Valmont Industries Inc
) announced that it has acquired majority stake in South
Dakota-based AgSense. With this acquisition, Valmont's portfolio in
remote monitoring and control technology for agriculture will
AgSense's advanced global WagNet network offers growers a
comprehensive view of their farming operation by coordinating
irrigation decisions with field, crop and weather conditions. Per
Valmont, the collaboration will enable its customers to receive
what they wish for.
Moreover, the cutting edge technology of AgSense, along with its
customer service and an excellent reputation, fits well with
Valmont's strategy and portfolio. Valmont's leading BaseStation
products when combined with AgSense's offerings will provide broad
range of solutions to the market.
On the other hand, AgSense will be benefited as this partnership
will increase its presence in North America, and will provide it
with opportunities to accelerate international growth.
Valmont released its second-quarter 2014 results recently. The
company posted a profit of $64 million or $2.38 per share in the
quarter, down roughly 28.6% from $89.6 million or $3.33 per share
in the year-ago quarter. Earnings per share were in line with the
Zacks Consensus Estimate.
Valmont, which is among the prominent steel-pipe and tube
companies along with MRC Global Inc. (
), Mueller Water Products, Inc. (
) and Tenaris SA (
), registered revenues of $842.6 million in the quarter, down 4.1%
from $878.7 million in the year-ago quarter. The decrease was
mainly due to lower sales in the Utility Support Structures,
Coatings and Irrigation segments. Sales lagged the Zacks Consensus
Estimate of $860 million.
Valmont currently carries a Zacks Rank #3 (Hold).
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