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Lindsay 1Q profit falls on increased expenses

The Associated Press

NEWS: Lindsay's fiscal first-quarter net income fell 31 percent, hampered by higher operating expenses.

DETAILS: Total operating expenses for the seller of irrigation systems and infrastructure products increased to $24.2 million from$20.6 million.

Lindsay also announced Friday that it is doubling its regular quarterly dividend to 26 cents per share. The dividend will be paid on Feb. 28 to shareholders of record on Feb. 14.

The company also said that it replaced its existing share repurchase program with an increased authorization to buy back up to $150 million shares of its common stock. Lindsay plans to buy back $100 million to $150 million of its common stock over the next two years.

NUMBERS: For the three months ended Nov. 30, Lindsay Corp. earned $10.2 million, or 79 cents per share. That compares with $14.7 million, or $1.15 per share, in the prior-year period.

Operating revenue rose to $147.7 million from $147.4 million.

Analysts polled by FactSet forecast earnings of 92 cents per share on revenue of $142.2 million.

Irrigation equipment revenue slipped 4 percent to $129.2 million. U.S. irrigation revenues fell 18 percent to $79.3 million, as the last year's quarter benefited from drought-driven sales. International irrigation revenue climbed 32 percent to $49.9 million, driven by growth in South America and Australia.

Infrastructure revenues rose 41 percent to $18.5 million with increases in nearly all infrastructure product lines.

STOCK: The shares gained 37 cents to $82.89 in morning trading.