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FULL YEAR: VALMONT'S SALES UP 9%, NET EARNINGS UP 17%
Source: Valmont news release

To view the complete report, click here.

Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure and mechanized irrigation equipment for agriculture, reported fourth quarter sales of $827.9 million compared with $815.0 million for the same period of 2012. Fourth quarter 2013 operating income was $100.7 million versus $111.7 million in 2012 and included $12.2 million of a non-cash fixed asset impairment charge at Delta EMD.

Fourth quarter diluted earnings per share were $2.04 compared with $2.43 in 2012. Included in fourth quarter earnings per share is an additional non-cash after-tax loss in the amount of $12.0 million or $0.45 cents per share resulting from the deconsolidation of Delta EMD and Valmont's proportionate share of the after-tax Delta EMD fixed asset impairment in the amount of $4.6 million, or $0.17 per diluted share.

For fiscal 2013, sales were $3.3 billion versus $3.0 billion in 2012. Operating income for fiscal 2013 was $473.1 million versus $382.3 million in 2012. Valmont's fiscal year net earnings were $278.5 million, or $10.35 per diluted share ($10.97 before consideration of the Delta EMD impairment and deconsolidation), compared with 2012 fiscal year earnings of $234.1 million, or $8.75 per diluted share.

Irrigation Segment (23% of 4th Quarter Sales)

Center pivot and linear move mechanized irrigation equipment and parts for agriculture in global markets.

Sales of $192.2 million declined 6% from last year's drought-driven record fourth quarter. In North America, the fourth quarter selling season reflected a more typical harvest season than last year.

Last year's harvest was early, on account of dry conditions, which resulted in a more prolonged than usual fall selling season. The shorter selling season plus lower crop commodity prices contributed to the lower orders and sales, as evidenced by a decline in year-end backlogs. Growth continued in international markets.

While short-term swings in the farm economy can influence annual demand, long-term demand will be driven by the growing food needs of a rising global population and improving diets. To meet these needs, agriculture must increase its productivity.

Competing demands on limited fresh water resources will drive agriculture to conserve water. Valmont's efficient irrigation products provide a lasting solution to these pressing problems, which we believe supports a favorable long-term outlook for this business.

Operating income was 22% lower than last year at $31.6 million or 16.5% of segment sales. The decline in operating income was a consequence of deleverage on lower volumes and planned business development efforts that increased SG&A expenses.


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