
- AGCO is optimistic concerning the long-term prospects of the South American market.
- The firm is specializing in direct returns to traders, together with elevated dividends and share repurchases.
- AGCO expects to decide on the strategic assessment of its Grain & Protein enterprise in mid-2024.
AGCO Corporation, an agricultural tools producer, has delivered a record-setting efficiency in 2023 whereas getting ready for a tougher 2024. The firm’s strategic deal with high-margin companies and revolutionary know-how, together with its three way partnership with Trimble, positions it to navigate the anticipated downturn in market circumstances. AGCO’s long-term outlook stays constructive, pushed by its dedication to effectivity, price administration, and market share positive aspects.
InvestingPro Insights
AGCO Corporation’s dedication to increasing high-margin companies and its document web gross sales of $14.4 billion in 2023 replicate an organization that’s strategically positioning itself for the longer term. The InvestingPro information underscores this angle with key metrics: AGCO’s P/E Ratio stands at a beautiful 7.95, indicating that the corporate is buying and selling at a low earnings a number of, which could possibly be interesting to worth traders. The firm’s strong Revenue Growth over the past twelve months as of Q3 2023 is 21.86%, showcasing its potential to extend gross sales considerably. Additionally, AGCO has maintained a robust Dividend Yield of 5.04%, signaling a dedication to returning worth to shareholders.
InvestingPro Tips spotlight AGCO’s monetary stability and investor enchantment. The firm has raised its dividend for 11 consecutive years, reinforcing its reliability in offering shareholder returns. Moreover, AGCO operates with a average degree of debt and has money flows that may sufficiently cowl curiosity funds, which is reassuring for traders involved about monetary well being and danger.
For readers seeking to delve deeper into AGCO’s financials and achieve entry to extra insights, InvestingPro affords extra ideas. There are 12 extra InvestingPro Tips out there, together with the corporate’s standing as a distinguished participant within the Machinery {industry} and predictions on profitability for the 12 months. To discover these additional, readers can go to https://www.investing.com/pro/AGCO and use coupon code “SFY24” to get a further 10% off a 2-year InvestingPro+ subscription, or “SFY241” to get a further 10% off a 1-year InvestingPro+ subscription.
Full transcript – Agco (NYSE:) This fall 2023:
Operator: Good morning and welcome to the AGCO’s Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please notice, this occasion is being recorded. And now I want to flip the convention over to Greg Peterson, Head of Investor Relations. Please, Greg, go forward.
Greg Peterson: Thanks and good morning. Welcome to these of you becoming a member of us for AGCO’s fourth quarter 2023 earnings name. We will seek advice from a slide presentation this morning that is posted on our web site at www.agcocorp.com. The non-GAAP measures used within the slide presentation are reconciled to GAAP metrics within the appendix of that presentation. We’ll additionally make forward-looking statements this morning, together with statements about our strategic plans and initiatives in addition to our monetary impacts. We’ll talk about demand, product improvement and capital expenditure plans and timing of these plans and our expectations with respect to the prices and advantages of these plans and timing of these advantages. We’ll additionally talk about future income, crop manufacturing and farm revenue, manufacturing ranges, worth ranges, margins, earnings, money movement and different monetary metrics. All of those are topic to dangers that might trigger precise outcomes to vary materially from these prompt by the statements. These dangers embrace however usually are not restricted to, antagonistic developments within the agricultural {industry}, provide chain disruption, inflation, climate, commodity costs, adjustments in product demand, interruptions in provide of components and merchandise, the potential failure to develop new and improved merchandise on time, together with premium know-how and good farming options inside funds and with the anticipated efficiency and worth advantages, difficulties in integrating the Trimble Ag enterprise in a fashion that produces the anticipated monetary outcomes, reactions by clients and opponents to the transaction, together with the speed at which Trimble Ag’s largest OEM buyer reduces purchases of Trimble Ag tools and the speed of alternative by the three way partnership of these gross sales, introduction of recent or improved merchandise by our opponents and reductions in pricing by them, the conflict within the Ukraine, difficulties in integrating acquired companies and in finishing enlargement and modernization plans on time and in a fashion that produces the anticipated monetary outcomes and antagonistic adjustments within the monetary and overseas change markets. Actual outcomes may differ materially from these prompt in these statements. Further data regarding these and different dangers is included in AGCO’s filings with the Securities and Exchange Commission, together with its Form 10-Okay for the 12 months ended December 31, 2022 and subsequent Form 10-Q filings. AGCO disclaims any obligation to replace any forward-looking statements, besides as required by legislation. We will make a replay of this name out there on our company web site later at present. On the decision with me this morning is Eric Hansotia, our Chairman, President and Chief Executive Officer; and Damon Audia, our Senior Vice President and Chief Financial Officer. With that, Eric, please go forward.
