“It was a disappointing operating quarter, as tepid irrigation volumes continue to weight on the top-line earnings,” is how C. Schon Williams, analyst for BB&T Capital Markets, described Lindsay Corp.’s most recent earnings release.
Figures released by the Assn. of Equipment Manufacturers on July 10 showed that, while large ag equipment sales declined again in June, inventory of these products on dealers’ lots continued to increase.
With USDA’s May 9 World Agricultural Supply and Demand Estimates report calling for higher corn and soybean yields and production, prices for the two commodity crops are expected to tumble throughout the year.
Corn prices got at least a short reprieve from its 40% decline from a year ago on the news that USDA lowered ending stocks to 13.9 billion bushels, a drop of 64 million bushels from previous estimates.
Deere & Co. announced on September 3 that it would review strategic options for its irrigation operations known as John Deere Water. In other words, Deere is looking to get out of the drip irrigation business.
Citing a “large boost” in Lindsay Corp.’s irrigation equipment backlog as well as a 62% year-over-year growth in the fourth quarter for industry rival, Valmont, C. Schon Williams, analyst for BB&T Capital Markets, said in a note that the major players in irrigation systems are looking at “significant revenue growth for the rest of the year.”
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In this episode of On The Record, we examine Deere’s Population of 20-Store Dealers On the Rise. In the Technology Corner, we take a look at Carbon Robotics Developing New “Thinning” Function for LaserWeeder. Also in this episode: AGCO & Kubota Sign Right to Repair MOUs, Deere Reports Rising Large Ag Price Realization - Lower Production Costs and Dealers’ Most Pressing Concerns.