Raven Industries (RAVN) Q1 2016 Earnings

Raven Industries (RAVN) CEO Daniel Rykhus said they’re starting to see some stability in their end markets

“While our sales declined slightly year-over-year, we continued the trend of incremental improvement and took a big step in restoring the Company back to a growth trajectory.┬áThe declines we experienced in the first quarter in both Applied Technology and Engineered Films were substantially less than those we’ve been experiencing in the second half of last year. There are several reasons for this improvement. For Applied Technology, we’re starting to see more stability in end market demand. While conditions are still tenuous, they are not deteriorating. For Engineered Films, the portion of the division tied to the energy and geomembrane market is substantially less than in previous years and the challenging comparisons are easing.”

Agricultural equipment market improving

“Although the underlying strength of the ag market remain subdued, conditions appear to be stabilizing. Steady market conditions combined with our early success in growing our market share position give us reason to be optimistic for the balance of the year. New product introductions are gaining traction.”

Benefitting from providing balloon equipment to Google’s moonshot Project Loon

“Now let me turn to Aerostar. Sales for the division were up $1.3 million in the first quarter, driven by strength in stratospheric balloon related business, in particular Project Loon. Revenues related to the project were up materially in the first quarter of fiscal 2017 versus the prior year.”