Eric Hansotia: Thanks, Greg and good morning. I’d like to begin by taking a second to thank the AGCO group all over the world for his or her super work in 2023. AGCO’s document outcomes are an end result of the group’s laser deal with executing our Farmer-First technique, the place we purpose to offer the farmer an distinctive buyer expertise. AGCO completed 2023 with document full 12 months web gross sales of $14.4 billion which was up practically 14% from final 12 months, as a consequence of robust pricing in addition to outperforming a world market that was really down in 2023. Record working margins reached 11.8% of web gross sales on a reported foundation and 12% on an adjusted foundation. As spectacular as these margins are, I believe it is much more spectacular to acknowledge that 2022 adjusted working margins had been simply over 10% which was a significant milestone for us at the moment and one other information level reinforcing the power of our technique. We delivered these document outcomes, whereas additionally rising our know-how improvement efforts with engineering bills up over 20% in 2023 in comparison with 2022. Over the final 3 years, our R&D spend is up over 60%. Those investments are producing an elevated know-how patent group for AGCO, award-winning merchandise for our farmer clients and document monetary outcomes for our shareholders. Turning particularly to the fourth quarter. Our outcomes replicate the power of our elevated international diversification. Strong efficiency in Europe and North America helped mitigate typically slowing market demand, significantly in South America area. AGCO’s web gross sales had been down 2.5% and working margins had been down 160 foundation factors year-over-year. Significantly elevated aggressive retail exercise in Brazil with a speedy deceleration of demand within the quarter in addition to important retail incentives put strain on our outcomes. Damon will contact on aggressive setting in Brazil in additional element. More difficult international market circumstances are anticipated in 2024 as a consequence of diminished commodity costs and modestly decrease farmer revenue expectations. As a end result, AGCO is forecasting decrease gross sales in 2024. We stay centered on rising our Precision Ag enterprise, globalizing our full line of Fendt branded merchandise and increasing our components and repair enterprise to mitigate among the softening {industry} demand. We’ve additionally sharpened our deal with manufacturing cost-reduction alternatives, SG&A expense efficiencies and decreasing firm and vendor stock. As a results of this focus, coupled with the structural adjustments we’ve got made to our enterprise, we count on that our working margins shall be extra resilient than in previous cycles. In reality, our outlook of 11% working margin for 2024 can be considerably greater versus the final time we skilled these projected {industry} ranges in 2019 and 2020. Finally, we are going to proceed our investments in premium know-how, good farming options and enhanced digital capabilities to assist our Farmer-First technique, whereas serving to to sustainably feed the world. Slide 4 particulars {industry} unit retail gross sales by area for full 12 months 2023. Farm revenue was down modestly throughout the key areas in 2023 and one other modest decline is projected for 2024. Much of the {industry} fleet has been refreshed over these final 3 years and vendor inventories have been restocked. Full 12 months international {industry} retail gross sales of farm tools in 2023 had been decrease in AGCO’s key markets. North America full 12 months {industry} retail gross sales declined roughly 3% in comparison with the earlier 12 months. Lower gross sales of smaller tools, extra carefully tied to the overall financial system, had been partially offset by robust development of high-horsepower tractors and combines. Lower projected farm revenue and a refreshed fleet is anticipated to strain {industry} demand in 2024, leading to weaker North America {industry} gross sales in comparison with 2023. Industry retail tractor gross sales in Western Europe decreased 4% for the complete 12 months of 2023 in comparison with the excessive ranges in 2022. Further declines in {industry} demand are anticipated in 2024 as decrease revenue ranges pressured demand from arable farmers, whereas wholesome demand from dairy and livestock producers is anticipated to dampen among the decline. South American {industry} retail tractor gross sales decreased 8% throughout 2023 which is a steep drop from our 2% to three% decline that we had anticipated. Retail demand in Brazil was negatively affected by funding shortfalls of the federal government sponsored mortgage program, particularly for smaller tools. In addition, antagonistic climate circumstances in sure components of Brazil and decrease commodity costs, particularly soybeans, additional constrained retail demand within the quarter. Following 3 robust years, retail demand in South America is anticipated to additional soften in 2024 because of decrease commodity costs and farm revenue. The mix {industry} was up modestly in North America and Western Europe in 2023 versus 2022 due primarily to bettering provide chains. Combines in South America declined 17% in 2023 in comparison with the prior 12 months. Although market circumstances proceed to melt from the extraordinarily robust circumstances over the past couple of years, we stay constructive concerning the underlying ag fundamentals, supporting long-term {industry} development. Stocks-to-use ranges are greater than latest lows however they continue to be supportive of worthwhile commodity costs versus historic ranges. As the demand for clear power grows, the necessity for options like sustainable aviation gas and vegetable oil-based diesel will develop strongly, driving demand for our farmers that may additional assist commodity costs. When you take a look at simply renewable diesel, we’re seeing that within the U.S. by 2025, renewable diesel demand may develop to devour about 40% of the present U.S. soybean crop. That’s similar to what has occurred with ethanol consumption of the corn acres. So there is a massive demand development driver proper on the horizon right here. Also enter prices akin to gas and fertilizer are down from their peaks in 2022. We count on farm revenue to be down modestly in 2024 relative to 2023 however above long-term averages and nonetheless extremely supportive of {industry} demand. AGCO’s 2023 manufacturing facility manufacturing hours are proven on Slide 5. Our manufacturing decreased within the fourth quarter by roughly 10% versus 2022. Recall that 2022’s fourth quarter manufacturing was exceptionally excessive as we had been recovering from the cyberattack and replicate the actions taken in the course of the quarter to higher align manufacturing with the present demand outlook. Even with this transformation, the complete 12 months manufacturing was up 4% versus 2022. Looking to 2024, we’re aggressively managing our firm and vendor stock to match the softening retail demand. Our vendor stock ranges are at or above focused ranges, so some reductions shall be required in 2024. Currently, we’re anticipating round 10% decrease manufacturing in 2024 versus 2023. This discount displays our 2024 market forecasts, market share development assumptions in addition to focused reductions to vendor stock. As of the top of December 2023, demand for our merchandise remained robust. In Europe, tractors had between 5 and 6 months of order protection. Now that is roughly 40% beneath December 2022 ranges however nonetheless roughly double our historic common. Dealer inventories are barely above our goal degree of 4 months within the area, with sure merchandise like Fendt high-horsepower tractors nonetheless beneath the optimum ranges in sure areas. In South America, we’ve got order protection via March of 2024, the place we proceed to restrict our orders to round 1 quarter upfront. With the aggressive worth