Raven Industries is reporting that net sales for its third quarter were down by 4.1 percent compared to the same quarter last year. Each division experienced a modest year-over-year decline.
Operating income for the quarter decreased by 16.7 percent year-over-year. The decline was primarily driven by increased investments in research and development and selling activities, as well as negative operating leverage resulting from lower sales volume.
Unfavorable market conditions in North America resulted in additional OEM plant shutdowns during the third quarter, a report from the company said, which drove a 13.5 percent decrease in sales to the OEM channel.
Despite these end-market challenges, the aftermarket channel showed signs of strength and grew 4.8 percent year-over-year.
The company recently acquired autonomous company Smart Ag and invested in the controlling ownership interest of DOT. Integration efforts are underway.
Source: Raven Industries