(RTTNews) - Wednesday, Irrigation equipment maker Lindsay Corp. (LNN: News ), reported a sharp drop in fourth quarter profit, reflecting a 50% decline in revenue as farmers continued to remain cautious about making investments in capital goods. On a per share basis, earnings plunged and that came below Wall Street consensus.

Lindsay's net income decreased to $2.1 million from $11.3 million in the year-ago period. On a per share basis, net income declined to $0.17 from $0.90 in the year-ago period. On average, 5 analysts polled by Thomson Reuters expected earnings of $0.35 per share. Analysts' estimate typically excludes one-time items.

Revenues were $73.4 million, down 50% from $147.2 million in the year-ago quarter. Analysts were looking for revenue of $85.90 for the quarter.

Total irrigation equipment revenues decreased 53% to $54.8 million from $115.2 million in the last year. Domestic irrigation revenues were down 59%, while international irrigation revenues decreased 41%. Infrastructure revenues declined 42% to $18.6 million from $32 million in the prior year period.

Gross margin for the fourth quarter was 24% compared with 25.4% in the year-ago period primarily due to unfavorable infrastructure product mix.

Lindsay's operating expenses decreased $3.9 million to $14.1 million compared to the the prior-year quarter.
For the fiscal year ended August 31, net income declined to $13.82 million or $1.11 per share from $39.4 million or $3.20 per share last year. Total revenues decreased 29% to $336.2 million from $475.1 million for the prior year.

Operating expenses for the full-year decreased $3.4 million to $58.2 million compared to last year, primarily attributable to lower personnel related costs.

Rick Parod, president and chief executive officer, said, "Updated USDA estimates predict net farm income for 2009 well below last year's record and 15% below the ten year average. We continue to control expenditures, and our focus on cash flow has resulted in cash and cash equivalents increasing $35.2 million to $85.9 million at year end compared with the end of fiscal 2008."

The company raised its annual cash dividend rate to $0.32 per share from $0.30 per share in the prior-year.

Lindsay is currently trading at $32.36, down $1.13 on the NYSE

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by RTT Staff Writer

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