Lindsay Corporation’s fiscal second quarter brought a sharp drop in revenue and profit as weaker irrigation demand and a smaller infrastructure project mix offset growth in road safety products.
Total revenue fell to $157.7 million from $187.1 million a year earlier, down $29.3 million or 16%. Operating income declined to $13.0 million from $32.1 million, a drop of $19.1 million or 59%. Operating margin narrowed to 8.3% from 17.2%.
Net earnings were $12.0 million, down from $26.6 million in the prior-year quarter. Diluted earnings per share fell to $1.15 from $2.44.
The irrigation segment generated $141.2 million in revenue, down $6.9 million or 5% from $148.1 million. North America irrigation revenue fell 8% to $71.0 million from $77.1 million, while international irrigation revenue slipped 1% to $70.2 million from $71.0 million.
Irrigation operating income dropped to $19.5 million from $27.4 million, a decline of $7.9 million or 29%. Segment margin fell to 13.8% from 18.5%.
In infrastructure, revenue dropped to $16.5 million from $38.9 million, down $22.4 million or 58%. Operating income plunged to $1.2 million from $13.3 million, a decline of $12.1 million or 91%. Margin contracted to 7.1% from 34.1%.
The backlog at Feb. 28 rose to $151.8 million from $127.0 million a year earlier. Of that, $19.2 million was not expected to be fulfilled within the next 12 months, compared with $11.9 million a year earlier.
During the quarter, Lindsay began deliveries on an $80.0 million irrigation and technology project in the Middle East and North Africa region. The company said it had completed $25.2 million of share repurchases in the quarter, bringing fiscal-year repurchases to $55.5 million. As a result of these announcements, the company's shares have moved -0.03% on the market, and are now trading at a price of $120.51. If you want to know more, read the company's complete 8-K report here.
