WASHINGTON (dpa-AFX) - Irrigation equipment maker Lindsay Corp. (LNN) Wednesday reported a decline in second-quarter profit, reflecting lower revenues and higher expenses. Earnings per share as well as revenues missed analysts' estimates.
According to the firm, lower grain prices and political environment related to Russia and Ukraine are likely to pressure irrigation demand in the second half of the year.
For the second quarter ended February 28, 2014, the company's net earnings declined to $13.45 million or $1.04 per share from $19.35 million or $1.50 per share in the prior year.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.
Operating revenues dropped to $152.80 million from $175.54 million in the same period last year, and came below analysts' estimate of $162.89 million.
Total irrigation equipment revenues declined 16 percent to $135.9 million, mainly due to lower crop prices. U.S. irrigation revenues fell 21 percent, and international irrigation revenues were down 5 percent from last year.
Meanwhile, Infrastructure revenues increased 32 percent, with increases in all of its product lines.
Total operating expenses were $21.76 million, higher than $20.92 million in the previous year. The increase included $2.2 million associated with Lakos acquisition, the company said.
Operating margins were 13.7 percent, compared to 16.8 percent in the prior-year period.
Backlog of unshipped orders as at February 28, 2014 was $89.3 million, lower than $159.3 million at February 28, 2013.
Looking ahead, Rick Parod, president and chief executive officer of the company said, 'While we anticipate a decline from peak irrigation revenues for the near-term, drivers for the Company's markets of population growth, expanded food production and efficient water use, support our expectation for long-term growth.'
LNN closed Tuesday's regular trading at $80.37 on the NYSE.
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