Art’s-Way Manufacturing recently announced its consolidated corporate sales for the 3- and 6-month periods ended May 31, 2021, were $5,710,000 and $11,111,000, respectively, compared to $5,446,000 and $10,472,000 during the same respective periods in fiscal 2020. This represents a $264,000, or 4.8%, increase for the 3 months and a $639,000, or 6.1%, increase for the 6 months. Increases are due to increased demand in Art’s Way’s agricultural products and tools segments.
Second quarter sales in the company’s agricultural products segment were $3,858,000 compared to $3,071,000 during the same period in fiscal 2020, an increase of $787,000, or 25.6%. Year-to-date agricultural product sales were $7,357,000 compared to $6,023,000 during the same period in fiscal 2020, an increase of $1,334,000, or 22.1%. The company attributes the large increase in revenue to a strengthening agricultural economy that is “producing 5-10 year highs in commodity and livestock prices” along with government assistance programs that provided farmers with government assistance during the COVID-19 pandemic. The company saw a 65% increase in grinder mixer sales year-over-year and is showing a 25% increase in manure spreader sales year-over-year.
The company’s backlog continues to be strong heading into the third quarter of fiscal 2021, and Art’s Way anticipates improved results for the second half of fiscal 2021. However, the company has seen lead times increase on raw materials and components as suppliers in the supply chain struggle to keep up with demand. Fulfillment of the company’s backlog will be contingent on whether suppliers are able to deliver or not. The company has seen rising costs for virtually all raw material and components that go in its products and in turn has increased prices twice in fiscal 2021 to offset these rising costs.
Consolidated net income was $64,000 for the three-month period ended May 31, 2021, compared to net loss of $(802,000) for the same period in fiscal 2020. Consolidated net loss for the 6 months ended May 31, 2021, was $(251,000) compared to $(1,239,000) in the same period in fiscal 2020.