Good morning, ladies and gentlemen. My name is Ryan, and I will be your conference operator today. At this time, I would like to welcome everyone to the AGCO 2015 First Quarter Earnings Release Call. All lines have been placed on mute in order to prevent any background noise. After the speakers' remarks, we'll have a question-and-answer session. I would now like to turn our call over to Greg Peterson, Director of Investor Relations. Please go ahead.

Thanks, Ryan, and good morning. Welcome to those of you joining us for AGCO's first quarter 2015 earnings conference call. We will refer to a slide presentation this morning, which is posted on our website on our investor page at www.agcocorp.com. The non-GAAP measures used in the slide presentation are reconciled to GAAP measures in the last section of the presentation. We'll also make forward-looking statements this morning including demand for our products and the economic and other factors that drive that demand, product development plans and timing of those plans, acquisition and other and our expectations with respect to the costs and benefits of those plans and timing of those benefits. Our future revenue, earnings and other financial metrics will also be discussed. We wish to caution you that these statements are predictions and that actual events may differ materially. We refer you to the periodic reports that we file from time-to-time with the Securities and Exchange Commission including the company's Form 10-K for the year ended December 31, 2014 and subsequent Form 10-Qs. These documents discuss important factors that could cause the actual results to differ materially from those contained in our forward-looking statements. A replay of this call will be available on our corporate website. On the call this morning – with me this morning are Martin Richenhagen, our Chairman, President and Chief Executive Officer; and Andy Beck, our Senior Vice President and Chief Financial Officer. And with that, Martin, please go ahead. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Thank you, Greg, and good morning, everybody. We appreciate you joining us on the call. My comments start on slide three. You can see that in the first quarter of 2015, AGCO sales were down approximately 27%. We felt the effects of weaker market…

Our first question comes from the line of Jamie Cook from Credit Suisse. Your line is open. Andrew E. Buscaglia - Credit Suisse Securities (USA) LLC (Broker): Hey, guys. It's Andrew standing in for Jamie. Can you just comment a little bit more on your Europe results? It appears that most of the – on margin line, most of it is driven by AGCO-specific efforts. So could you just comment a little bit more what we're seeing in the region? It sounds like things are tracking a little bit weaker since Q4. And then given the margins were pretty impressive, were you surprised at how well the cost initiative have worked out in the quarter? And that you mentioned new products. Is that tracking ahead of schedule? And just how do you anticipate that margin going forward? Is it at a sustainable level? Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Yeah. One, I certainly believe it's sustainable. Second, when you do something important like this and it's a major reorganization and a core process redesign, we went through some of the results come in also a little bit as a surprise. So that means we obviously did a very good job in Europe, and we think that we can also perform on the same level during the rest of the year. Andrew E. Buscaglia - Credit Suisse Securities (USA) LLC (Broker): Okay. That's helpful. And then can you comment a little bit more on your dealer inventory levels? I know you said they were down over $175 million, but how this tracked to your expectations for the quarter. And then what are you expecting for the remainder of 2015 in that regard? Andrew H. Beck - Chief Financial Officer & Senior Vice President: Yeah. The $175 million…

Your next question comes from the line of Stephen Volkmann from Jefferies. Your line is open.

Thank you. Good morning. Andrew H. Beck - Chief Financial Officer & Senior Vice President: Good morning, Steve. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Good morning, Steve.

Good morning. A couple end market questions, if I may. I'm curious about, you talked about the GSI being sort of countercyclical and so forth. But there's been some signs of the dairy and livestock sector kind of weakening a little bit, especially here in North America. And I guess I'm wondering sort of how you think about that; how much visibility you have. Is that the next shoe to drop, or do you feel fairly confident that, that segment that impacts your smaller tractors in GSI and so forth is still sustainable? Martin H. Richenhagen - Chairman, President & Chief Executive Officer: We are fairly confident that we perform as indicated. But when it comes to the details, that I would like to hand over to Andy. Andrew H. Beck - Chief Financial Officer & Senior Vice President: Sure. What we're seeing is, as we said is in GSI, some strength on the protein side. And you have to recall that for GSI, that's poultry equipment and equipment relating to pigs – pig production. And we're seeing some weakness softening on the pig side, but on the poultry side, still very positive. And so that's where most of the growth's coming from. On the grain side, we're doing quite well in markets like South America. We're much weaker in Eastern Europe because of the political situation there. And then in North America, we're seeing a good activity on the commercial side but some weakness on the on-farm farmer grain storage side. So overall, our grain storage business should be relatively flat with some increased sales on the protein side.