strain within the area, significantly in quarter 4 2023, we now have greater vendor inventories than desired which is slowing AGCO’s gross sales into the vendor channel. We have simply over 4 months of vendor stock on tractors and 6.5 months of vendor stock of combines, whereas our goal degree is round 3 months. In response, we’ve got diminished manufacturing within the area and plan to proceed managing manufacturing ranges to match demand. In North America, our orders for observe tractors, planters and utility tools are totally booked for all of mannequin 12 months 2024. That takes us to across the mid- to late summer season interval. We have returned to a steady order score program on all different tractors as vendor channels have begun to stabilize. We presently have roughly 5 months of order protection for each massive and small ag and 6 months of provide within the vendor stock within the area. Our goal for vendor stock stays 4 months on massive ag and 6 months on small ag. Moving to Slide 6, the place you will notice our 3 high-margin development levers geared toward bettering our mid-cycle working margins to 12% and outgrowing the {industry} by 4% to five% yearly. To reiterate, these 3 development levers are the globalization and full line product rollout of our Fendt model, specializing in accelerating our international components enterprise and rising the market share of real AGCO components. And the third is rising our Precision Ag enterprise which helps not solely factory-fit know-how but in addition considerably focuses on combined fleet retrofit options for farmers and OEMs. 2023 marked an essential milestone for every of those 3 development levers. All 3 of them respectively recorded the best gross sales within the firm’s historical past. In addition, we additionally introduced the biggest ag tech deal in our {industry} with a transformative three way partnership with Trimble which can additional efforts in Precision Ag. The Trimble Ag three way partnership remains to be pending regulatory approval and we hope to shut the transaction within the first half of 2024. Slide 7 recaps the 2024 Precision Planting Winter Conference which is the twenty third consecutive 12 months of the convention and is totally certainly one of my favourite occasions of the 12 months. This 12 months, the group introduced some unimaginable new merchandise to assist ship improved farmer productiveness. We are happy that a few of you had been capable of be a part of us for this premier occasion. The convention introduced collectively over 5,600 farmers throughout 21 places within the U.S. and Canada however farmers are from all all over the world. We demonstrated customizable retrofit options for the operational challenges farmer face day by day. The theme this 12 months was options for each season, illustrating to our farmers that Precision Planting has efficiently expanded throughout the crop cycle and past simply the industry-leading planters into merchandise and applied sciences that span the crop cycle. This 12 months, we launched the CornerStone Planting System which is an entire row unit outfitted with the most recent Precision Planting know-how. Over half the worth of a planter is within the metal and chassis parts that do not essentially put on out. CornerStone permits farmers to have essentially the most superior planter at a lower cost level than a brand new OEM planter, whereas providing the texture of an OEM end and integration. This is an amazing alternative for farmers to drive elevated productiveness as we estimate that round 50% of farmers within the U.S. will doubtless by no means purchase a brand new planter. We additionally launched Clarity which is an answer for small grains that gives high-definition element at a row-by-row degree, exhibits variation in discount in movement via the air seeder or drill and shows that data on a Precision Planting 2020 Monitor, so the data is true on the farmer’s fingertips. Our Symphony Vision system shall be commercialized later in 2024 and is our retrofit focused spraying resolution. Symphony Vision helps farmers considerably cut back herbicide utilized to a discipline by spot spraying solely the weeds quite than masking the complete discipline. Not solely does this save on price for the farmer however the environmental profit from the diminished chemical utilization can also be important. Finally, a few of you toured our new 510,000 sq. foot facility in Morton, Illinois, the place we have consolidated a number of websites into one fashionable facility. This enlargement will place us effectively for the longer term as we glance to develop this high-margin enterprise and be the perfect accomplice to our Precision Planting vendor community. This vendor community offers AGCO a aggressive benefit with regards to on-farm experience and gives clients with a brand-agnostic retrofit options, considerably rising our complete addressable market. I’m pleased with what our group was capable of accomplish as we closed out 2023 and Slide 8 lists among the main highlights. As I touched on earlier, we have raised our R&D spending by over 60% since I grew to become CEO in 2021. We’re seeing the outcomes of elevated spend within the variety of awards the place we proceed to win annually. We took on 6 AE50 Awards in 2023 alone and our manufacturers have earned 24 AE50 awards over the past 3 years. We additionally gained 6 awards at Agritechnica Farm Show, the biggest ag commerce honest on the planet. These excellent achievements assist solidify our place as an {industry} chief in innovation and engineering excellence that advances farmers’ capabilities, improves their operations and helps them feed the world. Our know-how stack took an enormous leap ahead in late 2023 with a number of essential developments. We introduced the pending three way partnership with Trimble Ag which can make AGCO a pacesetter in brand-agnostic retrofit options. We opened our Scottsdale Acceleration Center to draw expertise within the areas of autonomy, precision ag, synthetic intelligence and digital merchandise. And we introduced the acquisition of digital property from FarmInfo, a device that may assist farmers enhance productiveness and effectivity by higher managing farm information. We launched AGCO Ventures which formalizes our strategy to sourcing and funding new and early-stage applied sciences to ship on the corporate’s strategic priorities. This permits us to drive innovation by investing in start-up firms, enterprise funds, incubators, accelerators, greater training and analysis establishments. We are additionally making daring strikes with our distribution mannequin. Just final week, we launched FarmerCore, AGCO’s international initiative to revolutionize gross sales and repair distribution by combining digital and bodily components to serve farmers how and the place they need to be served, on-site and on-line. FarmerCore is constructed on 3 pillars: the on-farm mindset; good community protection; and digital engagement. The on-farm mindset positions sellers to satisfy their clients’ wants at each stage of the possession journey. Mobile gross sales assist gives on-farm comfort, whereas a distributed group of extremely expert technicians with cell service automobiles save farmers’ money and time by sustaining and repairing tools on website. Smart community protection contains mild shops, service facilities and parts-only places. By matching the retail outlet kind to the market, sellers can maximize ROI on bodily places, whereas optimizing service protection and rising operational efficiencies. We strongly imagine FarmerCore will assist rework our {industry} and actually put farmers on the heart of what we do. With all of those thrilling developments, the longer term is vibrant at AGCO. There’s by no means been a extra thrilling time to be within the ag enterprise and our investments will proceed to drive revolutionary options which might be centered on serving to enhance farmers’ productiveness. With that, I’ll hand it over to Damon.
