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Lindsay reports booming irrigation equipment sales

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Rising demand from South America, and the former Soviet Union, helped irrigation equipment seller Lindsay swing into profit, despite sluggish sales in North America, sending shares soaring in pre-market trade.

In the three months to February 28, Lindsay reported profits of $5.0m, or $0.47 per diluted share, compared with a net loss of $4.1m, or $0.37, at the same time a year ago.

This beat analyst expectations for earnings of $0.40 a share.

Revenues came in at $124.1m, compared to revenues of $120.6m in the prior year's second quarter, ahead of expectations of $119.1m.

Rising revenues

Revenues from Lindsay's irrigation segment rose some 3%, to $106.2m, despite a fall-off in US sales.

In the irrigation segment, orders and project levels improved in the second quarter after experiencing a slow start to the year in the first quarter," said Lindsay president and chief executive Rick Parod.

"Strong sales growth in international irrigation reflects improving demand and increased project activity," strong sales Mr Parid said.

US demand still sluggish.

"US irrigation revenues of $61.5m declined 15%, as harsh winter weather conditions in the Northwest resulted in lower irrigation equipment unit volume and lower revenue from other irrigation businesses," Lindsay said.

"We are currently in the midst of the primary selling season for irrigation equipment in North America where overall market conditions, affected by lower commodity prices and reduced farm incomes, are resulting in seasonal demand similar to the prior year," said Mr Parod.

But revenues from the company's overseas sales soared by 46%, to $44.7m.

Lindsay said the increase was "driven primarily by improved demand and project activity in South America, Africa and the Commonwealth of Independent States region".

By William Clarke

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