Okay. Great. That's helpful. And then maybe my follow-up – maybe this is for Martin. It's on Europe, and I know you spend a fair amount of time over there. But some of the other companies we cover are seeing some modest signs of life in Europe, as they've done various types of QE and they have, obviously, the benefits of currency. And given that European farmers generally sell I guess in dollars, any chance that there's some risk to the upside in the European end market assumptions? Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Not really. So that means overall, my careful impression is that we somewhat seem to bottom out globally. So I think we more or less are, I think, at the end. And we can see some light at the end of the tunnel, not only in Europe. So therefore, I'm slightly optimistic and I'm very positive about us making what we promised this year.

Okay. Thank you.

Your next question comes from the line of Steven Fisher from UBS. Your line is open.

Hey. Thanks. Good morning, guys. It's Eric Crawford on for Steve. Andrew H. Beck - Chief Financial Officer & Senior Vice President: Good morning, Eric. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Good morning.

Hey. So just real quick, I guess housekeeping question first. Share repurchase, is that still expected to contribute $0.07 to $0.10 towards the EPS guidance for the year? Andrew H. Beck - Chief Financial Officer & Senior Vice President: Yeah. I think it'll be above that at this point. It still depends on the rate that we go. But as we see it today, I would say it's going to be north of that estimate at this point.

Okay. Any order of magnitude to help us? Andrew H. Beck - Chief Financial Officer & Senior Vice President: I would guess more like $0.15 to $0.20.

Okay. Great. Thank you for that. And then I guess the sales guidance ex the currency impact was really only taken down a touch, so I'm curious. I think you mentioned orders in some of the regions, but how orders are coming in relative to expectations across the board and any regional color would be great. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: The order intake is pretty much in line with our sales forecast, which I think we took down more substantially in South America. Maybe you didn't get that, but this is a more – a bigger variance to our budget. Andrew H. Beck - Chief Financial Officer & Senior Vice President: Yes. So from the order standpoint, as Martin said in his comments, our orders are down in North America but actually up from a year ago in Europe. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Yeah. Andrew H. Beck - Chief Financial Officer & Senior Vice President: And so therefore, we're seeing the most upside. But our order coverage is reasonable for North America and Europe. South America, as Martin said, is where we're seeing a weakness. The order board is down significantly, and our order coverage is not as strong. And that reflects why we brought down our industry assumption and we brought down our sales forecast in South America here for the balance of the year.

Right. Well I guess, just with orders up – I thought I heard Martin mention that. With orders up, I guess this ties into Steve's question earlier on and Andrew's, really, potential upside to the margins that you're getting in Europe. They're already at the high end of the 8.5% to 9% range that you called out. So just wondering with orders up, if you're going to get some possibility of upside to that. Andrew H. Beck - Chief Financial Officer & Senior Vice President: I think we've already reflected that in our new – in our forecast. We are facing headwinds on currency. We're facing headwinds in South America, bringing the market down. And the source of offsetting that is the European results. So, yes, we're more positive in what we can accomplish in Europe this year. A little on the sales side, but more importantly on the margin side. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: When you ask for some more flesh to the bone, overall, I think we came in with a very well-balanced plan, and we share with you a very well-balanced forecast. If you now ask about the risks and opportunities, I think that there are most probably more opportunities than risks seen as of today.

Excellent. Well, really nice execution. I think you should be commended. And thanks for the time. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Can I have that in writing please? Thank you.

Thank you.

Your next question comes from the line of Ann Duignan from JPMorgan. Your line is open.

Hi. Good morning, guys. Andrew H. Beck - Chief Financial Officer & Senior Vice President: Good morning, Ann. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Good morning.

It's still Ann Duignan. I'm not sure where that last name came from. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: I like "Annie Dini."

