AGCO Corp. (AGCO) recently won a tractor contract from the Heilongjiang provincial government in China.
Under this contract, AGCO will deliver over 300 units of Valtra tractors to the province by the year end. The company did not disclose the financial terms of the deal.
Over the last decade, AGCO has strengthened its presence in China. The company has established a strong local post-sales service team and spare parts stocks serving the needs of local end users in various regions.
Apart from China, the company plans to expand into the emerging Central and Eastern European markets, and the Far East, and expects to use its established positions in Brazil and Argentina to expand throughout the remaining South American region. Management stated that AGCO will make significant investments to support a growing list of new product programs, to develop new markets and to improve its distribution.
AGCO to pay $20 million to settle charges
In a separate announcement last week, AGCO said that it has reached an agreement with the Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) to settle charges related to UN oil-for-food kickback scheme.
The company was accused of paying kickbacks to the former Iraqi government in order to win business illegally under the United Nation’s Oil-for-Food Program. The federal officials said that AGCO attempted to hide these payments by creating a fictional account on their books.
AGCO agreed to pay approximately $18.4 million to settle with the SEC and $1.6 million penalty as part of a deferred prosecution agreement with the DOJ.
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