Valmont Q1 2021 Earnings Report
Key Takeaways
Valmont Industries reported a strong first quarter in 2021, with net sales increasing by 14.9% to $774.9 million and diluted earnings per share improving by 29.1% to $2.57. The company's performance was driven by higher sales in Irrigation and Utility Support Structures, and proactive pricing actions helped offset inflationary pressures.
Net Sales increased 14.9% to $774.9 million, led by Irrigation and Utility Support Structures.
Operating Income increased 15.4% to $77.2 million, representing 10.0% of sales.
Diluted Earnings per Share (EPS) improved 29.1% to $2.57.
Record global backlog of more than $1.3 billion, reflecting strong market demand.
Valmont
Valmont
Forward Guidance
The company estimates 2Q net sales to be $805.0 - $830.0 million, an increase of 17.0% - 20.0% vs. prior year, and reaffirms full year 2021 financial outlook and key assumptions.
Positive Outlook
- 2Q Net Sales estimated to be $805.0 - $830.0 million, an increase of 17.0% - 20.0% vs. prior year
- Reaffirming Net Sales estimated to increase 9.0% - 14.0% vs. prior year
- Favorable foreign currency translation impact of approximately 2.0% of Net Sales
- Irrigation segment sales estimated to significantly increase 27.0% - 30.0% vs. prior year
- Diluted Earnings per Share estimated to be $9.00 - $9.70
Challenges Ahead
- 2Q Operating Profit Margin estimated to be 9.5% - 10.5%
- Tax rate between 23.0% - 24.0%
- In Utility Support Structures, significant raw material cost inflation negatively impacting gross profit margins in the first half of 2021
- Second half 2021 tax rate between 24.0% - 25.0%; no tax law changes
- Capital expenditures to be in the range of $110 - $120 million to support strategic growth initiatives and Industry 4.0 advanced manufacturing initiatives