SIOUX FALLS, SD -- Raven Industries reported third-quarter net sales rose 6% to $57.4 million and net income was relatively flat at $7 million for the period ended Oct. 31.

The company's Electronic Systems division reported record quarterly revenues and strong incremental profitability.

In a statement, chief executive Ronald Moquist said, "The Electronic Systems division turned in a stellar performance this quarter. We benefited from strong incremental demand, demonstrating the ongoing profit potential from this segment. Longer-term, we are optimistic regarding our ability to achieve the company's targeted 12% sales and 15% profit growth, although quarterly comparisons will continue to challenge us until we see the benefit of our new film capacity and improved farm activity."

Other Raven divisions include Engineered Films, Flow Controls and Aerostar.

Electronic Systems sales rose 29% to $17.6 million and operating income was up 57 to $3 million, driven by a favorable product mix and strong capacity utilization. For the nine months, sales of $49.3 million are up 16% and operating income is up 15% to $7.9 million from a year ago Operating margins are about 17%.

Moquist said, "Within our existing client base, we see a lot of additional opportunities for high-mix, low-volume projects. We can meet their product needs in a tight timeframe and we generate good margins. Customers are accelerating delivery dates and we believe that the fourth quarter will see continued sales growth with another strong profit contribution."

Cash and investment balances at Oct. 31 were $10.6 million versus $12.2 million last year. Operating cash flows for the first nine months totaled $21.1 million, up from $15.5 million.

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