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Ag Growth International Inc T.AFN

Alternate Symbol(s):  AGGZF | T.AFN.DB.H | T.AFN.DB.G | T.AFN.DB.I | T.AFN.DB.J

Ag Growth International Inc. is a provider of the equipment and solutions required to support the storage, transport, and processing of food globally. The Company provides equipment solutions for agriculture bulk commodities, including seed, fertilizer, grain, rice, feed, and food processing systems. It has manufacturing facilities in Canada, the United States, Brazil, Italy, France, and India and distributes its products globally. Its segments include Farm and commercial. Its Farm segment focuses on the needs of on-farm customers, and its product offerings include grain, seed, and fertilizer handling equipment; aeration products; grain and fuel storage solutions, and grain management technologies. Its Commercial segment focuses on commercial entities, such as port facility operators, food processors and elevators. Its product offerings include larger diameter grain storage bins and high-capacity grain handling equipment; food and feed handling storage and processing equipment.


TSX:AFN - Post by User

Post by SunsetGrillon Nov 12, 2020 5:33pm
925 Views
Post# 31887423

Bin Failure - Possibly not their problem

Bin Failure - Possibly not their problem$1.62 blew away TD guidance of $0.56 (but that may be taking into account bin failure cost). Will post TD and Scotia comments tomorrow. (But i think TD no longer covers)

This was encouraging from the press release

The Hopper was first sold to a customer for use in a frac sand operation, a niche application. This customer purchased two Hoppers. AGI was not retained to construct and install the Hoppers. Rather, the Hoppers were constructed and installed by an independent third party. One of these two Hoppers failed during start-up of the facility. An investigation was commenced immediately and is currently ongoing. This failure prompted AGI to conduct additional and robust reviews of the Hopper design.  While the cause of the failure has not yet been identified, AGI's review indicates that there were clear indications of improper construction and installation of the Hopper at this facility that led to or contributed to this failure.
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