MAJOR global manufacturer AGCO this week reported its first quarter 2020 results.
According to the company's chairman Martin Richenhagen, "AGCO delivered solid results for the first quarter under challenging conditions".
Net sales for the first quarter were about $2.9 billion, a decrease of 3.4 per cent compared to the first quarter of 2019.
Excluding unfavourable currency translation impacts of 3.6pc, net sales in the first quarter of 2020 increased by about 0.2pc compared to the first quarter of 2019.
Total production hours were down 9pc year-over-year in the first quarter of 2020.
"Our first quarter results demonstrated strong execution as we overcame COVID-19 related production disruptions in China and Europe to expand operating margins compared to the first quarter of last year," Mr Richenhagen said.
"The strong performance in our North American region highlighted our results driven by improved product availability and an increase in the retail demand of our products."
Asia/Pacific/Africa net sales decreased 13.4pc, excluding the negative impact of currency translation.
Sales were weakest in Africa and Asia.
Income from operations reduced by $7.1 million in the first three months of 2020, compared to the same period in 2019, due to lower sales and production.
Given the uncertainty caused by COVID-19, AGCO has withdrawn all guidance for its 2020 results.
"A considerable amount of uncertainty remains for the balance of 2020 relating to industry demand, production constraints and other impacts of the pandemic," Mr Richenhagen said.
"AGCO's focus is on employee safety, serving customers and operating as effectively as possible under these challenging conditions."
He said AGCO had re-started factories and ramped up production.