The variance was mainly due to increased sales of high-horsepower tractors, combines and application equipment, as well as the effects of positive pricing that offset inflationary cost pressures. The gross and operating margins are expected to be higher than the 2022 reported levels, owing to rising sales and production volumes, as well as the company’s pricing actions to mitigate material and labor cost inflation. The improved profitability is likely to support incremental investments in engineering and other technology to advance AGCO’s precision agriculture and digital initiatives.