Ag Growth Reports Profitable 4Q

Ag Growth International (AGI), said it returned to profitability during its fourth quarter, largely on the strong activity of its North American distribution network. For the three months ended December 31 the company posted net income of $3.3 million, up from a net loss of $379,000 a year ago. Total revenues rose 36% to $67.0 million, from $49.4 million in the same period a year ago.

AGI president and CEO, Gary Anderson said, “We are very pleased with our fourth quarter results. Strong preseason sales of portable equipment in both Canada and the U.S. provide an indication that our dealer network is looking to 2012 with optimism. Strong demand for commercial equipment continued into the fourth quarter and as result we achieved record domestic commercial sales in 2011. The positive results from Q4 were not enough, however, to offset the negative impacts of foreign exchange, poor regional conditions at Mepu and the start-up issues at Twister experienced throughout the year.”

For the fourth quarter, the company said its increased sales were a direct result of higher demand for its portable grain handling equipment, as its dealer network replenished inventory. Higher commercial handling equipment domestically and higher storage bin sales internationally also bolstered results.

Gross profit margins for the quarter shed 300 basis points to 33%, from 36% a year ago. For the full year fiscal 2011, the company posted a 20% decline in profits, to $24.5 million, or $1.95 per share. Revenues, however, rose 15% to $301.0 million.

Ag Growth, Association member since 2005; aggrowth.com.