) unit Grain Systems, Inc. has purchased Marshall, Mich.-based
Johnson System Inc., a leader in structural steel manufacturing
with a focus on the agricultural industry.
Established in 1983, Johnson System manufactures towers,
catwalks, temporary storage systems, aeration systems, super
structures, decks, stair systems, bean ladders and numerous other
agricultural products. Johnson System's manufacturing operation
in Marshall and its 70 employees will come under the wing of
Grain Systems is the world's largest manufacturer of steel farm
grain bins and also provides grain drying, grain conditioning,
and material handling. Grain Systems is a unit of GSI Group,
which was acquired by AGCO for $940 million in Nov 2011. GSI
Group is a leading manufacturer of grain storage and protein
production systems. The acquisition propelled farm equipment
maker AGCO into the grain storage and livestock industries - in
line with its vision of expanding its product offerings and
entering new markets. Grain storage and protein production
systems accounted for approximately 7% of AGCO's net sales in
The Johnson System acquisition will provide AGCO with new growth
opportunities that will offer its dealers system solutions to
enhance productivity, efficiency and profitability of their
customers' operations. AGCO will also benefit from Johnson
System's over 30 years of experience in the grain handling
business and full line of reputed products and custom design
options that meet the unique and specific needs of any project.
AGCO remains committed to its plans of expanding its business in
domestic and international markets. It expects elevated
agricultural commodity prices in 2013 to support healthy farm
income and sustain equipment demand. However, growth in South
America and North America is expected to be offset by modest
declines in Western Europe. Global industry demand is expected to
be relatively flat in 2013 compared with 2012.
AGCO expects gross margin to improve in 2013 compared with 2012,
but it may be somewhat affected by increased market
development expenses and higher engineering expenditures to meet
Tier 4 final emission requirements. AGCO currently retains a
short-term Zacks Rank #3 (Hold).
Duluth, Ga.-based AGCO is a global leader focused on the design,
manufacture and distribution of agricultural machinery. AGCO
supports more productive farming through a full line of tractors,
combines, hay tools, sprayers, forage equipment, tillage,
implements, grain storage and protein production systems, as well
as related replacement parts.
Other companies in the machinery and farming industry are
Alamo Group, Inc.
). While Alamo Group and Kubota Corporation sport a Zacks Rank #1
(Strong Buy), Lindsay holds a Zacks Rank #2 (Buy).
AGCO CORP (AGCO): Free Stock Analysis Report
ALAMO GROUP INC (ALG): Free Stock Analysis
KUBOTA CORP ADR (KUBTY): Get Free Report
LINDSAY CORP (LNN): Free Stock Analysis
To read this article on Zacks.com click here.