Damon Audia: Thank you, Eric and good morning, everybody. Before I cowl the monetary outcomes, I needed to take a second to replicate upon the continued success of our Farmer-First technique. Slide 9 is an replace to the value-creation slide that I introduced at our December 2022 Investor Day. The slide does a pleasant job of illustrating the progress AGCO has made with our working margins via the cycle over the past a number of years, as we have continued to leverage our 3 development drivers and proceed to make operational enhancements within the different areas of our enterprise. We’ve raised the mid-cycle equal margins yearly since 2018 and 2023 was no completely different. The groups all over the world did an distinctive job delivering the document adjusted working margin of 12%, elevating the bar once more versus our prior document in 2022. Using our value-creation line helps us present us a information to make sure we’re delivering the suitable incremental margins as our market strengthens and flexing our prices down when our markets weaken which can doubtless be extra related in 2024. As we glance via the cycle again to 2012, this chart demonstrates the advantages of the disciplined execution of our technique. It’s clear that we have structurally improved the adjusted working margin of our firm by over 500 foundation factors when in comparison with the common from 2013 to 2018 at mid-cycle. Slide 10 gives an summary of regional web gross sales efficiency for the fourth quarter. Net gross sales had been down roughly 4% within the quarter in comparison with the fourth quarter of 2022 when excluding the constructive impact of forex translation. Pricing within the quarter which was within the excessive single-digit vary, contributed to greater gross sales. By area, the Europe/Middle East phase reported a rise in fourth quarter web gross sales of roughly 1%, excluding the constructive impact of forex translation in comparison with the prior 12 months. The enchancment was pushed by elevated gross sales of high-horsepower tractors and robust components gross sales, together with favorable pricing. In South America, web gross sales within the fourth quarter declined roughly 42% year-over-year, excluding the constructive impact of forex translation pushed by important pricing strain and decrease gross sales volumes within the area. All merchandise had been down year-over-year apart from components. Net gross sales in North America elevated roughly 7% within the quarter, excluding the favorable influence of forex translation in comparison with the fourth quarter of 2022. The development resulted primarily from elevated gross sales of high-horsepower tractors, sprayers and hay instruments, together with the constructive results of web pricing. On a continuing forex foundation, fourth quarter 2023 web gross sales in our Asia/Pacific/Africa phase elevated about 12% pushed by massive ag tools and our Grain & Protein enterprise. Finally, consolidated alternative half gross sales had been roughly $401 million for the fourth quarter, up roughly 9% year-over-year or 7% excluding the results of constructive forex translation. Turning to Slide 11. The fourth quarter adjusted working margin declined by 130 foundation factors versus a really robust fourth quarter of 2022. Margins within the quarter had been primarily affected by greater discounting within the South American area, greater engineering bills and better SG&A. These gadgets had been partially offset by constructive web pricing. For the complete 12 months, we realized roughly 10% pricing. By area, the Europe/Middle East phase reported a rise of roughly $48 million in working revenue in comparison with the fourth quarter of 2022 and margins improved 160 foundation factors. Higher gross sales from robust web pricing and a wholesome product combine contributed to the development. North American working revenue for the quarter elevated roughly $20 million year-over-year, whereas margins improved roughly 160 foundation factors. Operating revenue benefited from greater gross sales as a consequence of constructive web pricing and a good combine primarily based on important development in Fendt merchandise year-over-year. Grain & Protein margins additionally improved within the quarter, regardless of decrease gross sales. Operating margins in South America considerably underperformed our expectations within the fourth quarter. Operating revenue eroded by roughly $119 million versus the fourth quarter final 12 months. The South American outcomes replicate a number of elements that not solely affected gross sales but in addition had a disproportionate impact on working margins. Given the materially decrease {industry} retail demand within the quarter, we skilled aggressive competitor pricing which required us to considerably improve our retail campaigns. With the vendor stock ranges reaching optimum ranges within the third quarter, we elected to restrict vendor channel sell-in and correspondingly cut back manufacturing in our amenities. Although the margins on the sellers’ sell-in gross sales stay robust, the considerably decrease volumes versus what we had anticipated resulted in an outsized compression in working margins when making an allowance for the retail campaigns and the decrease manufacturing facility manufacturing ranges. Finally, we additionally acknowledged a big vendor termination price within the quarter of roughly $13 million which adversely affected the adjusted working margin by round 3%. Although the outcomes this quarter had been sudden and disappointing, the South American group has demonstrated important talent, delivering distinctive returns a number of quarters in a row and we’re assured within the margin restoration as market circumstances enhance. Finally, in our Asia/Pacific/Africa phase, fourth quarter working revenue was equal to 2022 ranges, although margins contracted roughly 100 foundation factors. The decrease margins are a results of decrease manufacturing facility manufacturing, greater guarantee expense and better SG&A. Slide 12 summarizes our Precision Ag enterprise. As we highlighted earlier than, we’re centered on increasing our addressable markets from simply conventional agriculture equipment spend which at present is within the low to mid-teens as a share of complete farm spend. With our Precision Ag portfolio, our sights are set to influence round 70% or successfully all non-land areas. We imagine that the investments in Precision Ag positions each AGCO and our clients effectively as it’s going to play a significant function in reaching our international sustainability targets presently being established, whereas concurrently serving to our farmers enhance their profitability. For the complete 12 months 2023, AGCO recorded $750 million in Precision Ag income, an roughly 7% improve from 2022. This was beneath our goal of $800 million to $850 million as a consequence of a mixture of three elements: a return to extra conventional seasonal gross sales patterns as we transfer previous provide chain shortages; the OEM portion of the enterprise slowing; and start-up delays at our new Morton mild meeting and distribution facility. We view the return to seasonality and the start-up delays as non permanent and we anticipate continued development in our Precision Ag enterprise in 2024. Including the proposed three way partnership with Trimble which is pending regulatory approval, we count on to hit $2 billion in Precision Ag gross sales by 2028. Slide 13 particulars our year-to-date free money movement for 2022 and 2023. As a reminder, free money movement represents money utilized in or supplied by working actions much less purchases of property, plant and tools. And free money movement conversion is outlined as free money movement divided by adjusted web revenue. We generated $585 million of money, roughly $135 million or 30% greater than 2022, regardless