This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at 2005, un año de éxito para Fendt con 11.390 tractores vendidos

2005, a year of success for Fendt with 11.390 sold tractors

05/09/2006

The 2005 revenues grew by 7.1%.

In 2005, Fendt sold a total of 11.390 tractors and at the end of this year it is expected that 12.200 units have been sold.

In addition, net sales of AGCO GmbH amounted to 815 billion euros in 2005 and the company expects to achieve approximately 900 million euros at the end of the year 2006. Funds for research and development increased up to 28 million euros in 2005, total investments amounted to 26 billion euros according to Hermann Merschroth, Vice President of Fendt and spokesman of the Board of Directors during the International Conference of press 2006 in Würzburg.

In general terms, Fendt is quite favourable conditions for investments in agricultural equipment in Europe. According to the latest economic report of the VDMA, the total volume of market for tractors and agricultural equipment in the region of the EU's 25 members total amounts 17.5 billion of. This growth comes primarily from the new EU member countries, where investments in new farm equipment are very strong.

In fiscal year 2005, Fendt sold a total of 11.390 tractors. The demand for agricultural equipment was somewhat low throughout the summer. It was only at the end of the year after Agritechnica when the market Germany and also in several countries in the North of the EU recovered its thrust. This trend continues to this day. For this reason, Fendt could increase its sales plan for the year 2006, of its 11,700 original units until 12.200 units - a formidable target on the basis of many years of a weak market development in the major markets of high volume and in the southern regions. In France, the market has fallen by 10 percent for the second consecutive year, Spain also reports of more than 10% falls, in Italy the fall is about 7%.

The 2005 revenues were a record.
The net sales of 2005 reached a new record in the 815 billion euros - which amounted to 7.1% more than in the previous year. The increase in net sales was due mainly to a change in product mix. The high percentage of sold tractors of high power increased revenues by tractor. In addition, net sales of the collection equipment, Challenger Germany, units of lifting forks and continuous transmissions and second-hand machinery divisions amounted to approximately 10 per cent. The German company AGCO GmbH expected their incomes at the end of the year 2006 approximately 900 million euros.

Research and development - major investments.
All over the world Fendt is recognised as a leader marking trends in technology and innovation within the sector. It is to keep this trajectory, so AGCO continues to invest heavily in its brand "Premium" Fendt. Expenditures for research and development in 2005 amounted to EUR 28 billion, this year the budget has increased to almost 30 million euros.
Fendt also reached a new record in investment, for example, for new equipment and machinery, as well as for installations and systems of data processing: the investments of the year 2005 totaled 26 million euros. Plans of investment of the company for this year totalling 35 million euros - more than ever.
A part of these investments were allocated to the project "Fendt ahead". At the end of the year 2004 all areas of the facilities of AGCO/Fendt were intensively examined with the help of a management consulting firm. Measures and projects defined jointly to promote the growth and competitive strength are being currently implemented.

The year 2006 also a good year for Fendt.
With a large number of incoming orders even in summer, the year 2006 can also be a good year for Marktoberdorf AGCO GMBH company from a current point of view. In Germany, original high harvest expectations had to be cut drastically because of the heat and drought in June and July; Despite this, the company expects global prospects are positive that the majority of farmers get income and that there is scope for investment. In general, Fendt expects an increase in registrations of new tractors in a 5 to 10% and that the sales figures of export business remain stable or increase slightly. The growth of sales in Central Europe and Eastern may almost more than compensate for the difficult markets in the countries of the South.

21 new models presented - opening the markets of the East.
With a great show of product launches, Fendt again claim its leadership as innovator. A total of 21 new models were presented at Wadenbrunn near Würzburg - the largest presentation of this kind of all time. The spokesperson of the Council of administration of Fendt emphasized that no other manufacturer implements modern and innovative technology as consistently as does Fendt and Fendt can increase its market share worldwide with this new attractive line of products.