Art’s-Way Manufacturing, a diversified, international manufacturer and distributor of equipment serving agricultural, research and steel cutting needs, announces its financial results for the second quarter and year to date fiscal 2021.
Consolidated corporate sales for the three- and six-month periods ended May 31, 2021 were $5,710,000 and $11,111,000, respectively, compared to $5,446,000 and $10,472,000 during the same respective periods in fiscal 2020, a $264,000, or 4.8%, increase for the three months and a $639,000, or 6.1%, increase for the six months. The three and six month increases are due to increased demand in agricultural products and tools segments. The company saw a decrease in sales in its modular buildings segment as it nears completion on a large project that generated significant revenue in fiscal 2019 and 2020.
Second quarter sales in the company's agricultural products segment were $3,858,000 compared to $3,071,000 during the same period in fiscal 2020, an increase of $787,000, or 25.6%. Year-to-date agricultural product sales were $7,357,000 compared to $6,023,000 during the same period in fiscal 2020, an increase of $1,334,000, or 22.1%. The company attributes the large increase in revenue to a strengthening agricultural economy that is producing five to ten year highs in commodity and livestock prices along with government assistance programs that provided farmers with much needed government assistance during the COVID-19 pandemic. The company saw a 65% increase in grinder mixer sales year on year and is showing a 25% increase in manure spreader sales year on year.
The company's backlog continues to be strong heading into the third quarter of fiscal 2021 and Art's Way anticipates improved results for the second half of fiscal 2021. However, the company has seen lead times increase on raw materials and components as suppliers in the supply chain struggle to keep up with demand. Fulfillment of the company's strong backlog will be contingent on whether suppliers are able to deliver or not. The company has seen rising costs for virtually all raw material and components that go in its products and in turn have increased prices twice in fiscal 2021 to offset these rising costs.
Consolidated net income was $64,000 for the three-month period ended May 31, 2021, compared to net loss of $(802,000) for the same period in fiscal 2020. Consolidated net loss for the 6 months ended May 31, 2021, was $(251,000) compared to $(1,239,000) in the same period in fiscal 2020. The company is reporting vast improvement on its bottom line year on year due to many factors.
"First and foremost, the overall health of the agricultural economy has brought some stability to our primary business segment," the company stated in its press release. "We are continuing to strive for operational improvement and have seen the benefits through increased labor efficiency and reduced manufacturing costs. Fiscal 2020 brought many administrative expenses that were not repeated in fiscal 2021 as we battled a global pandemic and transitioned two long-time members of management. Our business is better positioned to succeed in times of economic boom than we were five years ago. We will continue to push for operational excellence as we face the challenges of an ever changing economy."