Well, back to reality here. As I look at your outlook by region, I mean and look at where we are year-to-date, we're already kind of at the low end of your guidance almost across the board. And in particular, how comfortable are you that you've taken down South America sufficiently? I mean with all the changes that are going on in the financing programs, if anything, there might be some pre-buying going on out there right now. We're looking into a dark hole in the back half of 2015. Does South America represent the greatest risk to the downside, do you think, at this point? Andrew H. Beck - Chief Financial Officer & Senior Vice President: Yeah. I think the most uncertainty right now is certainly South America because it's not just looking at the economic situation of the farmers; it's more of the uncertainties around the financing programs in terms of what the rates the FINAME programs will have in the back half of the year and the availability of the funding. So some of the weakness we're seeing currently is because the BNDS is not funding the deals on a consistent basis, and that's causing uncertainty in the market. Dealers aren't getting paid as quickly they'd like, so they're not putting as many orders in. So it's causing the market to be disrupted to some extent. So that's where the uncertainty is. And as I've said, our order boards look at a little better in North America and a lot better in Europe. So we have more confidence there. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: And what we are doing now is we put our North American guy in charge of South America, and we basically work towards a major reorganization. So that means, I think, we look really into all corners and all details. And I think, therefore, we are doing the right things.

Okay. So, it will be more self help rather than industry support. And then I'm wondering... Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Yeah. I think so.

Yeah. Thank you. On Western Europe, once again, industry sales are below, kind of on the low end of your guidance, below your guidance, you had stated on tractors. Where are you seeing the strength in orders, specifically? Andrew H. Beck - Chief Financial Officer & Senior Vice President: Ann, it's across the board, but I think the first couple months of the year were relatively weak. The month of March and the industry was actually down about I think 6% or 7%. France was down very significantly in the first two months of the year but much flatter in March. So it's still little early to tell, but I think we're seeing some of those first couple months get offset now by a little stronger conditions. So I think we're still in line with what our industry assumption is. In terms of orders, it's across the board. There's not one specific market that is driving that order board.

And is it your sense that farmers getting used to the notion of the CAP reforms and maybe the cereal side a bit better than the dairy side? Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Yeah. I think the CAP reform is not a real issue. So farmers know it, and it's not a surprise.

Okay. I'll get back in line, guys.

Your next question comes from the line of Larry De Maria from William Blair. Your line is open. Larry T. De Maria - William Blair & Co. LLC: Okay. Thanks. Good morning. Couple questions. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Good morning, Larry. Larry T. De Maria - William Blair & Co. LLC: Hey. Good morning. First on price, mid-teens, I guess the 2% positive price. Can you break that down a little bit by region and where maybe there is some pressure or not? Andrew H. Beck - Chief Financial Officer & Senior Vice President: Yeah. So, so far, early in the year, Larry, we're looking at – in the first quarter, we had somewhere between 1% and 1.5% pricing. A little lower in North America; a little higher in Europe and South America. So as we go through the year, we would expect to kind of see that unfolding it. Makes sense as you think about our inventory reduction efforts that Andy was talking about. So we're still looking at 2% for the full year, probably a little more in Europe and a little less in North America. Larry T. De Maria - William Blair & Co. LLC: And when we think about the risks to the year, do you consider that a relatively major risk into the second half on price? Andrew H. Beck - Chief Financial Officer & Senior Vice President: Well certainly, as our inventory reduction plans go, I think, and the way the rest of the industry succeeds or doesn't succeed in lowering inventory levels will dictate what pricing looks like I think. But right now, we're still optimistic that, that 2% is what we'll achieve. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Yeah. Most of it is already implemented, and the rest is basically how we handle discounts. Because our inventories are pretty much in shape, we don't have to do some special efforts like some of our competitors. Larry T. De Maria - William Blair & Co. LLC: Okay. Thanks. That makes sense. And then just curious, North America ex GSI in the traditional core business, are you losing money there? And if so, is there a line of sight to improve the profitability? Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Of course not. Andrew H. Beck - Chief Financial Officer & Senior Vice President: No. We're not. Forecast is to be very profitable for the full year in North America without GSI. Larry T. De Maria - William Blair & Co. LLC: Without GSI. Okay. Andrew H. Beck - Chief Financial Officer & Senior Vice President: Yes. Larry T. De Maria - William Blair & Co. LLC: Thank you. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: (35:36).

Your next question comes from the line of Andrew Kaplowitz from Barclays. Your line is open.

Hi, guys. It's Alan Fleming in for Andrew today. Nice quarter. Andrew H. Beck - Chief Financial Officer & Senior Vice President: Good morning, Alan.

Maybe you can just talk about your company-level inventory across the regions. Are there any regions where you maybe have a little bit more work to do versus others, Europe versus North America? Are you a little bit further in terms of wanting to get your inventories down in Europe? Andrew H. Beck - Chief Financial Officer & Senior Vice President: No. It's usually where the market's the weakest. So inventory levels are pretty much in line where we want them to be in most regions. A little more challenged in North America and South America, and our European inventories are in good shape.

