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Farmers Protect Against Drought with Mechanized Irrigation, Move from Gravity Irrigation to Center Pivot Systems: Expert Analyst C. Schon Williams Discusses the Agricultural Machinery Segment with TWST

67 WALL STREET, New York - August 27, 2013 - The Wall Street Transcript has just published its Water Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Water Infrastructure Development - Irrigation and Metering Technology - Water Industry Consolidation - Regulatory Headwinds for U.S. Utilities

Companies include: Lindsay Corporation (LNN), Valmont Industries, Inc. (VMI), Deere & Co. (DE) and many more.

In the following excerpt from the Water Services Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Looking specifically at Valmont and Lindsay, what differentiates them?

Mr. Williams: Certainly they would argue that the service that they bring to the table, the dealer network, the quality of the product differentiates them, and they do have strengths and weaknesses within that. If you look at the market as a whole, however, it is largely dominated by Lindsay and Valmont. They control about 70%, 75% of the entire market. There are other private players that are out there, but no one sizable.

When you go overseas, it's a much more fragmented market. In China you may be talking about 10 or 15 different players. Certainly there's a value that each delivers in terms of the service, the dealer network that they have. Essentially all their product is sold through local dealers that are exclusive to either the Lindsay or Valmont brand. Each would argue that their dealer provides better service, but at the end of the day, Valmont is slightly larger than Lindsay, has a stronger international presence, and Valmont is viewed as the founder of the center pivot.

TWST: Are we looking at anyone poised to come into the market to take share from Valmont and Lindsey?

Mr. Williams: No. There are a few other smaller players here in the U.S. that are private right now. They are just not large enough to justify public funding. We may be talking about a Chinese company over time being publicly listed on the Chinese market, that's possible, but at this point it's a fairly static market. It has been a fairly static market share really for the last, call it 10, 15 years.

It is very tough for a new player to emerge because of the dealer network we talked about. If the Chinese wanted to come in, for example, they would have difficulty because they would not have that same established dealer network that could service that machinery. Farmers are very cognizant of that. If they know they are going to buy a system and have to wait a couple days...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.