Backlog of unshipped orders at May 31, 2013 was $80.0 million compared with $44.5 million at May 31, 2012 and $159.3 million at February 28, 2013. Current backlog includes $23 million remaining from the $39 million order in the Middle East (Iraq) announced in the second quarter, as well as modest year over year increases in U.S. irrigation and infrastructure.
Nine Month Results
Total revenues for the nine months ended May 31, 2013 were $542.5 million, a 28 percent increase from $423.4 million in the same prior year period. Net earnings were $60.1 million or $4.66 per diluted share compared with $34.5 million or $2.70 per diluted share in the prior year. Fiscal 2012 operating costs included $7.2 million of accrued expenses, or $0.37 per diluted share on an after tax basis, relating to an increase in the Company’s estimated liability for environmental remediation at its Lindsay, Nebraska facility.
Total irrigation equipment revenues increased 36 percent to $497.9 million from $367.4 million during the first nine months of the prior fiscal year. U.S. irrigation revenues of $331.9 million increased 33 percent, while international irrigation revenues of $166.0 million increased 40 percent due to sales increases in most all markets, and most significantly in South America and the Middle East. Infrastructure revenues decreased 20 percent to $44.6 million.Outlook Rick Parod, president and chief executive officer, commented, “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 $39 million order in Iraq, which entered backlog in the second quarter.” Parod added, “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.”