AGCO predicts lower profit increase thananalysts.

AGCO predicts lower profit increase than analysts--AGCO Corp., which had a record sales gain in 2007, said 2008 earnings per share may rise 25 percent on demand from Brazil and North America, which would increase pre-share prices from $2.63 to $2.75, according to the company. However, that range

is less than the average of $3.12 a share estimated for 2008 by 12 analysts in a Bloomberg survey. AGCO's stock more than doubled in 2007, but Chief Financial Officer Andy Beck said the company wants to be realistic. "We're approaching some of the peak industry levels," he said. AGCO expects overall revenue will climb 11 to 13 percent industry-wide in 2008, with a "modest increase" sales growth over 2007 in the US and a lower sales growth in South America of 10 percent, down from as much as 55 percent in 2007. AGCO is looking at the developing markets of Russia and Eastern Europe to provide significant growth opportunity and demand for western agricultural technology. Beck said the company plans to spend up to $185 million on research and development ($25 million more than last year) and may also raise 2008 prices 1.5 to 2 percent. (Bloomberg.com)