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May 18, 2018
All three divisions at Raven Industries Inc. increased profit margin year-over-year as consolidated net sales increased 19 percent in the company’s first quarter, which ended April 30.
Net income was $22.1 million, or 61 cents per share, compared with $12.3 million, or 34 cents per share, for the same time last year.
One-time items in the quarterly results included a non-operating gain on the sale of an ownership interest in SST of $5.8 million, an expense associated with a $4.5 million donation to SDSU and Project Atlas-related expenses of $900,000. There also was a 12.8 percent reduction in the company’s effective tax rate, resulting in a $3.5 million tax benefit.
“All three divisions continued to achieve strong operating results during the first quarter of fiscal 2019,” said Dan Rykhus, president and CEO. “Investments in growth are leading to increased demand, and operational execution is resulting in higher sales volume and improved financial performance.”
Raven’s applied technology division established its Latin American headquarters in Brazil during the quarter, its engineered firm division reported organic growth and profit margin expansion, and its Aerostar division doubled operating income year-over-year.
“The company is off to a strong start to the year. Underlying organic growth in consolidated net sales and operating income were approximately 5 percent and 20 percent, respectively, when excluding unusual items. Each of the divisions is well-positioned in its markets, and we expect our positive momentum to continue,” Rykhus said.
All three divisions at Raven Industries Inc. increased profit margin year-over-year as consolidated net sales increased 19 percent in the company’s first quarter.