Lindsay Q2 Profit Down; Results Miss Estimates - Quick Facts

(RTTNews) - Irrigation equipment maker Lindsay Corp. (LNN) said that its second-quarter net earnings declined to $13.5 million or $1.04 per share from $19.4 million or $1.50 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenues dropped to $152.8 million, from $175.5 million in the same prior year period. Seven analysts estimated revenues of $162.89 million for the quarter.

Total irrigation equipment revenues decreased 16 percent to $135.9 million from $162.7 million in the prior fiscal year's second quarter primarily due to lower crop prices. U.S. irrigation revenues of $92.8 million declined 21 percent while international irrigation revenues of $43.1 million decreased five percent. Infrastructure revenues increased 32 percent to $16.9 million with increases in all of its product lines.

Rick Parod, president and chief executive officer, said, "Irrigation sales declined in the second quarter driven by the lessening of drought conditions and the significant decline in agricultural commodity prices as compared to the same time last year. Lower grain prices and the political environment regarding Russia and Ukraine are likely to pressure irrigation demand in the second half of the year. Our focus for the balance of the year is on managing margins given the deleveraging impact, and maintaining momentum in the irrigation market."

While the company anticipates a decline from peak irrigation revenues for the near-term, drivers for the Company's markets of population growth, expanded food production and efficient water use, support its expectation for long-term growth. In addition, it is committed to expanding shareholder returns through the continued execution of our capital allocation plan, as outlined in January 2014.