Tag Archives: Water

Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its third quarter ended May 31, 2019.

Third Quarter Summary

Revenues for the third quarter of fiscal 2019 were $121.1 million, a decrease of $48.5 million, or 29 percent, compared to revenues of $169.6 million in the prior year third quarter. Approximately $27.2 million of the decrease in revenues was attributable to previously announced business divestitures in the irrigation segment as part of the Company’s Foundation for Growth initiative.

Net earnings for the quarter were $2.9 million, or $0.27 per diluted share, compared with net earnings of $10.4 million, or $0.96 per diluted share, for the same period in the prior year. In addition to the impact of lower revenues, net earnings for the quarter were reduced by after-tax costs of $2.6 million, or $0.23 per diluted share, related to the Company’s Foundation for Growth initiative. Excluding these additional costs, net earnings for the third quarter would have been $5.5 million, or $0.50 per diluted share. 1 Net earnings for the same period in the prior year, adjusted for Foundation for Growth costs, would have been $17.9 million, or $1.66 per diluted share. 1 Net earnings in the prior year included $1.5 million, or $0.14 per diluted share, related to the business divestitures.

“Low commodity prices and uncertainty regarding the outcome of trade negotiations continued to weigh on farmer sentiment and demand for irrigation equipment during the quarter,” said Tim Hassinger, President and Chief Executive Officer. “Along with that, strong Road Zipper System ® sales in the prior year third quarter resulted in a challenging year over year comparison.”

Segment Results

Irrigation segment revenues for the third quarter of fiscal 2019 were $98.6 million, a decrease of $29.8 million, or 23 percent, compared to $128.4 million in the prior year third quarter. Excluding the impact of the divestitures, North America irrigation revenues of $63.0 million increased $2.8 million, or 5 percent, compared to the prior year. Higher revenue from engineering project services and the impact of higher average selling prices were partially offset by lower irrigation equipment unit volume and lower sales of replacement parts. International irrigation revenues of $35.6 million decreased $5.4 million, or 13 percent, compared to the prior year. Excluding the negative impact of differences in foreign currency translation compared to the prior year, international irrigation revenues decreased $2.7 million, or 7 percent.

Irrigation segment operating margin was 11.2 percent of sales (11.7 percent adjusted) 1 in the third quarter, compared to 9.1 percent of sales (14.1 percent adjusted) 1 in the prior year. The prior year benefited from the recovery of $2.5 million in previously reserved accounts receivable that did not repeat. In addition, lower sales of irrigation equipment and replacement parts in North America resulted in a lower margin mix in the current quarter.

Infrastructure segment revenues for the third quarter of fiscal 2019 were $22.4 million, a decrease of $18.7 million, or 45 percent, compared to $41.2 million in the prior year third quarter. The decrease resulted almost entirely from lower Road Zipper System ® sales compared to the prior year’s period.

Infrastructure segment operating margin was 15.8 percent of sales (16.0 percent adjusted) 1 in the third quarter, compared to 34.6 percent of sales (35.0 percent adjusted) 1 in the third quarter of the prior year. The prior year period included high margin Road Zipper System ® orders that did not repeat in the current quarter.

The backlog of unshipped orders at May 31, 2019 was $42.5 million compared with $55.8 million at May 31, 2018. Approximately $12.4 million of the reduction in backlog resulted from business divestitures. Excluding the impact of the divestitures, irrigation segment backlogs were higher and infrastructure backlogs were lower compared to the prior year. Subsequent to the end of the quarter, a $15.0 million Road Zipper System ® order was received from a customer in Japan, with delivery expected to begin in the fourth quarter of fiscal 2019.

Foundation for Growth Initiative

In fiscal 2018, the Company announced a defined performance improvement initiative, referred to as Foundation for Growth, with the objectives of simplifying the business and achieving operating margin performance of 11 percent to 12 percent in fiscal 2020, assuming no improvement in market conditions from fiscal 2017.

Outlook

“Severe wet weather and widespread flooding in the U.S. have caused delayed corn plantings and curtailed planted acreage, reducing supply estimates and driving a recent increase in corn prices. Any further reduction in supply and increase in corn prices supports an improved outlook for irrigation equipment demand,” said Mr. Hassinger. “The short-term outlook for international markets remains mixed, with growth expected in Brazil and developing markets while certain other markets remain challenged.”

Mr. Hassinger added, “The receipt of a large international Road Zipper System order, along with early successes we are seeing in partnering with states on road construction projects, positions the infrastructure segment for growth. In addition, we expect that execution of our Foundation for Growth initiative will help us achieve our objective of delivering improved operating margins.”

MANHATTAN, Kan. – The extreme heat that hailed the end of June in Kansas combined with the heavy runoff from rains earlier in the month put many of the state’s waterways at risk to a waterborne toxin that could impact livestock and other animals around the farm.

Kansas State University veterinary toxicologist Steve Ensley said that the incidence of blue-green algae in farm ponds “has become more frequent in the last 15-20 years,” creating headaches for farmers who rely on those ponds to keep livestock hydrated during the hot, summer months.

When blue-green algae blooms, it creates a toxin that can affect the liver or the nervous system of animals that drink affected water. Animals may recover from toxins that affect the liver, but when they ingest toxins affecting the nervous system, those animals often die – sometimes within hours of exposure.

“There is no antidote for this toxin,” Ensley said. “If we have animals that look sick, we’ll try to do supportive care. If the damage is to the liver, there are things we can do to treat animals to get them over the initial damage they may have.”

But, he adds, “neurotoxins are very acute, so typically they lead to sudden death. In the last two years in Kansas, I have had grazing animals that have died…horses, cattle, sheep, goats and even dogs that swim in the water and drink as they’re swimming through the pond.”

Blue-green algae can form in a pond or other waterway from runoff that carries nitrogen or phosphorus into the body of water. The algae grow and bloom as temperatures reach 75 degrees or higher.

Farmers and others should be on the lookout for a blue, green or even orange color in the water. The bacteria will often give the impression of paint in the water, or a growth mat, according to Ensley. Blue-green algae is a threat to surface water only; it does not affect ground water. Well water typically is not affected.

“If you see something different about your pond or surface water, you need to investigate it,” Ensley said. “You need to get a sample taken and send it in to be tested.”

The Kansas State University Veterinary Diagnostic Lab can test water samples for blue-green algae, but Ensley said farmers can also work through their local veterinarian or extension agent.

Until water is confirmed safe, Ensley said farmers should keep animals away from the pond, and look for other ways to provide water to the herd.

“It takes about two weeks from when we see a bloom for it to get rid of the toxin,” Ensley said. “That’s kind of the guideline. Get them off that water for two weeks and then we can re-evaluate.”

For the future, Ensley noted that farmers can lessen the risk of toxins forming in their ponds by installing “as much grass and buffer strips between crop fields and surface water as possible so that we can slow down the movement of nitrogen and phosphorus into that water.”

Some short-term solutions to prevent algae blooms include installing solar-powered aerators to keep water moving; or adding water soluble dyes to the water, which block the amount of sunlight that can get to the pond.

For more information, talk with your local veterinarian or extension agent, or visit the K-State Veterinary Diagnostic Lab at www.ksvdl.org.