July 27, 2012

Valmont's Q2 sales up to US$767.3 million

Valmont Industries, Inc. (VMI) reported for the second quarter sales of US$767.3 million compared with US$668.6 million for the same period of 2011.

Valmont Industries, Inc., a leading global manufacturer of engineered products for infrastructure, mechanized irrigation equipment for agriculture, and a provider of coating services, reported second quarter 2012 operating income was US$97.4 million versus US$68.6 million in 2011. Second quarter 2012 net earnings were US$60.0 million, or US$2.24 per diluted share, versus second quarter 2011 net earnings of US$45.8 million, or US$1.72 per diluted share.

For the first six months of 2012, sales were US$1,484.7 million versus US$1,236.6 million in 2011. Valmont's first half net earnings were US$112.3 million, or US$4.20 per diluted share, compared with 2011 first half net earnings of US$71.4 million, or US$2.69 per diluted share.

Centre pivot and linear move mechanised irrigation equipment and parts for agriculture in global markets.

Sales rose 6% to US$194.5 million surpassing last year's record second quarter and bringing the year to date sales growth to 17%. Sales revenue increases occurred in both North American and international markets, supported by positive fundamental drivers in the global agricultural economy.

Population growth and diets richer in protein have led to an increase in the global demand for feed-grains. This has supported grain prices, resulting in near record levels of farm income in the US Farmers around the world seeking to improve productivity continue to invest in efficient irrigation equipment to increase production. Productivity is improved with mechanised irrigation equipment as yields increase while water use decreases compared with flood irrigation methods.

Operating income grew 14% to a second quarter record of US$37.6 million and was 19.3% of segment sales.