Lindsay Corp Q3 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : I would like to start off on the commentary that you made about farmer uncertainty shifting demand from what's normally a spring selling season into the fall. I think that's maybe the first time ever I've heard an irrigation supply, I talk about demand shifting into the fall where you're typically seeing the crop grown people aren't out there, generally installing equipment on top of that crop. Can you just give us some more detail on the dynamics around that and why it is that you think that demand shift into the fall, I would have thought that if it was shifting, it would have probably shifted into next spring.

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : Okay. So what you're saying is not that it shifts to during the growing season, you're saying it after the harvest late fall kind of late in your fiscal first quarter or early into your fiscal second quarter?

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : Got it. That makes more sense. And then my follow-up question was on gross margins. Obviously, they've been pretty volatile over the last couple of years, we've followed the price changes in steel. They've started to settle down here a bit more into kind of that low 30s area. Is that an area where you think gross margins are sustainable? Does the drop in demand here in '23 give you any pause for concern on pricing that might put the pressure on gross margin? Or just any more commentary you can give us around that. .