Raven reports strong third-quarter earnings

Sioux Falls-based Raven Industries Inc. more than doubled its earnings year-over-year thanks to improved performance from multiple divisions.

Net income for the third quarter of fiscal 2018 was $12 million, or 33 cents per share, compared with $5.7 million, or 16 cents per share, in the previous year.

“We are very pleased with the performance achieved by all three operating divisions throughout the first nine months of the year,” said Dan Rykhus, president and CEO. “Each division has worked to optimize performance given their specific end-market conditions and each has achieved success.”

The company’s applied technology division “has faced a more challenging agriculture market than we expected at the beginning of the year, and we don’t foresee anything changing in the next 12 months to improve market conditions,” he added.

Net sales in the division were up slightly, but  operating income was down 16.5 percent year-over-year.

“At the same time, we have made the strategic decision to fund several long-term investments for growth, knowing this dampens short-term profits. We believe strongly in the long-term margin potential for ATD, and we expect improved margins over time with these investments, even if end-market conditions remain challenging,” Rykhus said.

Raven’s engineered films division modified its production schedules to accommodate hurricane-related recovery efforts in the third quarter and generated $8.4 million in sales.

The division also closed on the acquisition of Colorado Lining International, which Rykhus said is going well.

“Similar cultures and strong leadership are greatly benefiting the integration efforts,” he said, adding the expectation is the acquisition will contribute 5 cents per share by fiscal 2019.

Raven’s Aerostar division is showing improved financial performance and technology. Its stratospheric balloon has achieved a record 197 days aloft, and its partnership with Google to deliver internet service using its balloons “remains very strong,” Rykhus said.

Raven’s stock closed at $36.75 on Nov. 21, which is close to its 52-week high.

Raven reports strong third-quarter earnings

Sioux Falls-based Raven Industries Inc. more than doubled its earnings year-over-year thanks to improved performance from multiple divisions.

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