Lindsay posts fiscal 1st-quarter profit increase as cost cuts offset revenue decline

Lindsay fiscal 1Q profit rises despite lower sales

OMAHA, Neb. — Lindsay Corp., which makes agricultural irrigation systems and construction safety equipment, on Tuesday said its fiscal first-quarter profit rose 5.6 percent as cost controls more than offset a drop in revenue.

For the three months ended Nov. 30, the company earned $6.7 million, or 53 cents per share, up from $6.3 million, or 51 cents per share, in the year-ago quarter.

Revenue slipped 24 percent to $86 million from $113.1 million.

On average, analysts polled by Thomson Reuters expected profit of 24 cents per share on revenue of $77.4 million.

Irrigation equipment revenue dropped 38 percent to $53.3 million, while infrastructure revenue rose 20 percent to $32.7 million, due in part to a project in Mexico City.

The company said its backlog of unshipped sales was $36.1 million at quarter’s end, down from $40.1 million a year earlier.

Lindsay cut operating expenses by 13 percent from last year to $14.6 million, reflecting lower personnel costs. The company laid off about 100 workers in November 2008.

President and CEO Rick Parod said infrastructure spending remains uncertain because of delays in the passage of a new federal highway bill. Farmers are also reluctant to make capital equipment purchases, and demand for the upcoming irrigation season remains unclear.