Valmont Tops Estimates in 4Q - Analyst Blog
February 14 2013 - 3:50AM
Zacks
Valmont Industries
Inc.’s (VMI) fourth-quarter 2012 earnings of $2.43 per
share outstripped the Zacks Consensus Estimate of $2.24, while
declining from the prior-year quarter’s earnings of $4.33 per
share.
Profit slid roughly 43% year over year to $65 million in the
reported quarter. The year-ago quarter’s profit was boosted by
one-time benefits associated with the reorganization of the
company's legal structure. Barring that benefit, earnings were
$1.83 per share a year ago.
For full-year 2012, earnings came in at $8.75 per share, also
topping the Zacks Consensus Estimate of $8.56.
Valmont, which is among the prominent steel-pipe and tube companies
along with MRC Global Inc. (MRC), Synalloy
Corp. (SYNL) and Tenaris SA (TS), posted
revenues of $815 million in the fourth quarter, up 8% year over
year. It exceeded the Zacks Consensus Estimate of $792 million.
Sales were driven by double-digit gains across the company’s
Utility Support Structures and Irrigation segments.
For the full year, revenues jumped 14% year over year to $3,029.5
million, essentially in line with the Zacks Consensus Estimate.
Segment Highlights
Revenues from the Utility Support Structures division soared 25%
year over year to $252.6 million in the fourth quarter, driven by
higher demand from utility companies in North America as they
continue to upgrade transmission grid. International sales rose on
higher export revenues from China.
Irrigation Segment sales jumped 13% year over year to $203.4
million as high crop pricing supported demand in North America.
However, international revenues fell in the quarter.
The Engineered Infrastructure Products division logged sales of
$229.1 million, up 4% year over year. Revenues from lighting and
traffic products were flat in North America. European lighting and
traffic structure sales fell due to a weak economy. Sales rose
across all product lines in Asia-Pacific. Sales of wireless
communication structures and components increased in North America
while declining in China
Revenues from the Coatings segment dipped 7% to $83.2 million on
lower demand in Australia. Sales were flat in North America as
higher internal irrigation and utility demand was masked by lower
custom demand.
Financial Position
Valmont exited 2012 with cash and cash equivalents of $414.1
million, up 14% year over year. Total long-term debt was stable
year over year at $472.8 million.
Outlook
Moving ahead, Valmont expects continued strength in its utility
business in 2013, manifested by healthy order backlogs. It also
expects a strong first half in the Irrigation division.
Valmont expects healthy demand for the Coatings segment. Moreover,
it envisions modest sales gains in the Engineered Infrastructure
Products unit despite the government spending constraint. The
company foresees low-teens revenue increase and high-teens earnings
gain in 2013.
Valmont currently retains a Zacks Rank #2 (Buy).
MRC GLOBAL INC (MRC): Free Stock Analysis Report
SYNALLOY CORP (SYNL): Free Stock Analysis Report
TENARIS SA-ADR (TS): Free Stock Analysis Report
VALMONT INDS (VMI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
MRC Global (NYSE:MRC)
Historical Stock Chart
From May 2024 to Jun 2024
MRC Global (NYSE:MRC)
Historical Stock Chart
From Jun 2023 to Jun 2024