SIOUX FALLS, S.D.
Raven Industries, Inc.
(Nasdaq: RAVN) today announced its performance for the three months and fiscal year ended
January 31, 2010
. Lower sales reflected weaker economic conditions in Raven's markets. However, cost reductions and operating efficiencies led to improved profitability. In the fourth quarter, the Company produced a 25 percent increase in net income on 7 percent lower sales. Earnings per diluted share in the fourth quarter increased to
in the prior year period.
For the full year, sales were down 15 percent to
from a record
in fiscal 2009. This reflected lower revenues at the Applied Technology and Engineered Films divisions and slight increases at Electronic Systems and Aerostar. Net income decreased 7 percent to
per diluted share, compared with the year-ago record of
per diluted share. Return on sales improved to 12.0 percent from 11.0 percent.
"Raven had a good year, but not a record year as our markets deteriorated," said
Ronald M. Moquist
, chief executive officer. "However, we responded quickly in the face of this situation. Cuts were made and spending was aggressively managed. Things under our control, such as efficiency, productivity and quality, showed significant improvement. While we operated in a more defensive mode, we did make new investments in selected growth opportunities."
For the fourth quarter, sales of
decreased 7 percent from
for the year-ago period. While net income in the previous year's fourth quarter was hurt by losses in Engineered Films, their rapid response to the recession returned the division to profitability. As a result, consolidated net income for the latest three months increased 25 percent to
Applied Technology Invests in Long-term Growth
Annual revenues for the Applied Technology Division, at
compared with the fiscal 2009 record of
, showed a 16 percent decline. Operating income was off 24 percent, to
, compared with
for the prior year.
For the fourth quarter, sales were
, or a 12 percent decrease. Operating income in the latest quarter was down 21 percent to
High input costs, combined with lower commodity prices, reduced profits for many American growers. Caution about equipment purchases reduced sales in this division. While revenues from international markets were also down for the year, they increased 17 percent in the fourth quarter—reaching 20 percent of division annual sales versus 18 percent a year ago.