Art's Way Manufacturing Co., Inc., manufacturer and distributor of agricultural machinery, equipment and services releases its first quarter results.
Total revenue decreased 0.9% from $6.75 million to $6.69 million for the three months of 2009. Art's Way Vessels, Inc. increased their three month revenue by 31.5%, while Art's Way Manufacturing Co., Inc. increased revenue by 14.1% during the same period. These increases were offset by the decrease in the revenue of Art's Way Scientific, Inc. by 26.9%
Operating income decreased 88% from $814,000 to $98,000 for the three months ended of 2009 compared to 2008, while net income for the same period decreased 99.3%, from $477,000 to $3,600. The most significant reason for these reductions in income is due to reduced gross profit margins.
Consolidated gross profit margin for the first quarter of 2009 was 19.7% compared to 32.2% for the same period one year ago, primarily due to decreases in gross profit margin at Art's Way Manufacturing and Art's Way Scientific. The gross profit margin of Art's Way Manufacturing decreased from 38.4% in the first quarter of 2008 to 21.5% for the same period in 2009.
The purchase of Miller Pro led to a production backlog, so products shipped in early 2009 were manufactured with high-cost inputs in 2008 but priced with 2007 prices to meet customer satisfaction. As of March 2009, order backlog is $13.1 million
For More Information: Art's Way Manufacturing