Raven Industries, Inc. today announced its performance for the three months and fiscal year ended January 31, 2010. Lower sales reflected weaker economic conditions in Raven's markets. However, cost reductions and operating efficiencies led to improved profitability. In the fourth quarter, the company produced a 25% increase in net income on 7% lower sales. Earnings per diluted share in the fourth quarter increased to 32 cents compared with 26 cents in the prior year period.

For the full year, sales were down 15% to $237.8 million from a record $279.9 million in fiscal 2009. This reflected lower revenues at the Applied Technology and Engineered Films divisions and slight increases at Electronic Systems and Aerostar. Net income decreased 7% to $28.6 million, or $1.58 per diluted share, compared with the year-ago record of $30.8 million, or $1.70 per diluted share. Return on sales improved to 12% from 11%.

"Raven had a good year, but not a record year as our markets deteriorated," said Ronald M. Moquist, Chief Executive Officer. "However, we responded quickly in the face of this situation. Cuts were made and spending was aggressively managed. Things under our control, such as efficiency, productivity and quality, showed significant improvement. While we operated in a more defensive mode, we did make new investments in selected growth opportunities."

For the fourth quarter, sales of $55.8 million decreased 7% from $59.9 million for the year-ago period. While net income in the previous year's fourth quarter was hurt by losses in Engineered Films, their rapid response to the recession returned the division to profitability. As a result, consolidated net income for the latest three months increased 25% to $5.8 million, from $4.7 million.

Electronic Systems Rebounds for Year, Sees Weaker Fourth Quarter

For fiscal 2010, Electronic Systems Division sales increased by 2% to $63.5 million from $62.0 million in the prior year. Operating income rose by 52%, to $9.0 million compared with $5.9 million a year ago.

Sales in the fourth quarter were $13.8 million versus $16.1 million for last year's three months, a 14% reduction. Operating income fell 13% to $2.0 million from $2.2 million in the year-ago quarter.

Improved efficiency and a lower cost structure helped Electronic Systems to recover its profit margins during the past fiscal year. The leaner organization allowed all of the division's primary markets to show profit improvement in a volatile environment.

"Avionics deliveries started the year strong and then slowed as commercial airlines began cancelling or delaying delivery schedules. This trend will probably continue in the year ahead. Demand levels for secure communication devices for government agencies followed a similar pattern and electronic bed controls were slightly down," explained Moquist.