Valmont Industries, Inc.
) has announced the sale of Bilston Investments Proprietary
Limited, a South African holding company, which it purchased as
part of the Delta plc acquisition. The shares of Bilston were
bought by three South African purchasers for $30 million.
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Bilston, which was the South African holding company of Delta
Plc, held a 49% stake in Manganese Metal Company, a
non-consolidated subsidiary. Valmont expects to realize certain
deferred tax benefits of about $3 million associated with the
sale in 2013.
Valmont recently released its fourth-quarter 2012 results.
Earnings of $2.43 per share for the quarter outpaced the Zacks
Consensus Estimate of $2.24, but declined from the prior-year
quarter earnings of $4.33 per share.
Profit slid roughly 43% year over year to $65 million in the
reported quarter. The year-ago quarter's profit was boosted by
one-time benefits associated with the reorganization of the
company's legal structure. Barring that benefit, earnings were
$1.83 per share a year ago.
Valmont, which is among the prominent steel-pipe and tube
companies along with
MRC Global Inc.
), posted revenues of $815 million in the fourth quarter, up 8%
year over year. It exceeded the Zacks Consensus Estimate of $792
million. Sales were driven by double-digit gains across the
company's Utility Support Structures and Irrigation segments.
Moving ahead, Valmont expects continued strength in its utility
business in 2013, manifested by healthy order backlogs. It also
expects a strong first half in the Irrigation division.
Valmont expects healthy demand for the Coatings segment.
Moreover, it envisions modest sales gains in the Engineered
Infrastructure Products unit despite the government spending
constraint. The company foresees low-teens revenue increase and
high-teens earnings gain in 2013.
Valmont currently retains a Zacks Rank #1 (Strong Buy).