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Exhibit 99.1 Press Release dated March 14, 2001
PRESS RELEASE
LINDSAY MANUFACTURING CO.
2707 NORTH 108TH STREET
SUITE 102
OMAHA, NE 68164
402-428-2131
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
Bruce C. Karsk Todd Tarbox Bill Schmidle Tim Grace
Executive VP and CFO General Inquiries Analyst Inquiries Media Inquiries
402-428-2131 312-640-6742 312-640-6753 312-640-6240
Section 1. FOR IMMEDIATE RELEASE
Section 2. WEDNESDAY, MARCH 14, 2001
LINDSAY MANUFACTURING ACQUIRES
EUROPEAN IRRIGATION COMPANY & UPDATES 2001 OUTLOOK
OMAHA, NEB., MARCH 14, 2001--LINDSAY MANUFACTURING CO. (NYSE: LNN), a world
leader in technology driven irrigation systems, has acquired Perrot SA located
in La Chapelle d'Aligne, France. A leading European manufacturer of mechanized
irrigation systems, Perrot SA specializes in hard hose traveler, center pivot,
and lateral move systems.
"Lindsay Manufacturing is a global company and the addition of Perrot SA gives
us a manufacturing presence in Europe that allows us to expand our agricultural
and commercial product line in both the international and United States
irrigation markets," Lindsay President and Chief Executive Officer, Rick Parod
said.
"We plan to expand the marketing of the Perrot SA hard hose traveler products
throughout the world for both agricultural and commercial applications," Parod
added. "The manufacturing facilities are efficient, strategically located, and
will continue to be used to supply Perrot irrigation systems to Europe as well
as other parts of the world. Additionally, this acquisition provides us with a
base for manufacturing all of Lindsay's products for the European market."
The Company anticipates that the acquisition will have a negligible effect on
earnings in the first year after closing and will be accretive to earnings
thereafter. Perrot SA will operate as a subsidiary of Lindsay Manufacturing Co.
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OUTLOOK
Lindsay also advises investors that it is experiencing demand softness in the
agricultural irrigation market. While dealer quote activity to growers has been
strong, the company's order receipts have been lower than expected. "The entire
agricultural irrigation equipment industry, Lindsay included, is experiencing
the double effect of the uncertainty farmers are facing regarding higher input
costs and flat agricultural commodity prices, as well as the unfavorable impact
of wet weather which has delayed installations in many parts of the U.S. We
believe that this has led to a delay in farmers finalizing their purchase
decisions for irrigation equipment, as well as other agricultural equipment.
This is an industry-wide situation and we are confident that it does not reflect
any market share loss for Lindsay," Parod commented.
The Company plans to report its second quarter Fiscal 2001 results for the
period which ended February 28th, within the next two weeks. Revenues for the
quarter are expected to be approximately 20 percent below the same period last
year, while Earnings Per Share are expected to be approximately 60 to 70 percent
lower, before a one time charge. Lindsay plans to take a one time charge during
the quarter totaling $0.05 per share for writing down, to net realizable value,
the value of manufacturing equipment used in a specific manufacturing process
which is being discontinued. The Company expects that full year August 31, 2001,
revenues will be 3 to 7 percent below last year.
Lindsay has incurred higher operating expenses as it has invested in several
strategic growth initiatives, such as opening a company-owned retail store in
Southwestern Kansas after one of Lindsay's dealers was acquired by a competitor.
In addition, the company has experienced increased natural gas costs and an
increase in its group health insurance costs. The company recently implemented
several measures to reduce operating expenses, including the elimination of many
support positions. Additional cost reduction actions are planned.
Lindsay manufactures and markets Zimmatic and Greenfield center pivot and
lateral move irrigation equipment, which are used by farmers to increase or
stabilize crop production while conserving water, energy, and labor. The company
also produces large diameter steel tubing and provides outsource manufacturing
and production services for other companies. At February 28, 2001, Lindsay had
approximately 11.7 million shares outstanding, which are traded on the New York
Stock Exchange under the symbol LNN.
CONCERNING FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements that are subject to risks and
uncertainties and which reflect management's current beliefs and estimates of
future economic circumstances, industry conditions, company performance and
financial results. Forward-looking statements include the information concerning
possible or assumed future results of operations of the company and those
statements preceded by, following by or including the words "expectation,"
"outlook," "could," "may," "should," or similar expressions. For these
statements, we claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.
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FOR MORE INFORMATION REGARDING LINDSAY MANUFACTURING CO., FREE OF CHARGE VIA
FAX, SIMPLY DIAL 1-800-PRO-INFO AND ENTER "LNN." OR, SEE LINDSAY'S WEBSITE AT
WWW.ZIMMATIC.COM
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