of rising capital expenditures by virtually $130 million year-over-year. Our money movement fell in need of our long-term 75% to 100% of web revenue goal as a consequence of a few elements. First, the timing of year-end, the collections of $150 million to $200 million of accounts receivable, was acknowledged in early January versus December. Second, the weaker leads to South America area additionally contributed to the shortfall relative to our expectations. We stay centered on direct returns to traders throughout 2023. In addition to the common quarterly dividends that we have elevated by 21% to $0.29 per share within the cost of the particular variable dividend of $5 per share within the second quarter, we additionally repurchased round $50 million of shares within the quarter to keep up our common shares excellent. Slide 14 highlights our 2024 retail market forecast for our 3 main areas. Increased grain inventories and associated decline in commodity costs are anticipated to lead to softer demand throughout all areas in 2024 in comparison with 2023. For North America, we now count on demand to be 10% decrease in comparison with the degrees in 2023. The high-horsepower row crop tools phase is anticipated to lower after a number of years of robust development that was fueled by excessive ranges of farm revenue. The small tractor phase can also be anticipated to lower in 2024, though the speed of decline is slowing in comparison with the prior years. For Western Europe, we count on that {industry} to be down 5% to 10% in comparison with 2023. Farm revenue is nearing the long-term common for the area as a consequence of diminished commodity costs and better enter prices. In South America, we count on {industry} gross sales to be down about 10% in 2024. Higher vendor inventories that started to emerge within the third quarter and climate patterns within the Cerrado area and Southern a part of Brazil are making farmers extra hesitant. Although this may increasingly have an effect on demand within the quick time period, from a long-term perspective, this area stays one of the crucial engaging finish markets, particularly in Brazil, the place the farm footprint is rising. While farm revenue is anticipated to say no from elevated ranges in 2023, we count on farmers to stay worthwhile in 2024. And AGCO’s brand-agnostic retrofit strategy to Precision Ag and robust components enterprise ought to assist dampen the cycle, making our margins much less unstable. Slide 15 highlights just a few key assumptions underlying our 2024 outlook which doesn’t embrace the influence of the pending three way partnership with Trimble. At this time, we see markets additional softening in 2024. Our gross sales plan contains market share positive aspects, together with pricing reverting again to a extra conventional degree of roughly 1.5%. As our uncooked materials prices have stabilized and we pursue price financial savings actions, we count on this degree of pricing will greater than offset inflationary price will increase. We don’t count on forex translation to have a major impact on gross sales year-over-year. Engineering bills are anticipated to stay comparatively flat in 2024 in comparison with 2023. With the expectation of our {industry} declining round 10% from roughly 105% of mid-cycle in 2023 to round 95% in 2024, we’d count on our working margins to return down from the document 12% in 2023 to round 11% in 2024, in step with the value-creation line. Delivering an working margin of 11% at this projected {industry} degree can be a number of p.c greater than what we achieved again in 2019 and 2020 at comparable {industry} ranges which is one other testomony to the transformation of the enterprise we have executed over the past a number of years. Our efficient tax charge is anticipated to be 27% for 2024. Turning to Slide 16. Our full 12 months web gross sales outlook for 2024 is $13.6 billion, down from the document ranges seen in 2023. Our earnings per share forecast is roughly $13.15. We’ve additionally set a CapEx goal of round $475 million, barely decrease than what we spent in 2023. Our free money movement conversion must be within the vary of 75% to 100% of adjusted web revenue, according to our long-term goal. For the primary quarter of 2024, we’re focusing on gross sales of roughly $3 billion and earnings per share of roughly $2.30. Both are considerably decrease than the primary quarter of 2023 as a consequence of decrease manufacturing in lots of factories and additional stock reductions within the South American area. With that, I’ll flip the decision again over to Greg for Q&A.
Greg Peterson: Thanks, Damon.
Operator: [Operator Instructions] Our first query is coming from Larry De Maria from William Blair.
Larry De Maria: Just two questions. Can you give us and assist us perceive the ’24 development assumptions within the three development areas, Precision Planting and components, that can assist you clearly outperform the market? Secondly, any replace on the Grain & Protein storage? Maybe you can assist with margins by the 2 companies which might be in there that in case you’re at this level contemplating solely promoting the entire thing, maintaining, splitting up, simply any coloration there.
Damon Audia: Yes, Larry, thanks for the questions right here. So if I take into consideration the 2024 outlook and our 3 development drivers, if I take into consideration Fendt, as we have stated prior to now, we do proceed to count on to see additional market share enlargement as we roll out Fendt right here in North America and in South America. And if I simply break that down just a little bit extra as to our confidence in 2024, we’ve got the brand new Fendt 600 popping out this 12 months. You might have noticed that we introduced the following era 700. A 12 months in the past, we introduced the brand new 200 which is extra for the vineyards. So we’ve got a number of new tractors which might be coming into the market this 12 months. We have our sprayer which we introduced final 12 months. That has full momentum coming into 2024. So general, we take a look at Fendt, we’re actually excited concerning the completely different product choices that we’re providing globally and we’ve got numerous confidence with the group executing with these new merchandise. The second half is our components enterprise. Parts did exceptionally effectively this 12 months. Revenues had been simply over $1.8 billion. As I believe you’ve got heard us discuss earlier than, we’ve got the industry-leading components fill charges in North America and Europe and we imagine we’ve got it in South America as effectively. It’s been a concerted effort of our group to essentially make it possible for our sellers and our farmers have these components after they want them. As we take into consideration subsequent 12 months, once more, we proceed to see the components enterprise doubtless rising in that mid-single-digit vary. And once more, I believe that is in all probability extra essential subsequent 12 months because the {industry} slows down and farmers are more likely to substitute numerous their tools with components. So once more, we nonetheless see that rising within the mid-single-digit vary. The third lever is Precision Ag. I touched in my feedback concerning the efficiency of the enterprise this 12 months — or in 2023, excuse me. We nonetheless see development in 2024. And the best way I might body it’s given the mixture of the retrofit and the OEM-focused Fuse enterprise in order that OEM enterprise coming down subsequent 12 months. And regardless of that — and regardless of the {industry} coming down, we’re nonetheless doubtless wanting on the Precision Ag in complete to develop in that mid-single-digit vary in 2024. So just a little bit beneath the long-term goal however once more, just a little bit extra influenced by the OEM portion of the enterprise.
