Analyst Note
| Brian Bernard, CFA, CPA |Agco’s fourth-quarter results reflected improved demand for farm equipment, pushing sales higher by 8.1% year over year to $2.7 billion. Adjusted operating margins were also up in the quarter, increasing 180 basis points to 7.1% compared to the same period in 2019. The improvement was mostly attributable to stronger pricing, cost-cutting, and favorable sales mix. Agco’s free cash flow was up significantly for the full year, up to $627 million from $423 million in 2019 (positive effect from $120 million inventory reduction).