Valmont Industries Inc.
) logged third-quarter 2012 earnings of $2.12 per share, topping
the Zacks Consensus Estimate of $2.06 and exceeding the
prior-year quarter's earnings of $1.59. The fabricated metal
products maker's profit surged 34.6% year over year to $56.7
million on higher revenues.
Revenues jumped 8.6% year over year to $729.8 million, boosted
by growth across the board with the company's Utility Support
Structures segment leading from the front. However, sales missed
the Zacks Consensus Estimate of $739 million.
Operating income jumped 25.5% year over year to $90.4 million
with operating margin increasing to 12.4% from 10.7% a year
Revenues from the Utility Support Structures segment climbed
36% year over year to $217.5 million, driven by higher demand
from electric utility companies to upgrade the North American
transmission grid. International sales grew narrowly as an
improvement in Australia was masked by a decline in China.
Irrigation Segment sales rose 4% year over year to $156.5
million. International revenues increased in the quarter, aided
by higher demand for feed-gains.
The Engineered Infrastructure Products division raked in sales
of $229.3 million, up 3% year over year. The company recorded
strong revenues from lighting products in Canada. Sales of
wireless communication structures and components increased in the
quarter, backed by 4G network installations. European lighting
and traffic structure sales were flat in local currency while
revenues rose modestly in the Asia-Pacific region.
Revenues from the Coatings Segment rose 4% to $83.7 million on
the back of higher sales in North America. The Asia-Pacific
region saw weak demand in Australia.
Valmont exited the quarter with cash and cash equivalents of
$427.1 million, up 27% year over year. Total long-term debt
decline 4% year over year to $473.5 million.
Looking ahead, Valmont expects continued strength in its
utility business in the remainder of 2012. It also expects
healthy demand for irrigation equipments from farmers in the
For the Engineered Infrastructure Products and Coatings
segments, Valmont do not expect much change in demand levels.
Moreover, the company expects a strong 2013 and envisions higher
demand for utility support structures as well as strong demand
for irrigation equipment based on increased firm
Valmont, which competes with
), maintains a Zacks #2 Rank, which translates into a short-term
(1 to 3 months) Buy rating. We currently have a long-term
Outperform recommendation on the stock.
LINDSAY CORP (LNN): Free Stock Analysis
VALMONT INDS (VMI): Free Stock Analysis
To read this article on Zacks.com click here.