Revenue during the quarter grew 6.89 percent to $2,094 million from $1,959 million in the previous year period. Gross margin for the quarter contracted 21 basis points over the previous year period to 20.07 percent. Total expenses were 95.64 percent of quarterly revenues, down from 95.65 percent for the same period last year. This has led to an improvement of 1 basis points in operating margin to 4.36 percent.

Operating income for the quarter was $91.40 million, compared with $85.30 million in the previous year period.

However, the adjusted operating income for the quarter stood at $97.80 million compared to $93 million in the prior year period. At the same time, adjusted operating margin contracted 8 basis points in the quarter to 4.67 percent from 4.75 percent in the last year period.

"The past year was a challenging year due to continued weakening global market demand for agricultural equipment," stated Martin Richenhagen, AGCO's chairman, president and chief executive officer. "Despite these difficult conditions, our solid operational execution during 2016 allowed us to exceed our financial targets and be well-positioned to seek new opportunities for growth. Looking forward to 2017, industry conditions are expected to remain near the bottom of the agricultural equipment cycle in key markets. In response to the industry challenges, our focus continues to be on cost and expense reduction through globalizing processes, reducing complexity and better leveraging scale. In addition to diligent cost management, we will continue to make long-term investments to raise the efficiency of our factories, improve our service levels and strengthen our product offering."

For fiscal year 2017, AGCO expects revenue to be $7,400 million for fiscal year 2017. The company projects diluted earnings per share to be $2.50.

The company has spent $598.30 million cash to meet investing activities during the year as against cash outgo of $240.80 million in the last year. It has incurred net capital expenditure of $198.60 million on net basis during the year, down 5.38 percent or $11.30 million from year ago.

Cash flow from financing activities was $236.40 million for the year as against cash outgo of $153.40 million in the last year period.

Cash and cash equivalents stood at $429.70 million as on Dec. 31, 2016, up 0.70 percent or $3 million from $426.70 million on Dec. 31, 2015.

Working capital increases sharply
AGCO has recorded an increase in the working capital over the last year. It stood at $1,020.80 million as at Dec. 31, 2016, up 43.19 percent or $307.90 million from $712.90 million on Dec. 31, 2015. Current ratio was at 1.48 as on Dec. 31, 2016, up from 1.33 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 41 days for the quarter from 43 days for the last year period. Days sales outstanding were almost stable at 20 days for the quarter, when compared with the last year period.

Days inventory outstanding was almost stable at 42 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 20 days for the quarter from 18 for the same period last year.