World Grain - October 2019 - 72

SUPPLIER NEWS

AGI posts record quarterly, half-year trade sales
WINNIPEG, MANITOBA, CANADA - Ag Growth
International Inc. (AGI) posted record trade sales and adjusted earnings in the three- and six-month periods ended June
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Trade sales for the second quarter reached C$293 million,
up from C$262 million in the same quarter a year earlier. For
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from C$476.7 million. AGI attributed the increase to demand
for portable Farm equipment and contributions from recent
acquisitions in India and France.
Adjusted EBITDA increased over 2018 as higher trade sales
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months it was C$82 million, up from C$80 million.
Adjusted EBITDA as percentage of sales decreased compared to 2018, largely due to an anticipated low sales volume quarter in Brazil, a seasonally low sales volume quarter
in India and the impact of challenging weather conditions on
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2018 results despite challenging conditions in North America
and the timing of sales in Brazil and other international marNHWV´ VDLG 7LP &ORVH SUHVLGHQW DQG FKLHI H[HFXWLYH R൶FHU
of AGI. "Our North American Farm business continued to
perform well as the replacement cycle for portable grain hanGOLQJHTXLSPHQWUHPDLQHGVWDEOHZHWFRQGLWLRQVLQWKH86
and increased market penetration in Canada resulted in higher
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equipment in Canada were very strong due to continued investment in grain handling infrastructure, including inland
grain terminals and port facilities. In India, Milltec performed

well as expected despite the impact of a late and below average monsoon.
"Weather and trade friction combined to impact sales and
PDUJLQLQWKH¿UVWKDOIRIDQGZHH[SHFWWKHVHFRQGLtions to persist into the back half of the year. Overall, management anticipates results in the second half of 2019 will
approximate the second half of 2018, despite near-term chalOHQJHVUHODWHGWRKLVWRULFDOO\SRRUFRQGLWLRQVLQWKH86DQG
the delays stemming from trade-related uncertainty in our international business."
The Canadian Commercial market remains active due to
continued investment in grain handling infrastructure, including port facilities and inland terminals, and AGI's Commercial
grain handling backlog remains at the high levels experienced
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and comparable to 2018 levels.
2൵VKRUH DV DQWLFLSDWHG WKH WLPLQJ RI FXVWRPHU FRPPLWments has resulted in a deferral of certain projects, and accordingly, the related revenue will be recognized later than
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tensions has aggravated the customer decision making proFHVVDVPDUNHWSDUWLFLSDQWVVHHNFODULW\SULRUWR¿QDOL]LQJLQvestment decisions.
Overall, Commercial sales order backlog is growing and is
currently higher than at the same time in 2018. Management anticipates international sales in the second half of 2019, net of acquisitions, to approximate 2018 levels, however revenue from
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On balance, AGI said its Farm business is faring well and
sales in the second half of 2019, though tempered by challenging conditions in North America, are expected to increase
over the prior year.

GSI offers larger diameter Z-Series bins
$668037,21,//,12,686²*6,¶VQHZIRRWGLDPHWHU=6HULHVELQZLWK)OH[ZDYH7HFKQRORJ\LVQRZDYDLODEOHWR
order from its dealer network.
The new model has up to 21 rings of 4-inch corrugation with
up to 47,000 bushels of storage capacity.
It features a bin cleanout system that uses large liners that inÀDWH DQG GHÀDWH WR JHQWO\ UHPRYH UHVLGXDO JUDLQ DIWHU D ELQ LV
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and eliminates the need to enter a bin to sweep or shovel out
remaining grain.
=6HULHV%LQVLQWURGXFHGODVWIDOOLQDQLQLWLDOIRRWGLDPHWHU
PRGHODUHDKLJKHUFDSDFLW\DQGPRUHFRVWH൵HFWLYHDOWHUQDWLYH
IRUVLPLODUVL]HGKRSSHUWDQNVZLWKFRQHERWWRPV*6,VDLG
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with 68,000 bushels of storage capacity that will be available
from dealers during the fourth quarter of this year.

The Z-Series bins use large liners that inflate and deflate to remove residual
grain. Photo courtesy of GSI.

72

October 2019 / World Grain / www.World-Grain.com
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World Grain - October 2019

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