The company reported adjusted profit of C$39.4 million, up from C$36.9 million a year earlier. Total trade sales for the year were C$755.6 million, up from C$546.6 million in 2016.
AGI's Farm trade sales increased by 47% as a robust Canadian Farm market was complemented by improving market conditions in the U.S. and the May 2017 acquisition of Global Industries, Inc.
Commercial trade sales increased by 29%, the result of higher international sales and contributions from 2016 acquisitions that expanded AGI's Commercial product offering and diversified its geographic reach and customer base.
|Tim Close, president and chief executive officer of AGI|
“We achieved record results in 2017 but more importantly we completed key initiatives to facilitate our continued growth as we solidified our fertilizer platform, completed our build in Brazil, invested in our engineering resources, added to our Farm and Commercial product lines and grew our presence in key markets,” said Tim Close, president and chief executive officer of AGI.
Looking to 2018, AGI said Commercial sales in Canada are expected to increase significantly due to strong demand for grain and fertilizer storage and handling facilities. The existing Canadian Commercial sales order backlog includes a significant portion of the total anticipated sales in 2018.
In the U.S., Commercial activity is expected to approximate 2017 levels due to ongoing maintenance capital expenditure programs and investments to increase capacity and productivity, AGI said. In addition, U.S. tax reform in 2018 may encourage capital investment.
AGI's Farm business in 2018 is expected to benefit from increased demand in the U.S. for both portable grain handling equipment and grain storage systems. U.S. Farm sales are expected to increase due to pent-up demand, the result of under-investment in equipment over the last several years, and market expectations for another year of significant planted acreage.
In Canada, demand is expected to continue to benefit from positive markets, however a dry and early harvest in certain areas has resulted in a degree of carryover in dealer inventory, and Canadian Farm sales in fiscal 2018 may not reach the record sales of 2017.