Valmont Industries Inc.
) posted second-quarter 2012 earnings of $2.24 per share, beating
the Zacks Consensus Estimate of $2.16 and surpassing the prior-year
quarter's earnings of $1.72. Profit soared 31% year over year to
Revenues jumped 14.8% year over year to $767.3 million, exceeding
the Zacks Consensus Estimate of $764 million. Sales were boosted by
solid growth at the company's Utility Support Structures segment.
Revenues from the Utility Support Structures segment cruised 55%
year over year to $212.2 million, buoyed by increased demand from
electric utility companies to upgrade the North American
transmission grid. International sales were essentially flat year
over year as improvement in Asia-Pacific was masked by a decline in
Irrigation Segment sales rose 6% year over year to $194.5 million,
driven by higher revenues across the North American and
Revenues from the Engineered Infrastructure Products division
climbed 9% to $225.8 million. Sales improved in North America in
the quarter. Transportation lighting and traffic product sales rose
due to improved market conditions in Canada.
The company saw significant growth in sales of wireless
communication structures and components. European lighting and
traffic structure sales were flat while revenues rose in the
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The Coatings Segment raked in sales of $84.8 million, stable year
over year. Higher volume in North America was offset by a
decline in the Asia-Pacific region.
Valmont exited the quarter with cash and cash equivalents of $328.4
million, up 0.5% year over year. Total long-term debt decline 3%
year over year to $473.8 million.
Valmont continues to expect its earnings to exceed $8.00 per share
in 2012 based on strength in its utility segment. The company is
increasing capacity to leverage the meaningful opportunity in the
North American utility market. It expects the environment to remain
favorable for the Irrigation and Coatings segments.
For the Engineered Infrastructure Products segment, Valmont is
encouraged by the improving other structural markets in North
America. Market conditions in Europe are, however, expected to
We currently have a long-term Outperform recommendation on Valmont.
The company, which competes with
), maintains a Zacks #2 Rank, which translates into a short-term (1
to 3 months) Buy rating.