AGI Reports Earnings for Q4, Year

Sales at Ag Growth International (AGI) increased by 44 percent compared to the quarter that ended Dec. 31. For the year, AGI reported a 20 percent sales increase.

In the farm segment, which includes grain, seed, and fertilizer handling equipment, aeration products, grain and fuel storage solutions, and more, sales grew 28 percent in Q4. Farm backlog is up 48 percent over the prior year.

AGI also said that drought in the Canadian Prairies led to a 27 percent reduction in backlog in the farm segment there.

The commercial segment, which includes, among other things, larger diameter grain storage bins, high-capacity grain handling equipment, seed and fertilizer storage and handling systems, sales increased 60 percent for the quarter. Backlog in commercial increased by 23 percent.

AGI made note of how supply chain challenges have affected the commercial segment.

“Many of AGI’s commercial platform contracts include provisions to pass along some or all of the key raw material cost increases,” the report said. “Open sales quotes are continuously reviewed and updated for changes in market conditions. Ongoing disruption of raw material, freight, and labor could lead to ongoing pressure on adjusted gross margin performance of the platform.”

Sales in the digital segment increased by 27 percent for the quarter.

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