WINNIPEG, MANITOBA, CANADA — Ag Growth International, Inc. said on Oct. 16 that its third-quarter results will include a pre-tax charge of C$7 million related to the cost of rework for equipment supplied to two projects.
The charge relates to additional, time, material and services required to ensure the projects meet AGI’s high standard for quality, the company said.
Before taking into account the charge, management anticipates second-half adjusted EBITDA will approximate 2018 levels.
“Accountability is a core principle at AGI,” said Tim Close, president and chief executive officer of AGI. “We are incurring this charge to stand behind our partnership with our customers. We complete hundreds of projects globally each year and complete each one with a focus on our customers. The cause of this rework has been identified, quarantined, and mitigated. Additional policies, procedures and appropriate changes have been made to ensure this is a one-time event. Our global product and projects teams are better than ever, and we will continue to build the expertise that earns the confidence of our customers.”