Lindsay Corporation (NYSE:LNN) Q2 2023 Earnings Call Transcript

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Brian Ketcham: Yes. I will take the first part of the question, Blake. I think in terms of dollar amount, I won’t quantify specifically, but we were €“ I would say we were down slightly year-over-year in Brazil in the second quarter. If you compare that to the first quarter, we were up, I think it was 65%. So, I mean it was a significant slowdown from what we would have expected. But this does traditionally happen when there is a transition. And in this particular case, probably more so just because of the amount of protesting and things like that, that was going on. But what we are €“ I think we have gotten past that now and what we are hearing from our teams down there, there has been €“ this is kind of the season, March, April, where you traditionally have your our agri shows and the feedback we are getting is quoting activity, order activity has kind of returned to where we would have expected it to be. Randy, if you want to add anything to that?

Randy Wood: Yes. I think that’s the important part for us is the market fundamentals in Brazil are very strong. We only saw kind of a temporary lull in new order activity that obviously as it works its way through the system results in a temporary lull in shipments. But as Brian said, they are in their fall show season, which are key selling shows for our company, our dealers. And the feedback we are getting now is customers are back in the market, a lot of activity, and we expect that to really drive some opportunities in the second half of the year.

Blake Keating: Alright. Thank you. And then just lastly, any additional color on pricing? Do you expect pricing to come down for pivots? I think you guys have said you plan to hold on to it as long as you can. Just any color there.

Brian Ketcham: Yes. I think we had said prices had stabilized. We have seen, I would say, prior to about three months ago, steel, hot-rolled coil prices had started to come down. I would say what we have seen more recently is the steel mills pushing through price increases. So, I think that certainly supported not lowering our price. I think what we are looking at now is if those steel cost increases continue that we may have to increase price again, which we have said in the past, as costs go up, we want to lead on the way up and protect our margins. So, I would say, overall right now, still stable, but with the situation where we could be increasing prices here if we still €“ if we see steel continue to go up.

Blake Keating: Understood. Thank you. I will pass it on.

Operator: And this concludes our question-and-answer session. I would like to turn the conference back over to Randy Wood, President and CEO, for any closing remarks.

Randy Wood: Thank you for your interest and participation in today’s conference call. We are pleased with our second quarter results and look forward to continued execution through 2023. The Infrastructure segment continues to be supported by strong lease and sales demand as well as funding from the Infrastructure Investments and Jobs Act. While the Irrigation segment may be faced with the decline in U.S. farm income throughout 2023, we still see strong underlying fundamentals in both the mature and developing markets. And both segments continue to benefit from ongoing investments in technology and innovation to drive growth. This concludes our second quarter earnings call. We look forward to updating you on our continued progress following the close of our fiscal 2023 third quarter. Thanks for joining us.

Operator: Thank you for attending today’s presentation. You may now disconnect.

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