SIOUX FALLS, SD -- Raven Industries' EMS unit continued to slow the company in its fiscal fourth quarter, with the division's net sales falling 27.3% in its fiscal 2015 fourth quarter.

The decline was predominantly driven by significant contraction in demand across the division's agricultural end-markets.

Operating income for the unit was $3.4 million, down 68.4% from 2014. The unit initiated a $7 million annualized cost reduction during this year's fourth quarter, although benefits of those actions were mostly delayed due to timing and offsetting severance payments.

According to chief executive and president Daniel Rykhus, "The decline in end-market demand for Applied Technology has been more pronounced than previous expectations and is worsening in the first quarter of fiscal 2016. Several OEMs are reducing production levels again and lowering their outlooks for the year. With historically high corn inventories, continued high input costs, and waning grower sentiment, we do not expect a rebound in demand until late in the year at best."

Overall net sales for the quarter were $89.9 million, down 3% from a year ago. Excluding sales from contract manufacturing, fourth quarter net sales were $81.6 million, down 1.1% versus fiscal 2014. Net income was $6.2 million, versus $8.3 million, including a favorable tax settlement of $1 million and an extension of a federal R&D tax credit worth $700,000.

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