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LNN

Lindsay Corp. Reports 5% Revenue Drop

Lindsay Corp. said fiscal third-quarter revenue fell 5% to $160.8 million from $169.5 million a year earlier, as weaker irrigation sales more than offset gains in infrastructure.

Net earnings declined 19% to $15.8 million from $19.5 million, and diluted earnings per share fell to $1.53 from $1.78. Operating income dropped 22% to $18.5 million from $23.8 million, while operating margin narrowed to 11.5% from 14.0%.

The irrigation segment posted third-quarter revenue of $133.0 million, down 7% from $143.7 million. North America irrigation revenue fell 11% to $61.3 million from $69.1 million, and international irrigation revenue declined 4% to $71.7 million from $74.7 million. Irrigation operating income decreased 25% to $20.3 million from $27.2 million, with margin sliding to 15.3% from 18.9%.

Within international irrigation, Brazil sales were down on lower volume, though foreign-currency translation added about $3.9 million of benefit versus a year earlier.

The infrastructure segment generated $27.7 million of revenue, up 8% from $25.7 million, led by higher road safety product sales. Operating income was unchanged at $5.4 million, but margin slipped to 19.5% from 21.1%.

Backlog at May 31 rose to $136.1 million from $117.1 million a year earlier. Of that, $20.1 million was tied to orders not expected to be fulfilled within the next 12 months, compared with $12.3 million a year earlier.

During the quarter, Lindsay repurchased $25.2 million of stock, bringing fiscal-year repurchases to $80.7 million. As a result of these announcements, the company's shares have moved -0.36% on the market, and are now trading at a price of $120.63. For the full picture, make sure to review LIND's 8-K report.

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