Lindsay corp's 1st half revenues down 13%

Date:04-10-2019

*International irrigation revenues increased 15 percent led by project sales in developing markets

*North America irrigation market conditions worsen as trade concerns weigh on farmer sentiment

*Infrastructure revenues decreased 27 percent on lower Road Zipper System sales

Lindsay Corporation, a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its second quarter ended February 28, 2019.

Second Quarter Summary

Revenues for the second quarter of fiscal 2019 were $109.2 million, a decrease of $21.2 million, or 16 percent, compared to revenues of $130.3 million in the prior year's second quarter. Approximately $19.6 million of the total decrease in revenues was attributable to previously announced business divestitures in the irrigation segment as part of the Company's Foundation for Growth initiative.

The Company incurred a net loss for the quarter of $3.4 million, or $0.32 per diluted share, compared with net earnings of $1.7 million, or $0.16 per diluted share, for the same period in the prior year. In addition to the impact of lower revenues, net earnings for the quarter were reduced by after-tax costs of $3.7 million, or $0.34 per diluted share, related to the Company's Foundation for Growth initiative. Excluding these additional costs, net earnings for the second quarter would have been $0.2 million, or $0.02 per diluted share.1 Net earnings for the same period in the prior year adjusted for these costs, plus the tax expense attributable to enactment of the U.S. Tax Cuts and Jobs Act, were $6.0 million, or $0.56 per diluted share.1

"North America irrigation sales volumes were significantly lower than anticipated as the unresolved US-China trade dispute contributed to a further decline in farmer sentiment," said Tim Hassinger, President and Chief Executive Officer. "Along with that, lower Road Zipper System® sales contributed to a disappointing quarter. We were however pleased to see an increase in our international irrigation sales compared to the prior year."