Okay. And then maybe just a quick question on your Asia – the startup costs in Asia this quarter. How is that facility and the startup of that facility trending versus your expectations? And when should we start to see those startup costs moderate? Andrew H. Beck - Chief Financial Officer & Senior Vice President: Yeah. What's going on in our new factory in China is that we're on-boarding new ranges of the low-mid horsepower tractor line that we're putting in that facility. And so this is a important year where we're getting – get a lot of the new products and down the line and start to sell them this year. But we won't fully complete that process until next year. And so – but we should see some improvement in 2016 because we'll have a relatively good complement of tractors going down the line and being produced and shipping around the world. And that will enable us to absorb the fixed costs that we have in that facility, and we'll start to see good results out of APAC as well.

And actually, 2015, too, will get better as we go through the year. So closer to breakeven as we go through the year.

Okay. I'll leave it there. Thanks, guys. That's helpful.

Your next question comes from the line of Tyler Etten from Piper Jaffray. Your line is open. Tyler L. Etten - Piper Jaffray & Co (Broker): Hi, guys. Nice quarter. I was wondering if you can talk about the production reductions being more front-end loaded. If we see another large crop coming out of North America, do you think that there's risk to further production reductions in the back half? Andrew H. Beck - Chief Financial Officer & Senior Vice President: Well I think our production schedule is all dictated by what our industry assumptions are and what our sales assumptions are. If those change, then positive or negatively, we'll have to change production and the like. So it all comes down what those industry assumptions are. I think they're reasonable, and that's where we think it's going to go at this point. Obviously what the crop is this year, where crop prices go are an important factor that drives industry demand. And so it'll be something that we'll keep a close eye on during the year. Tyler L. Etten - Piper Jaffray & Co (Broker): Okay. I guess a better question would be to ask if there are further levers you guys can pull to reduce production costs without having to do any major restructuring, if that were to happen? Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Yes. What you have in many factories is already in place, so we are in the process of negotiating our flexible working hours. So we have it now in most of the European factories, we have at in Brazil and we are in the process of getting to an agreement here in the U.S., which then would help us to basically handle both directions. Tyler L. Etten - Piper Jaffray & Co (Broker): All right. Thank you.

Your next question comes from the line of Rob Wertheimer from Vertical Research. Your line is open.

Hi. Good morning. It's Joe on for Rob. First question, just your comment about parts globally being down 4% ex currency. Are you able to comment by region in terms of the parts activity you're seeing? I think at SEMA earlier in the quarter, the sentiment seemed to be a little bit downbeat, reflecting maybe a little bit more downward pressure on parts activity there. So just curious what you're seeing sort of around the world. Andrew H. Beck - Chief Financial Officer & Senior Vice President: I think that's pretty much across the board what we see. And typically, when you have a weaker market, the dealers do some de-stocking of their inventory levels. So I think that's what we're seeing right now. But I think the parts sales will be relatively stable as we get into the real activity periods of planting and harvesting throughout this year.

Okay. And then just a second question on the production plans and what you lay out on slide five and seeing that 2Q looks sequentially flattish with 1Q and then another step down into the back half of the year. Could you talk about the actions that sort of offset some of the production headwinds in terms of what is an implied margin raise from 1Q, and sort of where you might feel a little bit more pressure on lower production. What's going to help offset that, whether it's mix by region or other actions? Andrew H. Beck - Chief Financial Officer & Senior Vice President: In terms of our margins, we're getting positive benefit from pricing and really very modest material cost increases. So we're doing – and we've improved our forecast in terms of where we think our component costs will be. And so that's helping us. We do have increased cost related to Tier 4, and some of that pricing relates to Tier 4. But overall, a net positive on pricing and cost, material cost. We also have the restructuring actions and the savings that we have going on in our plants. We took down significant amounts of our overhead structure. We moved to one shift in a lot of our facilities this year, which helps our labor productivity. And as a result, those are the things that are offsetting the negatives that you've talked about. One is the lower production which reduces our ability to absorb fixed cost. And also, we're also facing a lot of headwinds on mix. So as the market decline is mainly in the high-horsepower sector and much more flat sales in the lower horsepower sector, that's not helping us from a mix standpoint. So those two things are driving the margins down.

Great. Thanks very much for the detail.

