OMAHA, Neb. (AP) — Irrigation systems maker Lindsay’s fiscal second-quarter net income climbed 52 percent as drought conditions in the U.S. and higher commodity prices and farm incomes increased demand.
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The performance beat analysts’ estimates. Its shares rose more than 2 percent in premarket trading.
But President and CEO Rick Parod cautioned that expectations for record crop planting and improved yields are leading to projections of lower commodity prices, which could weaken demand for the rest of this year and into 2014.
For the three months ended Feb. 28, Lindsay Corp. earned $19.4 million, or $1.50 per share. up from $12.8 million, or $1 per share, a year earlier.
Analysts expected earnings of $1.29 per share, according to a FactSet poll.
Revenue rose 33 percent to $175.5 million from $132.1 million. Wall Street forecast $163.3 million in revenue.
Total irrigation equipment revenue increased 39 percent to $162.6 million. Domestic irrigation revenue rose 41 percent to $117.1 million, while international irrigation revenue climbed 34 percent to $45.5 million.
Infrastructure revenue fell 15 percent to $12.9 million.
Backlog of unshipped orders was $159.3 million at quarter’s end. This compares with $87.3 million for the prior-year period. Parod said in a statement on Wednesday that the improved backlog was due to continued strength in irrigation order volumes and a large Middle East irrigation project.
Lindsay, based in Omaha, Neb., also makes infrastructure and road safety products through its wholly owned subsidiaries, Lindsay Transportation Solutions and Snoline SPA.
Lindsay shares rose $1.92, or 2.1 percent, to $94.29 in premarket trading. They have traded in a 52-week range of $52.68 last June to $94.90 in late January.
