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 LINDSAY, Neb., Jan. 6 /PRNewswire/ -- Lindsay Manufacturing Co. (NASDAQ-NMS: LINZ) today reported higher revenues and earnings for the first fiscal quarter ended Nov. 30, 1993. For the quarter, revenues were $25.6 million, up 3 percent from $24.9 million in the same period a year ago reflecting strong performances in domestic irrigation equipment and diversified manufacturing. Net earnings before the cumulative effect of a change in accounting for income taxes were $2.5 million, or 51 cents per share, up 6 percent from $2.3 million, or 48 cents per share, in the first quarter of fiscal 1993. Net earnings including the cumulative effect of the change in accounting for income taxes of $659,000, or 14 cents per share, were $3.1 million or 65 cents per share.
 "The domestic market for irrigation equipment continued strong," said Gary Parker, chairman, president and chief executive officer, "with sales up 85 percent over the same period a year ago due to favorable weather patterns during the 1993 fall harvest, stable agricultural commodity prices, low interest rates and farmers' continued focus on conservation of water, energy and labor resources. Diversified products also showed strong results with revenues up 39 percent reflecting both higher sales of tubular products and outsource manufacturing services. However, as expected, export irrigation equipment revenues were negatively affected by lower sales to dealers in Saudi Arabia as that country continues to experience a slowdown in its agricultural economy. As a result, international irrigation equipment revenues declined 43 percent when compared to the same period a year ago."
 Earnings increased at a faster rate than revenues as a favorable product mix, operating efficiencies and continued cost control measures improved margins. The gross profit margin for the quarter increased to 21.7 percent, up from 21.3 percent in the same quarter of the prior year, while the operating margin increased to 11.5 percent, up from 10.6 percent in the comparable period of the prior year.
 Lindsay's ongoing performance continues to build upon its strong financial position. At the end of the November quarter, stockholders' equity was $58.6 million, or $12.53 per share, up from $55.5 million, or $11.86 per share at fiscal year end August 1993. Cash and marketable securities totaled $49.7 million.
 "The outlook for the remainder of fiscal 1994 is mixed," said Parker. "We expect strong results in both domestic irrigation equipment and diversified products. However, exports will continue to be affected by the slowdown in Saudi Arabia.
 "In North America, conservation pressures continue to spur demand as farmers seek alternative methods of saving water, energy and labor resources. In addition, net cash farm income has been strong for the last several years and is estimated at $58 billion for 1993. As a result, farmers are in a strong financial position. We expect that this, coupled with current low interest rates, will continue to contribute to strong demand for center pivot irrigation systems in 1994.
 "While Latin America and Mexico show promise in the coming year, Saudi Arabia continues to account for the majority of our export sales. We expect the market in Saudi Arabia to remain uncertain, resulting in lower export revenues during 1994.
 "Finally, diversified product revenues continue to grow as we add additional customers and expand relationships with existing customers for our tubular products and outsource manufacturing services. For example, the second quarter of fiscal 1994 will be the first quarter in which we realize a full three months of revenue from our new outsource manufacturing customer, Ford New Holland Inc. As a result of these expanded customer relationships, we expect diversified product revenues to reach $16-$17 million for the full fiscal year up more than 20 percent from 1993."
 At Nov. 30, 1993, Lindsay's order backlog was $14.2 million down from $17.7 million a year earlier reflecting the lower export activity but not yet reflecting the stronger domestic market. In December, Lindsay's North American dealers experienced very strong order activity prior to an announced price increase which took effect January 1, 1994. As a result, the domestic irrigation equipment order backlog at Dec. 31, 1993, increased significantly from November and was more than double the level of a year ago.
 Lindsay is a leading manufacturer and the largest U.S. exporter of center pivot and lateral move irrigation equipment. The company also produces large diameter tubing and provides outsource manufacturing and production services for others. Lindsay has approximately 4.7 million shares outstanding which are traded on NASDAQ's National Market System under the symbol LINZ.
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 /CONTACT: Bruce Karsk of Lindsay Manufacturing, 402-428-2131; or media, Lise Needham, 415-986-1591, or analysts, Stephanie Mishra, 312-266-7800, both of the Financial Relations Board for Lindsay/

CO: Lindsay Manufacturing ST: Nebraska IN: AGR SU: ERN

TM -- SF009 -- 9640 01/06/94 08:33 EST
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Publication:PR Newswire
Date:Jan 6, 1994

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