AGCO Parts, a division of AGCO Corporation (AGCO - Free Report) , recently announced the expansion of its parts distribution center in Regina, Saskatchewan, to facilitate faster parts delivery to customers in Western Canada. The expansion work will be completed by early 2018.
This expansion is in sync with AGCO’s commitment to better serve the Western Canadian customers. The agricultural equipment maker stated that the development will improve its services to Western Canada by reducing transit times on large and heavy parts.
Notably, it will provide 50% more storage space, enabling greater breadth and depth of parts inventory by 30%. In addition, the expansion will increase the quantity of parts within an order shipped from Regina’s facility to over 90%.
AGCO continues to make strategic investments to refresh and expand its product lines, upgrade system capabilities, and improve factory productivity. The company intends to increase the level of investment in order to execute its product development plans.
Recently AGCO entered into an agreement with CP Foods to form a joint venture (JV) for manufacturing protein production equipment. AGCO will own 50% of the JV. This JV will significantly boost GSI’s Asian production capabilities.
For the long term, the company expects elevated grain demand, driven by population growth and increased protein consumption, which will result in favorable income levels for farmers. However, the company remains concerned about its farm income which remains under pressure.
AGCO has outperformed its industry with respect to price performance in a year’s time. The stock has gained 36.4%, while the industry recorded growth of 32.9%.
AGCO currently sports a Zacks Rank #1 (Strong Buy).
Other similarly-ranked stocks in the industrial products sector include Caterpillar Inc. (CAT - Free Report) , Kaiser Aluminum Corporation (KALU - Free Report) and Komatsu Ltd. (KMTUY - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Caterpillar has expected long-term earnings growth rate of 9.50%.
Kaiser Aluminum Corporation has expected long-term earnings growth rate of 15.00%.
Komatsu has expected long-term earnings growth rate of 6.20%.
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