Raven Industries Inc. (RAVN: Quote) Tuesday reported a lower second-quarter profit, despite a double-digit revenue growth, hurt mainly by "the continued volatility at aerostar unit." The news dragged down Raven shares by over five percent on the Nasdaq.
Sioux Falls, South Dakota-based Raven's profit dropped to $11.55 million or $0.32 per share from $12.46 million or $0.34 per share last year. Raven blamed the continued volatility in at its aerostar division for the 7 percent drop in second-quarter bottom line.
Aerostar's sales rose 15 percent but its operating income plunged 32 percent because of lower aerostat sales.
Chief Executive Daniel Rykhus said, "Our Aerostar Division has breakout potential, but it also is subject to significant variability due to federal spending. That's what we saw in the first fiscal quarter, and again in the second, as lack of aerostat orders impacted potential top-line gains,"
Sales at both the engineered films and applied technology units grew 13 percent year-over-year.
Raven's total sales for the second quarter grew 13 percent to $101.67 million from $90.34 million for the year-ago period.
"We continue to benefit from favorable market dynamics in agriculture and energy—and we're leveraging these trends to drive revenue gains in our Engineered Films and Applied Technology Divisions," said Rykhus.
RAVN is currently trading at $30.31, down $1.80 or 5.61%, on a volume of 0.3 million shares.
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by RTT Staff Writer
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