Eric Hansotia: And that is Eric. I’ll simply construct on that just a little bit. Damon is spot on. We nonetheless see extra runway in entrance of us. So the Fendt simply — nice merchandise, as Damon talked about. The different half of that’s distribution community. We’ve grown our — in North America, we have grown our distribution community from about 40% protection to now 80% protection. Last time we up to date it was at 75%. We grew that one other 5 factors in 2023. Our goal is to get it over 90% in North America. In South America, we have grown that from 0 to — a 12 months in the past, it was 70%. Now we’re at 74%. Again, that focus on is 90%. So we nonetheless have — we’ve got new merchandise coming to the market via our innovation engine. We’ve received distribution enlargement alternatives nonetheless in entrance of us for Fendt. On Precision Ag, nonetheless numerous development alternatives all over the world. We — within the final a number of years, we have grown in North America from 350 sellers to 500, exterior North America from 50 sellers to 120. And we nonetheless have numerous headroom forward of us when it comes to our distribution build-out for the Precision Ag enterprise. And we proceed to develop our innovation across the crop cycle. This 12 months’s theme was, as I discussed, options for each season. So though we’re rising this 12 months, we nonetheless see rather more in entrance of us.
Damon Audia: And then Larry to your second query on Grain & Protein, once more, the Grain & Protein enterprise general did pretty effectively in 2023, just a little bit extra challenged within the Asia Pacific area, primarily in China. But revenue margins — or the working margins in that enterprise grew into the mid-, excessive single digits right here in 2023 as we noticed important enhancements, primarily within the U.S. within the South American area. As for the strategic assessment, I might say that we’re nonetheless underway with that. We perceive the worth of what which means to us as a enterprise. We’re that externally to see whether or not another person can ship much more worth which can enable us to generate the capital again into the corporate. Your query about items and components, for us, we take a look at the entire worth of the Grain & Protein enterprise, between Grain & Protein being considerably countercyclical after which whether or not that enhances the standard AGCO enterprise. I do not see us primarily items and retaining a portion. I believe for us, it will be we discover the worth in the complete enterprise and we’ll retain it and we’ll develop it as we’ve got a plan to try this. And if we really feel there’s worth — or extra worth in monetizing that, I believe you’d doubtless see us eradicating the complete a part of the enterprise. But no ultimate selections. We’ll doubtless decide on that in all probability in the midst of 2024 proper now.
Operator: And our subsequent query will come from Stanley Elliott from Stifel.
Unidentified Analyst: This is Andrew [ph] on for Stanley. I’m questioning in case you may present some coloration on the way you’re interested by your gross sales outlook for subsequent 12 months by phase. I recognize the colour you gave on the {industry} expectations however I used to be questioning in case you may present some commentary on stock ranges by area, pricing expectations, et cetera.
Damon Audia: Yes. I believe Andrew [ph], on the pricing — or sorry, on the vendor stock ranges, I believe what we noticed right here within the fourth quarter was a rise in vendor stock ranges just about all over the world, completely different levels. And if I take a look at North America, I believe I stated or Eric stated within the scripted feedback, we had been in all probability round 6 months and our goal there’s to attempt to get that nearer to the 4-month mark. And so once more, we doubtless will see some vendor — some stock popping out of the channel and that is mirrored in our outlook of lowering manufacturing by about 10%. If I take a look at Europe, we did improve just a little bit right here from the third quarter to the fourth quarter, so proper round 4 months or just a little bit above 4 months. Our superb quantity is in that 3-month to 4-month vary. So once more, we really feel like there’s just a little little bit of room there. I might caveat that, that in some segments of the market, our Fendt high-horsepower tractors, there’s nonetheless sellers who’re beneath the optimum degree. So once more, it is — I’m utilizing broad feedback once I offer you these numbers however there are nonetheless pockets of alternatives for us in areas with Fendt. And then in South Americas which we noticed essentially the most important change, as I’ve talked about on the third quarter name, vendor inventories hit the optimum degree with the numerous slowdown we noticed there primarily on the retail gross sales. It resulted in us limiting the promote into the sellers however that is nonetheless — vendor stock ranges nonetheless had been just a little bit over 4 months on tractors and just a little bit over 6 months on combines. And for us, ideally, we need to get these stock ranges within the 2-month to 3-month vary. So once more, as we discuss concerning the manufacturing cuts, these will doubtless be extra outsized in South America in 2024 versus different components of the world as we glance to rightsize that stock degree. Pricing, as I stated in my feedback, we do count on issues to turn out to be rather more normalized as we go into 2024 right here with pricing at proper round 1.5%. And it is arduous to interrupt that down by geography or product kind given new product launches and issues of that nature. But directionally, we’re searching for a extra conventional degree of pricing as we go into 2024. And I believe, quite than tie up the time going area by area on this name, I do know there’s often follow-up calls we’ll have with Stanley. And we’ll type of offer you just a little bit extra readability on that at that cut-off date.
Operator: And our subsequent query comes from Kristen Owen from Oppenheimer.
Kristen Owen: Sort of a follow-up on among the regional dynamics. Obviously, the very acute margin in South America in 4Q, I’m simply questioning in case you can discuss to a few of your assumptions for margins by area in 2024. That’s clearly been such a robust contributor to the general profitability of the corporate however nonetheless very robust in ’24. So I’m hoping you’ll be able to present some coloration on the regional margin outlook.
Damon Audia: Yes. So Kristen, if I simply take a look at possibly South America after which if we wish, we are able to go into possibly just a little bit extra element on different areas, if you wish to comply with up on that. But South America, once more, had a really difficult fourth quarter given among the feedback that I made available in the market. We nonetheless see that stock ranges being adjusted doubtless within the first quarter. So the factories are going to be down considerably year-over-year, that with doubtless some sluggish ramp-up of the retail gross sales. So we’re type of anticipating to see the South American margins in that, what I’ll name, that mid-single digits within the first quarter. And then as that vendor stock improves, our manufacturing ranges hopefully will normalize. We’ll begin to see that choose up within the second quarter. And then as the brand new financing plans for the crop crops kick in, within the third quarter and the fourth quarter and the {industry} hopefully turns into extra stabilized, we see that getting again to these mid-teen margins which is what we have been planning for South America to be at. And once more, I believe you bear in mind, the margins the final couple of quarters have been exceptionally robust given the power of that market. But we type of see South America as a mid-teens market and we count on that to be type of the second half outlook for South America.
