Ag Growth Announces Record Second-Quarter Results

Ag Growth reported its trade sales and adjusted EBITDA reached record highs in the three and six months ended June 30, 2014, as favorable crop conditions in North America and continued investment in ag infrastructure lead to robust demand for on-farm and commercial grain handling, storage and aeration equipment, said Marketwatch.com.

Demand for commercial grain handling equipment remained strong due to investment in capacity and efficiency upgrades in North America and in response to a significant storage and handling infrastructure deficit in many overseas markets. As a result, first half sales hit record levels in all areas, with Canadian sales 35% above 2013 and 17% over the previous record, U.S. sales 27% higher than 2013 and 19% over the previous record, and international sales 26% higher than 2013 and 7% over the previous record. AGI continued to grow its offshore footprint in the first half of 2014 with higher sales and committed business in a number of regions including Ukraine, Latin America and Asia-Pacific.

AGI’s international business has grown substantially in recent years, and committed international business as of June 30 is significantly higher compared to the prior year. In 2014 management expects to transact significant business in Eastern Europe, particularly Ukraine. Current political volatility in the region, however, could delay the shipment of committed orders and may defer new business.

The company noted that the situation in Ukraine is fluid, and, to date, customers have not changed their views regarding capital projects. This may change if the situation worsens.

Ag Growth International—Association member since 2005; aggrowth.com. S