Ag Growth posts profit, expects margins to stay strong
(Reuters) - Ag Growth International Inc (AFN.TO: Quote) posted a fourth-quarter profit on strong portable grain handling equipment demand in North America and said it expects gross margins to remain strong this year.
A bumper corn crop harvest in the United States and a return to normalized conditions in western Canada will drive demand, the maker of portable grain handling equipment said.
The International Grains Council in its latest update raised its global corn production forecast to 864 million tons.
Graphic on corn acres: link.reuters.com/dyz86s]
The USDA is currently forecasting that farmers in the United States will plant 94 million acres of corn this year, up from 92 million acres last year, Ag Growth said.
The company, which made its market debut in May 2004, said demand for commercial equipment remains strong in North America.
Ag Growth, which makes belt conveyors, handling accessories and aeration equipment, said interest in its storage bin product remains strong in the domestic as well as overseas markets. Continued...