Lindsay Posts Lower Q2 Earnings

reported a drop in its earnings for its fiscal second quarter. The Omaha, Nebraska-based company posted quarterly earnings of $9 million, or $0.75 per share, down from $13.5 million, or $1.04 per share, in the year-ago period. Its revenue declined to $141.1 million from $152.8 million. However, analysts were expecting earnings of $1.13 per share on revenue of $156.65 million. Total irrigation equipment revenue slipped 20% to $108.3 million from $135.9 million. U.S. irrigation revenue dropped 27% to $68.0 million, while international irrigation revenue fell 6% to $40.3 million. Gross margin rose to 28.0% of sales versus 27.9% of sales in the year-ago quarter. Operating expenses climbed $3.3 million year-over-year to $25.0 million in the second quarter. During the second quarter, Lindsay repurchased 224,307 shares for $19.4 million. At February 28, 2015, backlog of unshipped orders slipped to $74.3 million, versus $89.3 million at February 28, 2014. Rick Parod, president and chief executive officer, said, "While the longer term drivers to our markets remain positive, the cyclical contraction for irrigation equipment has continued. The U.S. irrigation market has been impacted by lower commodity prices and lower farm incomes, while international irrigation markets have remained more stable, although competitive pressure is increasing. The infrastructure segment made a significant contribution to the quarter with the installation of a Road Zipper System on the Golden Gate Bridge, and we remain optimistic about additional growth opportunities." Lindsay shares fell 1.72% to close at $79.97 yesterday.