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9 MONTHS: VALMONT'S SALES DOWN 4%, EARNING'S UP 235%: $271 MILLION
Source: Valmont Industries news release

OMAHA, Neb.-- Valmont Industries, Inc. (NYSE: VMI), a global leader that provides vital infrastructure and advances agricultural productivity while driving innovation through technology, today reported financial results for the third quarter ended September 28, 2024.

President and Chief Executive Officer Avner M. Applbaum commented, "Our team delivered another solid quarter, expanding operating margins and generating strong operating cash flows despite lower sales. The Infrastructure segment benefited from strong utility market demand and an improving telecommunications market in North America. Pricing discipline, a more favorable product mix, and a leaner cost structure contributed to margin improvement.

In Agriculture, while North American and Brazilian markets remain muted, I'm proud of our swift response in supplying replacement equipment to support our dealers following the Midwest U.S. storms earlier this year. I want to thank the Valmont team for their hard work and execution in delivering higher operating margins and cash flows. Overall, I'm pleased with our continued progress towards our strategic priorities and creating long-term value for our stakeholders."

Third Quarter 2024 Highlights (all metrics compared to Third Quarter 2023 unless otherwise noted)

*Net sales of $1.0 billion decreased 2.9%, as strong growth in Transmission, Distribution, and Substation ("Utility") and Telecommunications was offset by lower sales in Solar and international Agriculture, specifically Brazil

*Operating income increased to $125.7 million or 12.3% of net sales compared to an operating loss of ($24.2) million [adjusted 1 operating income of $120.8 million or 11.5% of net sales]

*Diluted earnings per share ("EPS") of $4.11 compared to diluted loss per share of ($2.34) [$4.12 EPS adjusted 1 ]

*Generated operating cash flows of $225.1 million; cash and cash equivalents at the end of the third quarter were $200.5 million

*Returned $52.2 million to shareholders through share repurchases and dividends

*Reduced revolving credit facility borrowings by approximately $120.0 million

*Reaffirming 2024 full-year financial outlook

Agriculture (25.9% of Net Sales)

Center pivot and linear irrigation equipment components for agricultural markets, including aftermarket parts and tubular products, and advanced technology solutions for precision agriculture

Sales of $265.3 million decreased 11.1% year over year. In North America, irrigation equipment volumes were slightly lower. An increase in replacement sales driven by severe weather events earlier in 2024 was offset by continued agriculture market softness amid lower grain prices. Average irrigation selling prices were similar to last year.

International sales decreased year over year, with significantly lower sales in Brazil due to normalizing backlog levels and lower grain prices, which impacted growers' buying behavior. This decline was partially offset by sales growth in the Europe, Middle East, and Africa ("EMEA") region and the contribution from the HR Products acquisition.

Operating income was $28.9 million or 11.0% of net sales compared to an operating loss of ($99.7) million [adjusted 1 operating income of $38.5 million or 13.0% of net sales] in the third quarter of 2023. The benefit of reduced SG&A expenses was offset by the impact of lower volumes and a higher mix of project sales.

To read the entire report click here.


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