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Jun 27, 2020
Valmont Q2 2020 Earnings Report
Valmont's operating performance improved despite COVID-19 disruptions.
Key Takeaways
Valmont reported a decrease in net sales by 1.7% to $688.8 million, but experienced improved profitability in most segments. Operating income was $43.4 million, and diluted earnings per share were $1.06. The company generated strong operating cash flow of $88.3 million and completed two acquisitions in the Irrigation segment.
Net Sales declined 1.7% to $688.8 million.
Operating Income was $43.4 million, or 6.3% of sales.
Diluted Earnings per Share were $1.06.
Generated strong operating cash flow of $88.3 million.
Forward Guidance
Valmont provided key assumptions and indications for the third quarter 2020, including net sales between $680.0 to $700.0M and an operating profit margin of 8.0% to 9.0%.
Positive Outlook
- Utility Support Structures sales estimate driven by higher sales in international businesses
- Tax rate of ~ 25.0%
- Positive operating cash flows
- Stable raw material costs and no significant supply chain interruptions
- No closures of large manufacturing facilities or workforce disruptions
Challenges Ahead
- The pandemic's impacts on global economic factors and pace of economic recovery remain unclear
- Unfavorable currency translation on net sales of $7.0M – $9.0M
- Closures of large manufacturing facilities
- Workforce disruptions
Historical Earnings Impact
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Avg. Return Before/After Earnings
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