Kristen Owen: Great. And then a follow-up to Larry’s query earlier on among the development assumptions and people development pillars. You stated components income, simply over $1.8 billion. That’s approaching practically 15% of your gross sales. And you are calling out development in that enterprise for subsequent 12 months. Just questioning in case you may also help us type of do the maths there or at the very least perceive how that’s serving to assist this via cycle margin goal that you’ve on the market.
Damon Audia: Yes. I believe the bottom line is, once more, that is — we have talked about components is 1 of our 3 high-margin development companies. And once more, it is the credit score to the group as a concerted effort in actually specializing in fill charges. They’ve performed numerous work to enhance the fill charges. We’ve put some stock in several components of the world to make sure that we’ve got higher fill charges in locations like South America. As we’re leveraging extra digital instruments with our farmers, leveraging extra of the linked machines with our sellers and leveraging extra of the linked machines with the farmers, we’re getting much more visibility, higher predictability, higher engagement with the farmers and the sellers to service that tools. That’s driving the traction that we have seen within the final couple of years. We’ve seen good development in our components enterprise the final a number of years. And because the group seems ahead with that type of focus, once more, we nonetheless count on to see type of this mid-single-digit income development in 2024 with components as effectively. So we’re nonetheless feeling good about that. And once more, I believe the market dynamics in all probability lend itself to — in areas the place farmers usually tend to look to interchange possibly quite than purchase new and that is type of reflective on our general {industry} decline. So we really feel actually good about this enterprise and the group that we’ve got driving it in 2024.
Operator: We now have a query from Timothy Thein from Citigroup.
Timothy Thein: Apologies upfront if I missed this as I used to be going forwards and backwards on calls. But — and — however possibly simply going again, I did hear your feedback on sort of attending to — ideally getting again to sort of a mid-teens margin within the second half in South America. And I’m simply curious, from the standpoint of numerous the — or not loads however among the profit in recent times has been that AGCO and others have been benefiting from a major pricing tailwind. And as that normalizes and given all the problems that you simply and others have in South America from a listing perspective, does that — I perceive you do not need to be overly descriptive on this from a aggressive standpoint however does that — do you want a worth/price — I suppose, how would worth/price then play into that when it comes to coming back from a low single-digit to a mid- to excessive teenagers? Do it’s good to be on the associated fee facet there? Or are you able to get there simply from — on simply working leverage and volumes? Hopefully, that query is smart.
Damon Audia: Yes. Tim, the reply is just a little little bit of each. We do want the working leverage, clearly, as we have to generate the absorption via the manufacturing facility to get the leverage. Our expectations are that we are going to be worth/cost-positive in 2024, even with that extra conventional 1.5% pricing. As I alluded to and Eric would attest this, we’re laser centered on our operations to do two issues. One is as provide chains have improved, driving higher productiveness via our factories in higher scheduling, lowering the quantity of rework, actually attempting to drive effectivity within the factories primarily based on the provision chain. So that is primary and that may occur all over the world. But quantity two, once more, given the constraints that we had been working within the final couple of years, we had been, I might say, attempting to get the merchandise generally at any price to ship to the farmers. As these have — as provide chains have normalized, it is giving our group a capability to essentially return and problem the provision base in understanding what’s the actual price and the place can we drive productiveness in price financial savings. And so we’ve got initiatives inside our factories and constructed into our assumptions that we’re going to drive price enhancements via productiveness and worth downs in our operations to assist bolster the margins or stabilize the margins, that 11% that we’re telling you about via these initiatives on high of among the different issues that you already know we’re doing with market share positive aspects, components development, Precision Ag development, issues of that nature. So the reply is just a little little bit of each however I might inform you this, group is clearly very centered on the associated fee facet. In South America, the place the markets are most unstable but in addition in Europe, South — in Europe, North America and Asia as effectively.
Eric Hansotia: Maybe simply to construct on that, too, from a top-down perspective, I believe your inherent query is can South America be a worthwhile area since we had a low revenue 1 quarter. Well, the three quarters earlier than that had been all 20-plus margins. And from a top-down perspective, in case you take a look at is the farmer in South America going to be worthwhile. We suppose strongly sure. That’s the market the place in a lot of the area you’ll be able to plant 2 crops, generally extra. You — proper behind the mix comes the planter and so you take off soybeans and planting corn proper behind it. It’s a tropical local weather. It’s the world the place extra land will be put into manufacturing, extremely intensively planted and harvested. So over the following 20 years, we have talked about for a very long time, the world wants extra inexperienced. Brazil goes to be an enormous a part of supplying the world and that implies that the — and the infrastructure retains getting higher to make the Brazilian farmer simpler — environment friendly. So we’re bullish on Brazil as a market. We suppose the farmer goes to be including numerous worth and worthwhile. And so then we’re doing all of the issues that Damon talked about to make it possible for we are able to assist that farmer in an environment friendly means with our provide chain.
Timothy Thein: Got it. Okay. Very good. And simply on the — for Europe, possibly only a phrase or two on — when it comes to the margin outlook in ’24. And I’m curious from mainly how product combine performs into that. And going again to your feedback about Fendt — vendor inventories being possibly a hair on the low facet. And clearly, that may have a reasonably highly effective influence to margins. So possibly simply converse to, as you probably did with South America, the expectations from a revenue standpoint.
Damon Audia: Yes. So — sure, Tim. So I do not suppose — we completed Europe general, I believe, simply round — simply over like 14.5%, 14.6%. So simply super efficiency by the group in Europe. Again, you noticed our {industry} outlook there. We have that {industry} coming down. And so we’d count on the margins to contract primarily based on {industry} and decrease general models. But given among the power we’re seeing, as I believe I discussed to Larry, among the new product introductions that we’ve got popping out with Fendt and given the robust presence we’ve got there, I might say we in all probability ought to see the margins comparatively flat on the complete 12 months. Again, it could fluctuate quarter-to-quarter. But for the complete 12 months, given that blend of recent merchandise that Fendt has popping out, we expect that we should always be capable of hold the margins comparatively flat.
