Boosted by drought and high farm incomes, Omaha-based Lindsay Corp. had another record quarter of domestic and international sales of its irrigation systems.
The company cautioned, however, that forecasts of lower commodity prices could mean slowed growth.
Lindsay’s net income in the third quarter was $26.1 million, or $2.01 per diluted share, compared with $18.8 million, or $1.47 per diluted share, this time last year. Third-quarter revenue was a record $219.5 million, up 28 percent from $172.1 million last year.
President and CEO Rick Parod said population growth, expanded food production and demand for efficient water use provide a solid backdrop for long-term growth.
In the near term, Parod said, the company is expecting lower commodity prices because of larger harvests than during last year’s drought. Concerns about the quality of the crops, however, have cast doubt on that forecast, he said.
Total irrigation equipment revenue was $200.9 million, up 34 percent from $149.6 million last year. The increased demand resulted “from higher commodity prices and farm incomes along with robust demand in international markets,” the company said.
Domestic revenue in the third quarter was $118.3 million, up 12 percent, while international irrigation revenue was $82.6 million, up 88 percent.
Meanwhile, infrastructure revenue was $18.6 million, down 17 percent. Parod called the environment for infrastructure sales difficult as governments hold off on purchases. But he said recent sales trends showed modest growth.
Parod said the company expects more international revenue during the fourth quarter stemming from a $39 million order in Iraq.