Lindsay CEO sees stabilization in domestic market
Lindsay CEO Rick Parod commented, "U.S. irrigation equipment revenues were improved for a second consecutive quarter, a further indication that we may have reached a level of stabilization in the domestic market. The market recovery in Brazil and increased project activity in developing markets continue to drive growth in international irrigation. Commodity prices have stabilized, but are expected to remain under pressure as generally favorable weather conditions during the 2017 growing season are expected to result in above average crop production levels and ending stocks. The latest USDA estimate of net farm income for 2017 is projected to be 3% higher than last year, following three years of significant decline. Grower sentiment in the U.S. is showing signs of improvement and we expect modest growth in our U.S. irrigation business in the upcoming year. We also expect continued growth in international irrigation markets. In our infrastructure business, we expect continued global growth in Road Zipper system sales and leasing as well as our road safety products. The longer-term drivers for our markets of population growth, expanded food production and efficient water use, and infrastructure upgrades and expansion support our expectations for growth."