Global agriculture sales of $282 million increased 87.2% year-over-year, due to higher volumes across all markets, particularly in North America, the Middle East and Brazil, favorable pricing and higher technology sales.
Revenues for the second quarter of fiscal 2021 were $143.6 million, an increase of $29.8 million, or 26%, compared to revenues of $113.8 million in the prior year second quarter.
Revenues for the year ended Aug. 31, 2020, were $474.7 million, an increase of $30.6 million, or 7%, compared to revenues of $444.1 million in the prior year.
Revenues for the third quarter of fiscal 2020 were $123.1 million, an increase of $2.1 million, or 2%, compared to revenues of $121.1 million in the prior year third quarter. Net earnings for the quarter were $10.1 million compared with net earnings of $2.9 million for the prior year third quarter.
“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.
The number of new irrigation systems popping up on land that previously was not irrigated suggests use of the equipment is on the rise, but analysts question whether or not irrigation equipment sales have reached their peak.
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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