Loading...
•
Mar 26, 2022
Valmont Q1 2022 Earnings Report
Achieved record first-quarter sales and earnings per share.
Key Takeaways
Valmont Industries reported a strong first quarter in 2022, achieving record net sales of $980.8 million, a 26.6% increase compared to the first quarter of 2021. The company's diluted earnings per share (EPS) also reached a record of $2.90 ($3.07 adjusted).
First Quarter Record Net Sales increased 26.6% to $980.8 million.
Operating Income increased to $94.8 million, or 9.7% of net sales compared to $77.2 million or 10.0% of net sales.
First Quarter Record Diluted Earnings per Share (EPS) of $2.90 compared to $2.57.
Record backlog of $1.8 billion, reflecting improved pricing and continued strong market demand across the portfolio.
Valmont
Valmont
Forward Guidance
The Company is increasing its 2022 full-year net sales and diluted earnings per share outlook from the previous indications that were communicated last quarter, and is providing key assumptions for the year.
Positive Outlook
- We've had a very strong start to the year, as our teams have continued to execute from a position of strength to drive growth and performance, with significant momentum supported by strong, global market drivers across our businesses.
- We entered the second quarter with a record backlog of more than $1.8 billion, reflecting strong market demand and providing a solid line of sight for us through 2022.
- In the Infrastructure segment, the need for critical infrastructure investment globally gives us confidence in the long-term market growth trends.
- In Agriculture, favorable market trends globally are providing strong momentum.
- Across the portfolio, we continue to execute pricing strategies to manage broad-based inflation and leverage the strength of our organization and global supply chain to deliver value-added products and innovative solutions to our customers.
Challenges Ahead
- 2022 tax rate of approximately 26.5% due to the expected geographic mix of earnings
- Capital expenditures to be in the range of $110.0 - $120.0 million to support strategic growth and Industry 4.0 advanced manufacturing initiatives
- No expected foreign currency translation impact on net sales vs. prior year
- Tax rate ~ 25.0% Previous Outlook
- FX Translation Impact on Net Sales~ 1.0% Previous Outlook