Loading...
•
Dec 26, 2020
Valmont Q4 2020 Earnings Report
Valmont experienced sales and earnings growth driven by strong demand in Utility Support Structures and Irrigation segments.
Key Takeaways
Valmont Industries reported a 16.8% increase in net sales, led by Irrigation and Utility Support Structures. Diluted EPS improved to $1.68 ($2.20 adjusted). The company recognized a favorable tax rate and a record year-end backlog of over $1.1 billion.
Net Sales increased 16.8% driven by Irrigation and Utility Support Structures.
Diluted Earnings per Share (EPS) improved to $1.68 ($2.20 adjusted).
Record year-end backlog of more than $1.1 billion, reflecting strong market demand.
Commenced shipments for the Egypt market irrigation project.
Valmont
Valmont
Forward Guidance
Valmont anticipates net sales to increase by 9.0% - 14.0% and diluted earnings per share to be $9.00 - $9.70 for the full year 2021.
Positive Outlook
- Expect to benefit from market tailwinds across global markets.
- Backlog in the Utility Support Structures segment remains at elevated levels.
- Growing demand in wireless communications markets as 5G build-outs continue to ramp.
- The large, multi-year project for Egypt and favorable market trends globally are providing strong momentum in Irrigation.
- Implemented pricing strategies to recover the impact of unprecedented raw material cost increases.
Challenges Ahead
- Certain aspects of the pandemic's impact on global economic factors and pace of economic recovery remain uncertain.
- Significant raw material cost inflation will negatively impact gross profit margins in the Utility Support Structures in the first half of 2021.
- Tax rate between 24.0% - 25.0%.
- Potential adjustments to the 2021 financial outlook in future quarters.
- Divest the Access Systems product line.