Art’s Way 2008 Financial Results

Art’s Way Manufacturing Co., announced its financial results for the fiscal year ended November 30, 2008. Total revenue increased 25.6%, from $25.52 million to $32.04 million for the fiscal year. A large portion of the increase is due to the full year of Art’s Way Scientific revenue, and also to the addition of the Miller Pro product line, the company said.

Operating income decreased from $3.76 million to $2.77 million for the fiscal year, while net income for the fiscal year decreased from $2.23 million to $1.83 million. These decreases are due to reduced gross margins, along with increased administrative costs. J. Ward McConnell, Jr., Executive Chairman of the Board of Directors said. “Worldwide economic conditions have changed, and the Company and the agricultural sector have not been immune to these conditions.”

The company said during the last two quarters, their overtime wage expense increased over the same period in 2007. Also, with the increased need for production due to the acquisition of the Miller Pro product line, the company outsourced items traditionally made in-house. These two factors, along with the rising costs of their inputs, such as steel and freight, have negatively impacted the company’s gross profits,
McConnell Jr. said.