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Nov 30, 2020
Lindsay Q1 2021 Earnings Report
Reported first quarter results with irrigation revenue and earnings growth, but faced short-term margin headwinds due to rising raw material costs.
Key Takeaways
Lindsay Corporation reported a slight decrease in revenue but net earnings were impacted by an income tax benefit. The irrigation segment saw revenue growth, while the infrastructure segment experienced a decline compared to a strong prior-year quarter. The company is facing rising raw material costs, which are creating short-term margin headwinds.
Irrigation market conditions improved, leading to stronger order flow, especially in the latter part of the quarter.
North America irrigation revenues decreased slightly due to lower engineering services revenue, offset by higher equipment volume.
International irrigation revenues increased due to higher unit sales volumes.
Infrastructure segment revenues decreased due to a large order in the prior year that did not repeat and lower road construction activity.
Lindsay
Lindsay
Lindsay Revenue by Segment
Lindsay Revenue by Geographic Location
Revenue by Segment
Irrigation Revenue
CapyFin.comInfrastructure Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Lindsay anticipates solid revenue growth for the second quarter, supported by a strong backlog of irrigation equipment orders in North America and improved activity in international irrigation markets. However, the company expects pressure on margins due to rising steel and freight costs until pricing actions are fully implemented. The timing of infrastructure projects remains difficult to predict due to coronavirus-related effects.
Positive Outlook
- Strong backlog of irrigation equipment orders in North America.
- Expect improved activity levels to continue in international irrigation markets.
- Encouraged by the quality of Road Zipper® sales funnel.
- Financial position remains strong.
- Supports innovation growth strategy.
Challenges Ahead
- Rapid and significant increases in steel and freight costs.
- These increases will pressure margins in the short term.
- The timing of infrastructure projects can be difficult to predict.
- Coronavirus-related effects on road construction activity.
- Pricing actions are not fully implemented yet.
Revenue & Expenses
Visualization of income flow from segment revenue to net income