Raven more than doubles annual earnings

March 7, 2018

Raven Industries grew its net income by 108 percent in its 2018 fiscal year, helped by sales increases in all divisions.

Net income for the fiscal year, which ended Jan. 31, was $41 million, or $1.13 per share, up from $20.2 million, or $0.56 per share, in fiscal 2017.

“We are very pleased with the performance achieved by all three operating divisions throughout fiscal 2018,” said Dan Rykhus, president and CEO. “Consolidated net sales were $377 million, and all three divisions achieved double-digit sales growth.”

The company’s applied technology division achieved strong results despite continued challenging agricultural market conditions, he said.

“We expect to continue to drive growth and will continue to strategically fund several long-term investments,” he said, adding the company’s new regional headquarters in Brazil is designed to “drive organic growth in Latin America in order to better capitalize on one of the largest agricultural markets in the world.”

The engineering films division grew sales by $75 million year-over-year, with prior investments in acquisitions and manufacturing capacity driving growth, Rykhus said.

“The division continues to see opportunities for growth and is investing in additional capacity in fiscal 2019. As for hurricane recovery efforts, the delivery of recovery film will result in sales of approximately $9 million in the first quarter and then return to significantly reduced levels consistent with prior years,” he said.

The Aerostar division also improved financially and sharpened its focus on the stratospheric balloon platform, Rykhus continued.

“Strong performance on existing programs is driving confidence for continued growth with Aerostar’s stratospheric balloon platform,” he said.

Raven also continues to evaluate strategic acquisitions and will continue to invest in manufacturing capacity and technology development to enhance its core product lines, he added.

“Our goal remains to generate 10 percent annualized earnings growth over the long term, excluding unusual and generally nonrecurring items.”

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Raven more than doubles annual earnings

Raven Industries grew its net income by 108 percent in its 2018 fiscal year, helped by sales increases in all divisions.

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