Agriculture Company Earnings Summary 2Q 2021

Titan Machinery

"Equipment demand has remained strong through the second fiscal quarter, with a 35% increase in equipment revenues compared to the previous year," said David Meyer, Chairman and CEO of Titan Machinery. "This is supported by our healthy inventory position and robust demand, along with continued strength in parts and service."

"Our Agriculture business performed exceptionally well, as high commodity prices helped offset drought conditions in some areas of our footprint."

"The current environment for farm equipment is extremely favorable, driven by high agricultural commodity prices. This has led to continued strong performance in Q2."

"Despite supply chain issues and some challenging weather conditions, demand for both new and used equipment remains strong. Farmers are upgrading their fleets with newer technology, and Section 179 tax deductions are helping support this trend."

"We have customer commitments for most of our new machinery orders scheduled for shipment in Q3 and Q4 of FY 2022, and we're also securing pre-sell orders for production slots into early FY 2023. Used equipment demand is particularly strong, reflected in improved inventory turns and margins."

John Deere

"Our strong results, across nearly all product categories, reflect the dedication of our employees and dealers in keeping factories running and serving customers during significant supply-chain pressures," said John C. May, Chairman and CEO.

"Looking ahead, we expect demand for farm and construction equipment to remain strong due to favorable fundamentals."

"In the U.S. and Canada, we anticipate industry sales of large Ag (high horsepower tractors and combines) equipment to be up about 25% for the year, reflecting improved fundamentals in the Ag sector."

"In Europe, we expect industry sales to grow between 10% and 15%, driven by stronger business conditions in the arable segment and resilient dairy prices, despite rising input costs."

"In South America, we expect industry sales of tractors and combines to increase by about 20%. The combination of higher commodity prices, strong production, and a favorable currency environment is boosting farmer profitability, driving orders through the end of the year and into the first quarter of fiscal 2022."

Cervus Equipment

Cervus is a leading equipment solutions provider across agriculture, transportation, and industrial markets in Canada, Australia, and New Zealand. With 64 dealerships, the company represents top OEMs such as John Deere, Peterbilt, and Clark.

"Increased U.S. and Canadian equipment orders, combined with supply chain disruptions, have caused delays and extended lead times for equipment deliveries."

"In Australia, strong global demand for agricultural commodities continues, supported by favorable weather conditions. Equipment availability has kept pace with demand in both Australia and New Zealand, though supply chain constraints still persist."

Linamar (MacDon)

"MacDon’s markets are performing well, with strong market share gains across core products. Despite supply chain issues and FX headwinds, demand is clearly returning," said Linamar CEO Linda Hasenfratz.

"North American agricultural markets show an optimistic outlook, with expectations of double-digit growth after a soft 2020. Q2 combine retail sales in North America were up 10% from the prior year, with Canada up 22% and the U.S. up 7%."

"Strong market demand is driving recovery at Linamar. While supply chain issues pose challenges, we are growing market share and generating cash. We are confident in a sustained period of strong demand once these issues are resolved."

Kubota

Farm & Industrial Machinery revenue increased by 31% year-over-year, driven by strong demand and a shift toward suburban living despite port congestion and labor shortages.

European construction machinery, tractors, and engines sales rose due to a recovery from weak performance in the prior year.

Japan's sales grew by 10.9% compared to the same period last year, recovering from rushed demand before a tax increase.

CNH Industrial (Case IH and New Holland)

"Despite ongoing supply chain challenges and inflationary pressures, our end markets remain strong, and we achieved record second-quarter earnings," said Scott Wine, CEO of CNH Industrial. "Our industry is clearly in a cyclical upturn."

"North America tractor demand was up 3% for tractors under 140 HP, and 49% for tractors over 140 HP. Combine demand was up 10%. In Europe, tractor and combine demand rose by 31% and 13%, respectively. South America saw a 38% increase in demand for tractors and combines."

"We expect more cost pressure in the second half of the year. The AG machinery industry remains strong, with rising commodity prices and the replacement of aging equipment driving demand."

"High horsepower tractor sales were impressive worldwide, up almost 50% in North America and nearly 25% globally. Combine demand continues to improve, with all markets growing over 10% compared to 2020."

"We are confident that the Agriculture segment will continue to outperform in 2021, supported by our existing order backlog, which now extends well into 2022."

AGCO

"Our second quarter results were highlighted by strong margin performance across all regions, resulting in record earnings per share," stated Eric Hansotia, AGCO’s Chairman, President, and Chief Executive Officer. "Proactive pricing actions by the AGCO team helped mitigate the impact of supply chain challenges and rising material costs."

"Sales and production were significantly higher than the second quarter of last year, when extended shutdowns in Europe and South America disrupted operations. Favorable farm economics are supporting increased replacement demand, and market response to our technology-focused products remains strong."

"Elevated agricultural commodity prices are supporting healthy farm economics, which are expected to drive growth in industry demand across all major markets in 2021."

"North American low horsepower tractor sales improved compared to last year, while demand for high horsepower tractors showed considerable strength. An extended fleet age and favorable commodity prices contributed to a 24% increase in North American large agricultural equipment sales in the first half of 2021."

Polaris

"North American retail sales decreased 28% for the quarter compared to last year, largely due to limited product availability caused by supply chain constraints," said Mike Speetzen, CEO of Polaris Inc. "However, on a two-year basis, retail sales were up 14% compared to the second quarter of 2019."

"‘Think Outside’ continues to resonate with both new and existing customers, and our second quarter results exceeded expectations. All segments performed strongly, posting increases in both sales and profitability despite a challenging supply chain and rising input costs."

"While supply chain issues and higher input costs will persist into the second half of the year, the Polaris team has shown remarkable agility and resilience. I remain confident in our ability to meet dealer and consumer demands and deliver value for shareholders."

"Dealer inventories are at the lowest levels in decades due to strong consumer demand."

"The powersports industry has experienced significant demand, and this trend continued into the second quarter, with market share gains in both ATVs and side-by-sides."

Valmont (Valley irrigation)

"Sales growth was driven by significantly higher sales in the Irrigation segment, as strong global agricultural market fundamentals continue to boost farmer sentiment," said Stephen G. Kaniewski, President and CEO.

North American irrigation sales reached $156.1 million, a 58% increase compared to 2020. Growth was fueled by higher volumes and average selling prices due to strong agricultural market conditions.

Lindsay (Zimmatic irrigation)

"Healthy agricultural market fundamentals and positive grower sentiment continue to drive increased global demand for irrigation equipment," said Randy Wood, President and CEO. "At the same time, raw material inflation and other supply chain issues continue to create challenges and margin pressures. Our teams have managed these conditions effectively to support our customers."

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