With net sales of US$85.2 million, Raven Industries is only down 13.1% for the second quarter of its fiscal year. The company was saved by growth in its Applied Technology and Aerostar divisions that offset a fall in Engineered Films.
Applied Technology generated significant year-over-year growth despite reduced industry demand. Net sales for its Applied Technology division in the second quarter of fiscal 2021 was US$35.5 million, an increase of US$8.1 million, or 29.7% when compared to the same quarterly results last year.
Division operating income in the second quarter of fiscal 2021 was US$6.5 million, up US$1.7 million or 34.3%. But following its quarterly earnings release and an eye to the future, Raven announced it had suspended quarterly cash dividends indefinitely. This dividend suspension results in the company retaining nearly $20 million in capital on an annual basis.
These funds will be reallocated to accelerate investments in Raven Autonomy and Raven Composites. Such as advancements for its market-leading VSN Visual Guidance System, building upon the Company’s bold investment in Raven Autonomy. The latest advancements in VSN – full canopy guidance and automatic row turnaround – allow operators to cover more ground with fewer manoeuvres to manage.