Art’s Way Sees 16 Percent Revenue Growth in 2019

Art’s Way Manufacturing Co., Inc. has announced its financial results for the fourth quarter and fiscal 2019.

Sales:  Our consolidated net sales for continuing operations totaled $22,889,000 for the 2019 fiscal year, which represents a 16.0% increase from our consolidated net sales of $19,727,000 for the 2018 fiscal year. Our Agricultural Products segment’s sales revenue for the 2019 fiscal year was $13,508,000 compared to $14,344,000 during the 2018 fiscal year, a decrease of $836,000, or 5.8%.  We saw decreased demand for our portable feed equipment in the 2019 fiscal year.  Continued struggles in the dairy market, coupled with market shifts to large cattle operations from the traditional small cattle farmer also contributed to this decrease. 

Additionally, we also saw a decrease in sales of UHC reels year over year due to a loss of our primary reel customer after a strategic decision to not offer such customer discounted prices at unfavorable margins to us.  Moreover, OEM blower revenue in the 2018 fiscal year was not repeated in the 2019 fiscal year as our OEM blower customer elected not to purchase any blowers from us in 2019 due to slow-moving inventory on their dealer lots relating to poor agricultural market conditions.  While we saw decreased demand in the above product lines, we saw increased demand in dump boxes, land maintenance equipment, bale processors and beet equipment. 

Despite these challenges, the 2019 fiscal year ended with our strongest fourth quarter since the 2014 fiscal year.  At the end of our third quarter of the 2019 fiscal year our year to date sales in our Agricultural Products segment were down 18.4% year over year, but we ended the 2018 fiscal year with only a 5.8% decrease year over year.  Our Agricultural Products segment’s sales for the fourth quarter of the 2019 fiscal year were up 59% over the  fourth quarter of the 2018 fiscal year.

Our Modular Buildings segment’s net sales for the 2019 fiscal year were $7,260,000 compared to $3,109,000 for the 2018 fiscal year, an increase of $4,151,000, or 133.5%.  The increase in sales was attributable to increased operating lease activity in 2019 and progress on a $8.5 million project. Additionally, our Modular Buildings segment’s sales for the fourth quarter of the 2019 fiscal year were up 59% over the fourth quarter of the 2018 fiscal year.   

Our Tools segment’s net sales for the 2019 fiscal year were $2,121,000 compared to $2,274,000 for the 2018 fiscal year, a decrease of $153,000, or 6.7%.  The decrease is primarily due to the loss of a large volume customer near the end of the first quarter of the 2018 fiscal year.  This segment began integration of an OEM product line at the end of the fourth quarter of the 2019 fiscal year that is expected to more than make up for the loss of this customer. Our Tools segment’s sales for the fourth quarter of the 2019 fiscal year were up 24% over the fourth quarter of the 2018 fiscal year.