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Martin Richenhagen, AGCO CEO, on how the weather impacts the company’s business, and the potential for a drought again in 2013.
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There's concern we may see a weepy in 2013.
A repeat of the drought conditions.
-- -- crop conditions that we are seeing right now.
So what does this mean in terms of farming equipment things like tractors -- -- tightening on Fox Business exclusive this Martin mission Hagen -- co chairman.
CEO and presidents are welcome to you.
No I think you limit for the invitation sent your third quarter net profit was quite impressive up double digits percentage wise to you for your outlook he actually lowered it because of the trap conditions so how is that impacting.
Farm equipment sales.
Endless -- -- -- because some from Thomas did pulled back.
Their purchases.
And -- he -- -- hog grain and it's -- install its business was suffering a little bit.
We had another reason why we have to be a little bit more conservative which is -- -- effectively be opened in Germany.
And the stock opted in to -- as such as scheduled.
So now you're forecasting are expecting worst case scenario another drought.
In the wheat markets in the US how much does the weather impact your business and you must be able to direct it.
C and direct parallel.
Well all of long globally it's a -- so that means B we might have been to volunteer and then we have too much then in another part of the world.
Weather is something we cannot PV -- could they -- control costs -- about I hope there will be no.
I don't know second holiday as as big as this -- in the US senate next -- So -- boosting operations in China Brazil Russia what are your plans for emerging markets how much potential offsetting is that any troubles in the US.
Yet we are very runoff -- the -- countries we have a number of one with the two -- Massey Ferguson and about time more than 50% market share in Brazil and South America.
The VI invest in about the end of fifty million US on -- -- it is in China.
And next week I'll go tool athlete time will be open our first.
-- effect of the on the continental traffic -- 100 million -- and I understand -- expected much -- that market specifically but do you see him in Africa we have -- now one billion people living there.
And the population for Africa -- double within the next when you five TF so that's an important close.
Africa has about 60%.
Of the world is of inevitable -- And only 20% off that Landis combat off so as a desperate need -- mechanization and with the high -- crisis who just mentioned.
That also is financially viable.
So the higher crop prices that farmers are receiving in these countries -- the world are actually.
Using it for capital upgrades.
Yes and we need to go let's say the business oppose an F because slightly different he already -- A recorded demo farm in Zambia -- with about thirty people will be due from about 250.
A curse and be basically invites customizing product we explained to them how mechanized -- on farming works.
-- in the US though because of the drought conditions perhaps another job because of the overall economic challenges the fiscal cliff we have to talk about that.
Do you find -- domestic farmers are cutting back on their spending or perhaps not upgrading their farming equipment.
It's just the opposite so they tried to be more -- violence in technologies so with Smart months.
Hodac's you have less sorry Lou press.
And you can do more intelligent farming and that -- so of course also in in the case of bad weather conditions.
The latest and greatest -- farming equipment what is the most high tech track trekking get my hands on -- I think it's a product Hamas and send -- our patents the two books worldwide leader in technologies.
And it has and we singing you would like to have few who could even go to new York and pocket.
And do your Christmas shopping because it does just that fought demise but -- -- and that's not.
And that -- new maybe is speed test.
That's not to -- left yeah that's a pretty well put New York City isn't going to say that our -- -- 13% ten net profit in the third quarter.
What -- forecasting here for the duration of the year well and.
And now that is a difficult question to answer the guidance for us that -- here there's about ten billion at top line and about 52 ND.
In -- expect -- and that's I think will be will be -- -- to maybe hopefully little bad up and I'm pretty optimistic -- -- -- 2013.
-- farming equipment is not my expertise so this is a wonderful education.
Thank you don't like the good tonight Christy and it -- Harrison hot in the ad -- chairman CEO and president really wonderful need to afternoon alexion -- -- --
