SIOUX FALLS, SD -- Raven Industries today announced record sales and earnings for its second quarter ended July 31 on growing demand in energy, precision agriculture and military surveillance.

For the second quarter, sales increased 29% to $73.2 million from a year ago. Net income rose 35% to $8.4 million, up 35.5%.

The company's Electronic Systems Division sales were up 1% to $18.1 million versus last year's second quarter. Operating income declined 5% to $2.8 million, on a less-favorable product mix.

Daniel A. Rykhus, chief executive, said the contract electronics manufacturing services unit is operating "at a good level with an appropriate cost structure. We continue to bid on new projects. In the meantime, this division remains a good contributor to cash flow."

As of  July 31, cash and investment balances were $53.6 million, up from $43 million a year ago. Accounts receivable increased to $34.7 million compared with $29.2 million, and inventories were $45.2 million, up $15.7 million from the prior year.

"We expect a record year at Raven through the continuation of current trends. This includes sales and profit growth in the second half, with moderation in the growth rate of Engineered Films. Since the fourth quarter of last year represented the beginning of our recovery, we anticipate comparisons to get tougher as the year progresses," Rykhus said.