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Source: Valmont Industries news release

OMAHA, Neb.--Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure development and irrigation equipment and services for agriculture, today reported financial results for the fourth quarter and fiscal year ended December 26, 2020.

*Net Sales of $2.9 billion increased 4.6%

*Significantly higher sales in the Utility Support Structures and Irrigation segments were partially offset by lower sales in the Engineered Support Structures and Coatings segments due to COVID-19 impacts; excluding $22.2 million of unfavorable currency impacts, sales grew 5.4%

*Operating Income of $226.0 million, or 7.8% of sales ($268.5 million or 9.3% of sales adjusted1) compared to $227.9 million or 8.2% of sales last year; profitability was similar to last year on a GAAP basis, and increased $40.6 million, or 17.8% on an adjusted basis

*Profitability improvement was led by higher volumes in Utility Support Structures and Irrigation, and favorable pricing in Engineered Support Structures
Operational performance improved in all segments except Coatings, where end-market demand was negatively impacted by COVID-19

*Diluted Earnings per Share of $6.57 ($8.18 adjusted1) compared to $6.73; EPS decreased $0.16, or 2.4% on a GAAP basis and increased $1.45, or 21.5% on an adjusted basis
Generated strong operating cash flow of $316.3 million, driven by higher receipts of customer advance payments and other working capital management initiatives; strong liquidity led to a reinstatement of share repurchases in September, with year-end 2020 cash and cash equivalents of $400.7 million

*Capital expenditures were $107.0 million, including $42.0 million for strategic investments, which included capacity expansions in existing North American operations, a greenfield expansion in Pittsburgh, PA in the Coatings segment, and technology investments to support global market growth

*Deployed $75.3 million of cash for strategic acquisitions, including $15.9 million inclusive of two acquisitions in the Irrigation segment: Solbras and PrecisionKing, and $59.4 million for the remaining stakes in AgSense and Torrent Engineering and Equipment
Returned $93.4 million of capital to shareholders through share repurchases of $56.5 million and dividends of $36.9 million

*Advanced ESG to be a top strategic imperative, including formation of a CEO-led ESG Taskforce, elevating our tagline of 'Conserving Resources. Improving Life.'

To read the entire report click here.

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