Loading...
•
Sep 25, 2021
Valmont Q3 2021 Earnings Report
Valmont reported strong sales and operating performance, driven by focused pricing actions and growth strategies.
Key Takeaways
Valmont Industries reported record third-quarter net sales of $868.8 million, an 18.4% increase, with growth in all segments led by significantly higher Irrigation sales. Diluted earnings per share improved to $2.40 ($2.57 adjusted). The company is raising the bottom end of full-year GAAP diluted EPS guidance to a new range of $10.10 to $10.60.
Record Third-Quarter Net Sales of $868.8 million, an increase of 18.4%, with growth in all segments led by significantly higher Irrigation sales
Operating Income improved to $76.2 million, or 8.8% of sales compared to $61.5 million or 8.4% of sales last year, despite ongoing inflationary pressures and supply chain disruptions
Diluted Earnings per Share (EPS) improved to $2.40 ($2.57 adjusted) compared to $1.84 ($1.99 adjusted)
Record global backlog of more than $1.5 billion, an increase of 35.0% since the end of fiscal 2020, reflecting improved pricing and continued strong market demand
Valmont
Valmont
Forward Guidance
The Company is raising the bottom end of its full-year diluted EPS guidance range and reaffirming key assumptions for the remainder of 2021. GAAP diluted EPS is now expected to be $10.10 to $10.60 and adjusted diluted EPS is now expected to be $10.60 to $11.10. Full-year Net Sales growth is expected to be 17% to 18%, and Irrigation segment sales growth is expected to be 50% to 53%.
Positive Outlook
- Favorable foreign currency translation impact of approximately 1.0% of Net Sales
- Fourth quarter tax rate of approximately 24.0%
- Capital expenditures to be in the range of $110 - $120 million to support strategic growth and Industry 4.0 advanced manufacturing initiatives
- Strong market demand
- Strength of operations
Challenges Ahead
- No pandemic-driven closures of large manufacturing facilities
- Workforce disruptions
- Significant supply chain interruptions
- Continued steel cost increases
- Inflation