Following a 2018 reversal in declining revenues from sales of irrigation equipment, managers at Lindsay Corp. (NYSE: LNN) had to report a 2019 return to the downward trend that has seen revenues fall $100 million over the past 5 years.
“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.
While improving year-over-year revenues by 16.1%, Lindsay Corp.’s weak domestic sales of irrigation systems appears to setting the tone for continuing soft business levels going into its new fiscal year.
While sales were up, Lindsay notes increased rainfall across the Corn Belt diminished the favorable impact of drought conditions on irrigation equipment demand over the past 12 months. The concern has now switched to the impact of delayed plantings and crop yields on crop prices and farm incomes.
Despite strong numbers in its second reporting period of 2013, Lindsay Corp., the Nebraska-based manufacturer of irrigation equipment for agriculture, isn’t at all sure the sales momentum will sustain itself through the remainder of the year.
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