Exhibit 99.1
Reclassification of Segment Information
The Company has four reportable segments: North America; South America;
Europe/Africa/Middle East and Asia/Pacific. Each regional segment distributes a
full range of agricultural equipment and related replacement parts. The Company
evaluates segment performance primarily based on income from operations. Sales
for each regional segment are based on the location of the third-party customer.
During the first quarter of 2004, the Company modified its segment reporting
from five reportable segments to four reportable segments. The Company no longer
considers the Sprayers division a reportable segment under the requirements of
SFAS No. 131, "Disclosures about Segments of an Enterprise and Related
Information," due to organizational changes and changes in the distribution and
servicing of certain Sprayer products which became effective January 1, 2004.
Therefore, the results for each of the fiscal quarters ending March 31, June 30,
September 30 and December 31, 2003 and the year ended December 31, 2002 have
been reclassified to conform to the current presentation.
North South Europe/Africa Asia/
America America /Middle East Pacific Total
--------- -------- ------------- -------- --------
2003
Net sales
First Quarter $ 280.1 $ 68.9 $ 385.0 $ 23.2 $ 757.2
Second Quarter 294.0 100.0 485.0 23.7 902.7
Third Quarter 264.3 121.7 368.0 46.3 800.3
Fourth Quarter 337.8 125.7 520.8 50.8 1,035.1
--------- -------- --------- -------- --------
Total $ 1,176.2 $ 416.3 $ 1,758.8 $ 144.0 $3,495.3
========= ======== ========= ======== ========
Income from operations
First Quarter $ 9.8 $ 8.9 $ 29.3 $ 3.0 $ 51.0
Second Quarter 15.1 11.7 37.7 3.2 67.7
Third Quarter 7.2 18.8 13.3 8.6 47.9
Fourth Quarter 7.3 21.1 33.4 8.4 70.2
--------- -------- --------- -------- --------
Total $ 39.4 $ 60.5 $ 113.7 $ 23.2 $ 236.8
========= ======== ========= ======== ========
Depreciation
First Quarter $ 4.8 $ 1.1 $ 7.4 $ 0.7 $ 14.0
Second Quarter 3.9 1.6 8.9 0.5 14.9
Third Quarter 4.2 1.5 7.6 1.1 14.4
Fourth Quarter 4.1 1.7 8.9 0.8 15.5
--------- -------- --------- -------- --------
Total $ 17.0 $ 5.9 $ 32.8 $ 3.1 $ 58.8
========= ======== ========= ======== ========
Capital expenditures
First Quarter $ 4.0 $ 1.1 $ 4.2 $ -- $ 9.3
Second Quarter 5.3 1.9 11.6 -- 18.8
Third Quarter 2.5 3.1 14.3 -- 19.9
Fourth Quarter 3.9 7.9 16.4 2.5 30.7
--------- -------- --------- -------- --------
Total $ 15.7 $ 14.0 $ 46.4 $ 2.5 $ 78.7
========= ======== ========= ======== ========
Assets as of December 31, 2003 $ 685.2 $ 222.0 $ 836.4 $ 47.3 $1,790.9
========= ======== ========= ======== ========
A reconciliation from the segment information to consolidated income from
operations is set forth below:
First Second Third Fourth
Quarter Quarter Quarter Quarter Total
---------- ---------- ---------- ---------- ----------
Segment income from operations $ 51.0 $ 67.7 $ 47.9 $ 70.2 $ 236.8
Corporate expenses (5.6) (5.4) (6.0) (6.4) (23.4)
Restricted stock compensation
expense (0.1) (0.1) (0.3) (0.1) (0.6)
Restructuring and other
infrequent income (expenses) (7.0) (19.2) (1.6) 0.2 (27.6)
Amortization of intangibles (0.4) (0.4) (0.5) (0.4) (1.7)
---------- ---------- ---------- ---------- ----------
Consolidated income from
operations $ 37.9 $ 42.6 $ 39.5 $ 63.5 $ 183.5
========== ========== ========== ========== ==========
North South Europe/Africa Asia/
America America /Middle East Pacific Total
-------- -------- ------------- -------- --------
2002
Net sales $1,039.2 $ 270.8 $ 1,505.6 $ 107.1 $2,922.7
Income from operations 30.9 30.5 133.6 19.4 214.4
Depreciation 15.0 4.3 26.0 2.5 47.8
Capital expenditures 15.5 8.8 30.6 -- 54.9
Assets as of December 31, 2002 $ 742.0 $ 127.2 $ 634.4 $ 37.2 $1,540.8
======== ======== ========= ======== ========
A reconciliation from the segment information to consolidated income from
operations is set forth below:
2002
-------
Segment income from operations $ 214.4
Corporate expenses (22.2)
Restricted stock compensation
expense (44.1)
Restructuring and other
infrequent expenses (42.7)
Amortization of intangibles (1.4)
-------
Consolidated income
from operations $ 104.0
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