Your next question comes from the line of Michael Feniger from Bank of America. Your line is open.

Hey, guys. Just filling in for Ross at BofA. Martin, back to one of your earlier comments. So do you believe we are bottoming out in Europe, or is that a comment about global demand potentially bottoming out this year?

Yeah. It would also include Europe, but it's I think pretty much globally based on the latest view we shared with you.

Okay. Well, fair enough. And then you mentioned how your inventories are down, but that's not really the case with some of your competitors. Do you guys have a view of how used equipment prices are trending so far? Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Well, maybe, Greg, you can talk about it.

Yes... Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Our equipment.

Right. So after being down probably 10% or 15% in 2014, depending on which survey you look at, they're probably down low single digits so far this year. So I'd say pretty stable in terms of used equipment pricing. A little different depending on region and models and stuff, but relatively stable so far.

And then I guess if I could just ask one more. You guys did make a comment – you gave us great color on Europe that the first two months were weak but it was better in March. I was hoping you could give us that kind of color of how the order book trended through the quarter and maybe even April for North America and the other regions. Andrew H. Beck - Chief Financial Officer & Senior Vice President: Well, in terms of order book, I think it's been fairly consistent in North America. And in South America, it's been declining as a result primarily of the increase in the interest rates of the FINAME program that were announced during the month. And so that's put a decline on our order intake rates. And as a result, we reduced the industry forecast.

Great. Thanks, guys.

Your next question comes from the line of Vishal Shah from Deutsche Bank. Your line is open.

Yeah. Hi. Can you hear me? Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Yes.

Yeah. Hi. I just wanted to really better understand the inventory situation and the impact on pricing. I understand that some of your competitors are lowering prices. So how is that impacting the market and your guidance of two points of (45:05) utilization? Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Is all baked in, so that means we don't see a bigger effect basically during the rest of the year.

And just on the overall different regions. I mean do you see aftermarket (45:30) down as much, given sales of the service charge, cost and price? Or do you think the (45:38)? Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Yeah. It's difficult to understand you, but the line is not good. So we just talked about the parts business, and the service business actually is pretty stable as far as we hear from our dealer. So no issue there.

Thanks so much.

Your last question comes from the line of Seth Weber from RBC Capital Markets. Your line is open.

Hey. Good morning, guys. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Hey, Seth.

I just wanted to go back to the cost initiatives. SG&A and engineering were both lower than what we were expecting for the quarter. Are these good run rates from here, or are those numbers going to continue to come down from here? As that I know these programs started last year, so I'm just trying to figure out where we are in the cadence there. Andrew H. Beck - Chief Financial Officer & Senior Vice President: The run rates are probably pretty good for now. Some of the moves may be currency driven, but we got all the head count reductions and the restructuring done mainly by the end of the year. So that had our first quarter be pretty much intact in terms of what we were trying to accomplish. There was some additional work that we accomplished throughout the quarter. But for the most part, yeah, you can use that as the run rate. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: And when it comes to engineering, we basically don't want to change our strategy. So we try to do what we had planned to do in our strategic plans, but we try to do it in a more efficient and cost-effective manner.

Right. Okay. So – thank you. So, Andy, is there a percentage of revenue that we should think about for SG&A, or do you think about it as a dollar number? Andrew H. Beck - Chief Financial Officer & Senior Vice President: Well, I was referring to dollars because the...

Okay. Andrew H. Beck - Chief Financial Officer & Senior Vice President: The percentage of sales are going to move with the various seasonal changes in our in our sales level. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: In engineering, we think it should be between 3% and 4%. Andrew H. Beck - Chief Financial Officer & Senior Vice President: Yeah. This year is...

Right. Andrew H. Beck - Chief Financial Officer & Senior Vice President: Is 3.6%. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: Yeah. Andrew H. Beck - Chief Financial Officer & Senior Vice President: Yeah.

Right. And I got that. Thank you. And then maybe just, Greg, on used equipment inventories, have they started to moderate or come down at all?

Yeah. They've moved similar to the direction that our dealer inventories have moved. So we talked about typically down 5% to 10% across the regions.

Okay. Great. Thank you very much. Martin H. Richenhagen - Chairman, President & Chief Executive Officer: You're welcome. And...

We'll now turn our call back over to Greg for offline questions.

Thanks, Ryan. I want to thank everybody for your participation today, and I encourage you to follow up if you have any additional questions. Thanks and have a great day.