Raven Industries Reports 2nd-Qtr Sales Up 9 Percent to $34.1 Million While Net Income Climbed 14 Percent to 1.6 Million, or 33 Cents, from $1.4 Million, or 30 Cents, a Year Earlier
SIOUX FALLS, S.D., Aug. 18 /<A HREF="http://www.prnewswire.com ">PRNewswire</A>/ -- Raven Industries, Inc. (Nasdaq: RAVN) announced today that strong sales of its plastic and fiberglass tanks and the impact of its January 1997 Norcore Plastics acquisition helped overall sales for its second quarter to climb to $34.08 million, up 9 percent from a year ago. Net income, bolstered by sharply higher operating profits in the company's Sewn products segment, improved 14 percent in the second quarter to $1.60 million, or 33 cents a share, from $1.41 million, or 30 cents, in the year-earlier period.
Management said it expects "solid results" for its second half and both record sales and net earnings for its full year ending January 31, 1998.
Six-Months and Trailing 12-Months Results For the first six months of its fiscal year, Raven reported sales climbed 12 percent to $69.74 million from $62.14 million for the first half of fiscal 1997. Net income was up 16 percent to $3.74 million, or 77 cents a share, from $3.22 million, or 68 cents a share. For the trailing 12 months ended July 31, 1997, the company reported 15 percent higher sales than the comparable 12 months a year earlier and earnings per share of $1.70, up 20 percent from a year earlier.
Plastics Segment Sales rose 17 percent in the second quarter and 23 percent for the first six months of the fiscal year and primarily grew from strong performance in the plastic and fiberglass tank business, with a major portion of the gain provided by the acquisition of Norcore Plastics in January 1997. Norcore is expected to add approximately $8 million in sales for the year ending January 31, 1998. Excluding Norcore, tank sales rose 10 percent for the quarter and 9 percent for the first half. Sales of engineered films increased 5% for the quarter. Operating income, however, declined for the latest quarter and six months primarily because of slightly lower margins and higher selling expenses, which were incurred to improve future growth opportunities.
David A. Christensen, President and CEO, said, "with accelerated construction activity in the U.S., we expect our plastics films business to make a significant contribution both to sales and earnings in the second half of the year." Sales for the Plastics segment reached $16.6 million in the quarter while operating income declined 8 percent to $989,000. Six-months sales rose to $34.6 million vs. $28.2 million.
Electronics Segment In the company's Electronics Segment, sales were relatively flat for both the most recent quarter and first half, but operating income rose. "We did expect that both sales and operating profit would improve in this segment during the second quarter, but the sales pick-up began a bit late. While July was a good month, the increase began too late to boost sales for the quarter overall." Second-quarter sales totaled $9.04 million, down 1 percent from $9.13 million a year earlier. For the six months, sales totaled $21.2 million, virtually the same as the first half of the previous year. Operating income rose 10 percent during the second quarter to $490,000 while six-months operating earnings were up 12 percent.
Sewn Products Segment Sales for the company's Sewn Products segment increased 5 percent to $8.4 million in the second quarter while six-months sales rose 9 percent to $14.0 million. Operating income climbed 34 percent in the second quarter to $928,000. For the first half, sales rose 9 percent to $14.0 million while operating income jumped 59 percent to $1.23 million.
Raven Industries is a diversified manufacturer that supplies plastics, electronics and special-apparel products to various markets.
This release contains discussions of items which may constitute forward- looking statements within the meaning of federal securities laws. Although Raven Industries believes that expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include general economic conditions, weather conditions which could affect certain of the company's primary markets such as the agricultural market or its market for outerwear, or changes in competition which could impact any of the company's product lines.