Shares of Raven Industries fall on 1Q profit drop

Raven Industries shares tumble on steep drop in fiscal 1st-qtr profit, lower sales

Associated Press

SIOUX FALLS, S.D. (AP) -- Shares of Raven Industries Inc. tumbled Monday after the industrial products maker said its fiscal first-quarter net income fell 26 percent, as sluggish economic conditions hurt sales at all of its businesses.

In afternoon trading, the Sioux Falls, S.D., company's shares dropped $2.73, or 8 percent, to $31.70 after falling as low as $30.55 earlier in the day. Over the past 52 weeks, the company's shares have traded between $23.01 and $37.73.

For the quarter ended April 30, Raven earned $14 million, or 38 cents per share, down from $19 million, or 52 cents per share, a year ago. The per-share amounts reflect a two-for-one stock split that was effective July 25.

Revenue fell 12 percent to $103.7 million from $117.9 million.

The company cited "modest softness" at its applied technology division that sent sales there down 5 percent to $51.2 million. At the same time, lower demand from U.S. agency customers resulted in a 15 percent drop in sales at its Aerostar business to $21.7 million.

And softness in the energy market reduced engineered films sales by 16 percent to $34.5 million, the company said.

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