Raven Industries, Inc. engages in the provision of technology products and solutions for the industrial, agricultural, energy, construction, and aerospace or defense industries. It operates through the following segments: Applied Technology, Engineered Films, Aerostar, and Corporate and Other. The Applied Technology segment designs, manufactures, sells, and services innovative precision agriculture products and information management tools that help growers reduce costs, control inputs, and improve farm yields to original equipment manufacturers. The Engineered Films segment produces and sells high-performance plastic films and sheeting to both direct to end-customers. The Aerostar segment offers high-altitude balloons, tethered aerostats, and radar processing systems. The Corporate and Other segment covers general and administrative expenses. The company was founded by J. R. Smith, Paul Edward Yost, Thon Duwayne, and Joseph Kaliszewski in February 1956 and is headquartered in Sioux Falls, SD.
Weather conditions or natural disasters could affect certain Company markets, such as agriculture, construction, geomembrane installation, or the Company's primary manufacturing facilities.
The loss, disruption, or material change in the Company's business relationship with single source suppliers for particular materials, components or services, could cause a disruption in supply, or substantial increase in cost of any such products or services, and therefore could result in harm to the Company's sales, profitability, cash flows and financial condition.
Price fluctuations in, and shortages of, raw materials could have a significant impact on the Company's ability to sustain and grow earnings.
Fluctuations in commodity prices can increase the Company's costs and decrease sales.
Failure to develop and market new technologies and products could impact the Company's competitive position and have an adverse effect on the Company's financial results.
Failure to develop and maintain partnerships, alliances, and other distribution or supplier relationships could adversely impact the Company's financial results.
The Company's sales of products that are specialized and highly technical in nature are subject to uncertainties, start-up costs and inefficiencies, as well as market, competitive, and compliance risks.
The Company's Aerostar segment depends on the U.S. government for a significant portion of its sales, creating uncertainty in the timing of and funding for projected contracts.
The Company derives a portion of its revenues from foreign markets, which subjects the Company to business risks, including risk of changes in government policies and laws or changes in worldwide economic conditions.
Adverse economic conditions in the major industries the Company serves may materially affect segment performance and consolidated results of operations.
The Company may pursue or complete acquisitions which represent additional risk and could impact future financial results.
The Company may fail to continue to attract, develop, and retain key management and other key employees, which could negatively impact operating results.
The Company could be impacted by unfavorable results or material settlement of legal proceedings.
Technology failures or cyber-attacks on the Company's systems could disrupt the Company's operations or the functionality of its products and negatively impact the Company's business.
The implementation of a new enterprise resource planning (ERP) system may result in short term disruption to the Company’s operations and business, which could adversely impact the Company and damage customer relationships and brand reputation.
Applied Technology designs, manufactures, sells, and services innovative precision agriculture products and information management tools, which are collectively referred to as precision agriculture equipment, that help farmers reduce costs, more precisely control inputs, and improve farm yields for the global agriculture market.
at the beginning of the second quarter. Abnormal wet weather in the U.S. caused challenging field conditions which negatively impacted planting and application activities in the field and drove reductions in customer demand. Given the challenges being faced, several key OEMs responded with plant shutdowns in order to recalibrate production levels to align with a lower forecast of new machine sales. This temporarily halted sprayer unit production. As a result, Applied Technology's OEM and aftermarket demand in the first half of fiscal 2020 experienced a significant decline. The Company does not generally model comparative market share position for its divisions, but the Company believes Applied Technology maintained its market share in the second quarter of fiscal 2020.
Engineered Films produces high-performance plastic films and sheeting for geomembrane, agricultural, construction, and industrial applications and also offers design-build and installation services of these plastic films and sheeting. Plastic film and sheeting can be purchased separately or together with installation services.