Lindsay Corporation Reports Fiscal 2009 First Quarter Results

Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its fiscal first quarter ended November 30, 2008.

First Quarter Results

First quarter fiscal 2009 total revenues increased 49 percent to $113.1 million from $75.9 million for the year-ago period. Net earnings were $6.3 million or $0.51 per diluted share, compared with $4.4 million or $0.36 per diluted share, in the prior year’s first quarter.

Total irrigation equipment revenues increased 52 percent to $86.0 million from $56.5 million in the prior fiscal year’s first quarter. Domestic irrigation revenues increased 55 percent, while international irrigation revenues improved 47 percent from the prior year’s first quarter. Infrastructure revenues were $27.2 million compared with $19.4 million in the prior year period, an increase of 40 percent.

Gross margin was 25.3 percent compared to 25.4 percent a year ago with improved irrigation margins offset by lower infrastructure margins resulting from unfavorable product mix and factory efficiency variances in the quarter.

Operating expenses were $16.9 million, increasing $4.1 million over the first quarter of the prior year, and were 14.9 percent of sales, compared with 16.8 percent of sales in the prior year period. The increased spending was primarily due to the inclusion of Watertronics, $0.7 million of incremental expenses for additional environmental monitoring and remediation as part of an EPA work plan at our Lindsay, Nebraska facility and personnel related costs. Operating income of $11.8 million increased 81 percent compared with $6.5 million in the prior year period. Other expense of $1.7 million primarily resulted from foreign currency translation losses experienced from the volatility of exchange rates.

Lindsay’s backlog of unshipped orders at November 30, 2008 was $40.1 million compared with $51.2 million at November 30, 2007. Irrigation backlog of $23.8 million decreased $6.1 million ($9.0 million prior to the inclusion of Watertronics) from the first quarter of fiscal 2008, and decreased $47.9 million from August 31, 2008. Infrastructure backlog of $16.3 million decreased $5.0 million from the first quarter of fiscal 2008 and decreased $4.3 million from the fiscal 2008 year-end.

Outlook

Rick Parod, president and chief executive officer, commented, "General economic conditions and agricultural commodity prices turned unfavorable during the quarter, which is expected to adversely affect future irrigation equipment demand. These economic changes did impact the incoming order rate during the quarter, with orders received down considerably from the high level experienced in fiscal 2008. However, the first quarter is a seasonally-low sales period for the U.S. market, and not a good indicator of future demand. We have taken action to adjust our staffing and other expenses, and we will continue to monitor the current economic situation and take appropriate action.”

Lindsay also announced today that Barrier Systems Sales & Service, LLC, a wholly-owned subsidiary, has been awarded a contract for approximately $19.6 million to provide moveable barrier and barrier transfer machines for a section of toll road in Mexico City. The contract will also include crash cushions and gate products supplied by Barrier Systems. Work on the contract is currently underway with an estimated completion date of January 2010.

Parod commented, "We are pleased at the opportunity to provide a solution, in part, to the traffic congestion issues facing Mexico City. While general economic conditions have deteriorated, we are optimistic about the opportunities that may develop for our infrastructure segment. We are well positioned to take advantage of incremental U.S. spending for roads and bridges. The drivers for our markets, which include expanded food production, efficient water use, and improvements in transportation safety, remain very positive for long-term growth in our business segments.”

First-Quarter Conference Call

Lindsay’s fiscal 2009 first quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. The conference call will be simulcast live on the Internet, and can be accessed via the investor relations section of the Company's Web site, www.lindsay.com. The Company will have a slide presentation available to augment management's formal presentation, which will also be accessible via the Company's Web site.

About the Company

Lindsay manufactures and markets irrigation equipment primarily used in agricultural markets which increase or stabilize crop production while conserving water, energy, and labor. The Company also manufactures and markets infrastructure and road safety products through its wholly owned subsidiaries, Barrier Systems Inc. and Snoline S.P.A. At November 30, 2008, Lindsay had approximately 12.3 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.

For more information regarding Lindsay Corporation, see Lindsay's Web site at www.lindsay.com. For more information on the Company's infrastructure products, visit www.barriersystemsinc.com and www.snoline.com.

Concerning Forward-looking Statements

This release contains forward-looking statements that are subject to risks and uncertainties and which reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. You can find a discussion of many of these risks and uncertainties in the annual, quarterly and current reports that we file with the Securities and Exchange Commission. Forward-looking statements include the information concerning possible or assumed future results of operations of the Company and those statements preceded by, followed by or including the words "intend,” "expectation," "outlook," "could," "may," "should," or similar expressions. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.