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Jun. 29, 2012 Source: Lindsay Corporation news release For the complete report, click here. Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its third quarter ended May 31, 2012. Nine Month Results Total revenues for the nine months ended May 31, 2012 were $423.4 million, a 17 percent increase from $362.8 million for the prior year's nine-month period. Total irrigation equipment revenues of $367.4 million increased 32 percent from a year ago, while infrastructure revenues decreased 33 percent to $56.1 million. The Company's operating income for the nine-month period was $52.8 million compared to $46.8 million during the same prior year period. Net earnings were $34.5 million or $2.70 per diluted share, as compared to $30.9 million, or $2.44 per diluted share for the prior year period. Fiscal 2012 operating costs included $7.2 million of expenses accrued in the Company's first fiscal quarter, or $0.37 per diluted share on an after tax basis, relating to an estimated increase in the Company's liability for environmental remediation at its Lindsay, Nebraska facility. Comparatively, fiscal 2011 included environmental remediation expense of $1.2 million, or $0.06 per diluted share after tax. Third Quarter Results Third quarter fiscal 2012 total revenues of $172.1 million increased 12 percent from $153.4 million in the same prior year period. Net earnings were $18.8 million or $1.47 per diluted share compared with $15.3 million or $1.20 per diluted share in the prior fiscal year's third quarter. Total irrigation equipment revenues increased 18 percent to $149.6 million from $126.9 million in the prior fiscal year's third quarter. Domestic irrigation revenues of $105.6 million increased 38 percent, while international irrigation revenues of $44.0 million decreased 12 percent as compared to the same prior year period. Infrastructure revenues decreased 15 percent to $22.5 million. Gross margin was 28.5 percent compared to 27.0 percent in the prior year's third quarter reflecting improvements in gross margins in both the irrigation and infrastructure segments. Irrigation gross margins increased as a result of favorable sales mix. Infrastructure margins increased due to improved product pricing in road safety and diversified products along with efforts to lower manufacturing costs. Operating expenses were $20.2 million in the quarter compared to $18.4 million in the third quarter of the prior fiscal year. The primary element of the expense increase related to personnel related costs including those associated with an acquired company purchased in fiscal 2011. Operating expenses were 11.8 percent of sales in the third quarter of 2012 compared with 12.0 percent of sales in the prior year period. Operating margins of 16.7 percent increased from 15.1 percent in the prior year period. Cash and cash equivalents of $119.8 million were $19.2 million higher compared with the end of the third quarter last year, while debt decreased $4.3 million over the same period. Lindsay's backlog of unshipped orders at May 31, 2012 was $44.5 million compared with $43.3 million at May 31, 2011 and $87.3 million at February 29, 2012. Outlook Rick Parod, president and chief executive officer, commented, "Farm incomes and commodity prices have driven positive farmer sentiment, leading to increased domestic irrigation demand. The increase in sales, along with cost reductions and efficiency improvements across our business segments have resulted in higher operating margins in the third quarter." Parod added, "The long term fundamentals of the business remain very positive, as growth drivers of expanded food production and efficient and environmentally friendly water use remain intact. Infrastructure demand will continue to be challenging and uncertain until global governments commit to more consistent investments in roads and other infrastructure." Tweet |
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