Eric Hansotia: And then to construct on that blend, such as you stated, there is a channel factor for Fendt. Our new merchandise are coming into the market. In Europe, we have got the e100 coming in, the primary electrical tractor for Fendt. And on the low finish, Turkey, we expect, goes to contract as a market, or at the very least not practically — not develop practically as a lot because it has. And that is a low-horsepower, lower-margin market, usually. So there’s — though the general market is cooling, there’s numerous constructive combine components embedded in Europe.
Operator: We have a query from Tami Zakaria from JPMorgan.
Tami Zakaria: So simply questioning, are you able to replace us on the Trimble JV? Do you count on it nonetheless by mid this 12 months? And do you count on the JV to be accretive in 12 months 1?
Eric Hansotia: Yes. So JV goes proper on observe. We’ve employed an outdoor accomplice to assist us with integration planning. That’s going extraordinarily effectively. We’ve received numerous good cooperation, teamwork, tradition constructing, plan era taking place on each factor of the enterprise to make it possible for we’re prepared on day 1 and that we are able to seize the synergies of bringing these 2 nice companies collectively and serving farmers higher than anyone else within the {industry}. Regulatory approval is monitoring based on plan. We’ve already gotten approval from a number of of the areas. Still have just a few which might be in course of however that is continuing as deliberate. And based on the time line that we out laid, we expect will probably be within the first half of this 12 months. And then, we nonetheless are on-track — we nonetheless are standing behind our commitments of short-term accretion and longer-term development to a $2 billion Precision Ag enterprise being the {industry} chief in serving combined fleet Precision Ag farmers all all over the world, whether or not it is via retrofit or serving over 100 different OEMs in a really confidential and distinctive bespoke means or via AGCO machine enhancements. We’re actually enthusiastic about that.
Tami Zakaria: Super useful. And then one fast query to make clear one thing. So your manufacturing hours are anticipated down 10%. But gross sales, you count on down 6% this 12 months. And pricing up 1.5%, I believe you stated. So assist me perceive, what is the bridge from gross sales down solely 6% versus manufacturing down 10%.
Damon Audia: Yes. So I believe, Tami, you are some components development, you are Precision Ag development, some Grain & Protein development in there after which clearly, combine, as I alluded to, for — particularly in Europe with among the new Fendt merchandise. So directionally, that is what’s driving the variations.
Operator: Our subsequent query comes from Seth Weber from Wells Fargo.
Seth Weber: I needed to only take into consideration North America margins for ’24. Specifically, on the Precision Ag enterprise, I do know you are sort of moderating your development charge there. But there have been numerous disruptions with the provision chain and stuff in — over the past couple of years. So is there any motive why your Precision Ag margins should not be up in 2024 versus ’23, even with extra average development this 12 months?
Damon Audia: Yes. Seth, I do not — Precision Ag margins have been comparatively — the gross margins, once more, once I take into consideration the merchandise have been comparatively constant. We are seeing the income has been fluctuating however the pricing and the margins we’re getting have been comparatively secure. So I do not see any actual important adjustments in general margin associated to that enterprise as we go into 2024.
Seth Weber: Okay. And then simply in your ready remarks, Damon, I believe you had been speaking about efficiencies, price minimize — price measures and stuff like that. Is AGCO really planning any extra proactive price actions? Or is that this all simply type of regular course of enterprise, your regular type of effectivity measures that you simply often do? Or is there — are there extra sort of structural actions that you simply guys are considering on this softer setting?
Damon Audia: Yes. The means I might take a look at it, Seth, is when — as we glance — interact with our provide base, I might say there is a heightened degree of focus, incremental to what you’d in all probability see in a traditional 12 months. So I might layer that on as — that is extra to the day-to-day operations is driving price down within the provide base versus the place we had been within the final couple quarters — or final couple of years. As I take into consideration the bigger scale, in case you’re referring to love an SAG restructuring, issues of that nature, once more, proper now, we’re not asserting something like that. We’re watching the markets. We’re — I am going again to that value-creation line that we have confirmed you guys. I confirmed it within the slides at present. We’re going to measure ourselves relative to that line, understanding the place the market is, what the group is ready to ship in productiveness and that is on the SAG facet as effectively. And to the extent we’re not assembly that or the markets are weakening extra, we’ll take a look at all options. I might additionally inform you that the group is being very aggressive as we transfer into these international companies, international manufacturers, as we discuss extra about Fendt as a world model, attempting to search for back-office consolidations. Again, you do not hear us do something in a broad brush announcement. But we want to create commonality and a typical skeleton inside components of AGCO that create efficiencies for us long run. So I might say we’re doing that in 2024 as effectively. But once more, nothing large that you simply’re — I believe in case you’re alluding to a big restructuring, we’re not asserting something like that, clearly.
Operator: And this concludes our question-and-answer session. I want to flip the convention again over to Eric Hansotia for any closing remarks. Please go forward.
Eric Hansotia: Yes. Just briefly, I’ll shut at present by saying thanks very a lot on your participation and your assist of our — of AGCO. We’re actually pleased with our efficiency via 2023. It was an absolute document 12 months in so some ways for our clients, for our staff, for our traders. It units us for a — on a trajectory path for our outcomes to be rather more resilient via the cycle. And we have been speaking about that for a few years now and it is all coming dwelling to roost and I might hope that you simply’re as enthusiastic about that as we’re. The key to our success is the continued execution of our Farmer-First technique. Our focus is on rising our margin-rich companies like Fendt, components and repair and our Precision Ag enterprise which we have been investing in closely over the previous couple of years. The announcement of the pending AGCO-Trimble three way partnership represents the most important agtech deal in historical past and can allow AGCO to turn out to be the worldwide {industry} chief in combined fleet Precision Ag options with our distinctive deal with retrofit options. Over the previous couple of quarters, we have touched on most of the elements supporting our markets, together with rising populations, altering diets, low stocks-to-use ranges, elevated demand for biofuels and comparatively wholesome commodity costs. All of those tendencies give us confidence within the long-term well being of our {industry}. We’re excited. We sit up for seeing lots of you within the coming weeks and months. Thank you and have an excellent day.
Operator: The convention has concluded and it’s possible you’ll now disconnect. Have an excellent day.
This article was generated with the assist of AI and reviewed by an editor. For extra data see our T&C.