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LINDSAY MANUFACTURING REPORTS THIRD QUARTER AND NINE MONTH RESULTS ENDED MAY 31

 LINDSAY, Neb., June 29 /PRNewswire/ -- Lindsay Manufacturing Co. (NASDAQ-NMS: LINZ) today reported higher earnings for the third quarter ended May 31, 1993, as gross margin expansion and lower operating expenses more than offset a decline in revenue for the quarter. Reflecting the slow first quarter, year-to-date results continue below those of a year ago.
 For the third quarter, net earnings were $3.6 million, or 75 cents per share, up 12 percent from $3.2 million, or 67 cents per share, in the third quarter of 1992. Revenues were $27.5 million, compared with $30.7 million in the quarter a year ago. "North American irrigation equipment sales were up 15 percent, $2.6 million, versus the third quarter of last year. And, diversified manufacturing continued to show gains for the third consecutive quarter, with revenues up $1.3 million, 58 percent. However, a 71 percent drop, $7.1 million, in export irrigation equipment sales more than offset these gains," said Gary Parker, chairman, president and chief executive officer.
 "1992 was an exceptionally strong year for export sales," Parker explained. "This year, sales have lagged as the Saudi government has been slow in taking delivery of wheat and in making agricultural payments to farmers. While we expect to see some improvement in this market in the fourth quarter, as compared to the quarter just ended, we anticipate full year fiscal 1993 revenues from Saudi will lag those of fiscal 1992. For the longer term, Saudi remains one of our most important markets and we are well positioned to capitalize on future market advances. We view Saudi as a strong but mature market which will experience fluctuations in demand from time to time."
 The gross margin for the quarter improved reflecting a favorable pricing environment, a favorable product mix, continued productivity gains in manufacturing and stable raw material prices. For the quarter, Lindsay achieved a gross margin of 26.2 percent, up from 23.3 percent in the same period a year ago. Lower operating expenses and a lower effective tax rate contributed to an even greater improvement in the net margin to 13.3 percent, up from 10.6 percent in the quarter a year ago. "The ongoing expansion in margins is due in large part to our continuous improvement efforts," said Parker. "We are committed to incremental improvement of all processes and ongoing cost and expense controls. However, looking forward, we expect to see cost increases in selected raw materials during the fourth quarter that will impact our margins."
 For the nine months, net earnings were $8.2 million, or $1.69 per share, compared with $8.5 million, or $1.75 cents per share, in the same period of the prior year. Year-to-date revenues are $73.9 million, compared with $83.1 million in 1992.
 "Looking ahead, stronger North American irrigation equipment order flow and increased demand for outsource manufacturing services have both contributed to backlog at the end of the third quarter. However, these increases have been more than offset by a soft export irrigation equipment market. As a result, the order backlog at the end of the quarter was $21.3 million, down from $28.6 million at this time last year. This is up, however, from $18.3 million at the end of the second quarter illustrating an ongoing seasonal strengthening of demand."
 Continued solid operating performance contributed to Lindsay's financial strength. At May 31, 1993, shareholders' equity was $53.0 million, or $11.32 per share up from $44.4 million, or $9.52 per share, at the beginning of the year. Cash and marketable securities balances of $45.8 million continue to provide the company with considerable operating flexibility.
 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.
 -0- 6/29/93
 /CONTACT: Bruce C. Karsk of Lindsay Manufacturing Company, 402-428-2131, or Michael Rosenbaum of FRB Chicago, 312-266-7800, or Lise Needham of FRB San Francisco, 415-986-1591, both for Lindsay Manufacturing Company/
 (LINZ)


CO: Lindsay Manufacturing Company ST: Nebraska IN: MAC SU: ERN

TM -- NY008 -- 6566 06/29/93 09:01 EDT
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Date:Jun 29, 1993
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