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Lindsay Corp. sees heavier mix of lower margin sales in Q4

The company said, “Record sales in our U.S. and international irrigation markets have led to record results through the first nine months of fiscal 2013. We expect a heavier mix of lower margin international sales in the fourth quarter as we continue to recognize revenue on the $39M order in Iraq, which entered backlog in the second quarter. Drivers for the Company’s markets of population growth, expanded food production and efficient water use provide a solid backdrop for long-term growth. In the near term, we have seen downward pressure on key agricultural commodity prices in anticipation of an improved harvest over last year’s drought conditions. However, recent reports cast doubt on the quality of the crop, raising concern over forecasted ending-stocks, particularly for corn. In addition, the environment for infrastructure sales remains difficult, although we are seeing indications for modest improvement from recent sales trends.”