Farm sales for AGI’s third quarter increased by 24 percent compared to the same quarter last year and 9 percent in a year-to-date comparison. Trade sales grew by 8.1 percent for the quarter.
President and CEO Tim Close said the quarter was a record “in terms of both sales and adjusted EBITDA with broad-based and robust performance across all platforms except for (North American) commercial, which has been hardest hit with COVID challenges.”
AGI took a $40 million accrual in the third quarter due to the collapse of a commercial grain storage bin manufactured by the company at a customer’s commercial project. The collapse was reported in September.
While “the cause of, and the responsibility for, the incident has not been determined, the company is taking this accrual, in accordance with accounting and other disclosure obligations, on the basis of potential required remediation to the equipment that was supplied by AGI to this commercial facility and one other facility,” information from the company said.
AGI expects the $40 million to be partially offset by insurance coverage and result in a lower net impact.
Member since 1996 | aggrowth.com | Source: AGI