Raven ends fiscal 2019 with record sales

March 21, 2019

Raven Industries Inc. set a new sales record in its 2019 fiscal year, with net sales totaling $406.7 million.

That’s a 7.8 percent increase from 2018 and beats the previous record, set in 2013.

The current sales mix better aligns with Raven’s long-term strategy, too, as contract manufacturing accounts for 2 percent of the total.

The Sioux Falls company has been steadily moving away from that element of the business, which represented 13 percent of sales in 2013.

Earnings increased year over year to $51.9 million, or $1.42 per share, compared with $41 million, or $1.13 per share in fiscal 2018.

The fiscal 2019 results included a $4.6 million gift to South Dakota State University and $4 million in expenses related to Project Atlas, an initiative to replace the company’s enterprise resource planning platform.

Earnings also reflected a 10.1 percent reduction in Raven’s effective tax rate, equating to $6.2 million, or 17 cents per share.

“We are very pleased with how all three divisions executed according to their long-term strategic plan in fiscal 2019,” said Dan Rykhus, president and CEO. “The company achieved strong financial results, including record sales in fiscal 2019, while investing for long-term growth. Each division accomplished this in ways that are unique to their specific market position and strategy.”

Raven also completed an acquisition in January of Indiana-based AgSync, which develops software solutions for ag retailers and aerial applicators to overcome challenges related to managing large fleets, multiple locations, limited personnel and disconnected software systems in their operations.

“Our investments in technology development and manufacturing capacity along with our strong balance sheet and access to additional funding for strategic acquisitions has positioned Raven Industries for long-term success,” Rykhus said. “We look forward to fiscal 2020, and our goal remains to generate annual earnings growth of 10 percent over the long term.”

Raven’s stock closed Wednesday at $38.59 per share.

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Raven ends fiscal 2019 with record sales

Raven Industries Inc. set a new sales record in its 2019 fiscal year, with net sales totaling $406.7 million.

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