Lindsay Corporation (NYSE: LNN) has reported its third-quarter fiscal 2024 results, showing a 15% decrease in total revenues to $139.2 million compared to $164.6 million in the same period last year. Operating income also decreased by 26% to $19.9 million from $27.0 million, with an operating margin of 14.3%, down from 16.4% in the prior year quarter.
In the irrigation segment, revenues were down by 19% to $114.8 million, with operating income decreasing by 36% to $19.5 million. The North America irrigation revenues were $68.2 million, a 9% decrease, while international revenues saw a significant 31% decline to $46.6 million.
On the other hand, the infrastructure segment witnessed an 11% increase in revenues to $24.4 million, leading to a 76% increase in operating income to $6.3 million. The backlog of unfilled orders as of May 31, 2024, stood at $246.9 million, up from $94.5 million in the prior year.
The company's diluted earnings per share stood at $1.85, a 21% increase from $1.53 in the prior year quarter. This increase was driven by higher other income, including an income tax credit in Brazil of $4.8 million.
Lindsay Corporation's President and CEO, Randy Wood, highlighted the challenges faced in the irrigation segment due to market conditions in North America and Brazil. However, he expressed optimism about the company's infrastructure business, citing the successful execution of a large multi-year international irrigation supply agreement valued at over $100 million.
The company completed $17.9 million in share repurchases during the quarter, aligning with its capital allocation priorities to enhance shareholder value.
Looking ahead, Wood mentioned that the company expects demand in North America and Brazil to remain tempered, while anticipating continued growth in developing international markets driven by the need to address food security.
Lindsay Corporation's fiscal 2024 third-quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors can participate in the call or access the live webcast via the company's investor relations section on its website.
Lindsay Corporation, established in 1955, is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, aiming to meet the food, fuel, fiber, and transportation needs of the world's growing population. Today the company's shares have moved 11.8% to a price of $126.6. For more information, read the company's full 8-K submission here.
