Valmont Industries Inc.
) fourth-quarter 2012 earnings of $2.43 per share outstripped the
Zacks Consensus Estimate of $2.24, while declining from the
prior-year quarter's earnings of $4.33 per share.
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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.
For full-year 2012, earnings came in at $8.75 per share, also
topping the Zacks Consensus Estimate of $8.56.
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.
For the full year, revenues jumped 14% year over year to $3,029.5
million, essentially in line with the Zacks Consensus Estimate.
Revenues from the Utility Support Structures division soared 25%
year over year to $252.6 million in the fourth quarter, driven by
higher demand from utility companies in North America as they
continue to upgrade transmission grid. International sales rose
on higher export revenues from China.
Irrigation Segment sales jumped 13% year over year to $203.4
million as high crop pricing supported demand in North America.
However, international revenues fell in the quarter.
The Engineered Infrastructure Products division logged sales of
$229.1 million, up 4% year over year. Revenues from lighting and
traffic products were flat in North America. European lighting
and traffic structure sales fell due to a weak economy. Sales
rose across all product lines in Asia-Pacific. Sales of wireless
communication structures and components increased in North
America while declining in China
Revenues from the Coatings segment dipped 7% to $83.2 million on
lower demand in Australia. Sales were flat in North America as
higher internal irrigation and utility demand was masked by lower
Valmont exited 2012 with cash and cash equivalents of $414.1
million, up 14% year over year. Total long-term debt was stable
year over year at $472.8 million.
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 #2 (Buy).