Valmont Industries Inc
) first-quarter 2013 earnings of $2.89 per share outpaced the
Zacks Consensus Estimate of $2.50 and exceeded the year-ago
earnings of $1.96 by roughly 47% .
Valmont realized a one-time tax benefit of $3.2 million as a
result of the divestment of a non-consolidated South African
subsidiary. The net effect of the transaction for the quarter was
a benefit of 6 cents per share. Two acquisitions, Pure Metal and
Locker, added about a penny to earnings per share in the
Valmont, which is among the prominent steel-pipe and tube
companies along with
MRC Global Inc.
Edgen Group Inc.
), posted revenues of $819.6 million in the first quarter, up
roughly 14% year over year. It exceeded the Zacks Consensus
Estimate of $809 million. Revenues were driven by strong sales
growth in both the Utility Support Structures and Irrigation
segments, and acquisition-driven sales growth.
Revenues from the Utility Support Structures division increased
25.3% year over year to $239.6 million in the first quarter,
driven by higher demand in North America. Utility orders shipped
in the reported quarter were at improved pricing levels compared
to the year-ago quarter. The international utility markets were
supported by increased sales in the Asia Pacific region and
Valmont's utility plants operated at high production and
efficiency levels during the first quarter, and the company
continues to leverage its global capacity.
Irrigation segment sales rose 24.7% to $244.7 million in the
reported quarter, led by increased North American demand. Demand
was supported by high levels of farm income and the impact of
last summer's drought in North America. In the international
markets, sales increased on the back of strong global crop demand
and historically high farm income levels.
The Engineered Infrastructure Products division logged sales
of $223.7 million, up 9.7% year over year. Revenues from lighting
and traffic products were flat in North America and were lower in
Europe due to continued economic weakness in the region.
Revenues from the Coatings segment jumped 7.7% to $89.2
million due to the impact of recent acquisitions. Demand fell in
Australia in the beginning of the year, offset by increased
internal demand in North America.
Valmont's cash and cash equivalents stood at $420 million as
of Mar 31, 2013, compared with of $339.6 million as of Mar 31,
2012. Total long-term debt declined 0.4% year over year to $472.2
Moving ahead, Valmont expects continued strength in its utility
business in 2013, manifested by healthy order backlogs. It also
expects a strong second quarter for the Irrigation division. The
demand for the Irrigation segment for second quarter will depend
on growing conditions, commodity prices and the expectations for
farm income later in the year.
Valmont expects improved sales and operating comparisons in
the engineered infrastructure products segment for the rest of
2013. For the coatings segment, Valmont expects its performance
to improve over the balance of the year as it fully integrates
the Pure Metal acquisition and sees improved demand in
Valmont currently carries a Zacks Rank #3 (Hold).
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