Lindsay Corp. (LNN), a manufacturer of irrigation equipment that farmers use to conserve water and energy, plans to buy back $100 million to $150 million in stock and said the company would double its dividend.
First-quarter fiscal 2014 revenue was almost unchanged from a year earlier as irrigation-equipment sales slid 4 percent in the period to $129.2 million, the Omaha, Nebraska-based company that acquired Claude Laval Corp. in August reported. U.S. irrigation revenue fell 18 percent from “drought-driven sales” last year while foreign irrigation revenues rose 32 percent, it said in a statement.
Total company revenue “remained at record levels in the first quarter while U.S. irrigation-market sales declined as anticipated” given the drop in agricultural commodity prices, Chief Executive Officer Rick Parod said in today’s statement.
“While we anticipate a decline from peak irrigation revenues for the near-term, drivers for the company’s markets of population growth, expanded food production and efficient water use support our expectation for long-term growth,’’ Parod said. Lindsay’s shares are almost unchanged from a year ago. The quarterly dividend will double to 26 cents a share.
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