Lindsay Corporation (LNN) has reported 87.43 percent plunge in profit for the quarter ended Nov. 30, 2016. The company has earned $0.87 million, or $0.08 a share in the quarter, compared with $6.94 million, or $0.62 a share for the same period last year. Revenue during the quarter dropped 9.24 percent to $110.39 million from $121.62 million in the previous year period. Gross margin for the quarter contracted 259 basis points over the previous year period to 25.70 percent. Total expenses were 97.52 percent of quarterly revenues, up from 90.34 percent for the same period last year. That has resulted in a contraction of 718 basis points in operating margin to 2.48 percent.
Operating income for the quarter was $2.74 million, compared with $11.75 million in the previous year period.
Rick Parod, president and chief executive officer, commented, "The prolonged recession in agricultural markets is weighing on farmer sentiment toward capital goods purchases. Our first fiscal quarter is between selling seasons, during harvest in North America, and revenue for the period is usually not indicative of the next full season. Farmers are generally assessing results and developing planting plans for the next season during the quarter. We believe farmers are taking a wait and see approach and deferring purchases in the current environment. First quarter performance in the irrigation segment was negatively impacted by low volume and resulting cost deleverage in our operations. The infrastructure segment continues to maintain solid performance as market activity reflects improving demand."
Operating cash flow falls marginallyLindsay Corporation has generated cash of $8.10 million from operating activities during the quarter, down 4.69 percent or $ 0.40 million, when compared with the last year period. The company has spent $1.42 million cash to meet investing activities during the quarter as against cash outgo of $4.24 million in the last year period.
The company has spent $3.77 million cash to carry out financing activities during the quarter as against cash outgo of $13.08 million in the last year period.
Cash and cash equivalents stood at $103.06 million as on Nov. 30, 2016, down 20.27 percent or $26.20 million from $129.26 million on Nov. 30, 2015.
Debt remains almost stable
Total debt of Lindsay Corporation remained almost stable for the quarter at $117.12 million, when compared with the last year period. Interest coverage ratio deteriorated to 2.26 for the quarter from 9.82 for the same period last year.
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