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Dec 25, 2021
Valmont Q4 2021 Earnings Report
Reported record annual sales and solid fourth-quarter performance, managing operations effectively amidst inflation and supply chain challenges.
Key Takeaways
Valmont Industries reported a strong fourth quarter and full year 2021, achieving record annual sales of $3.5 billion. The company's Q4 net sales increased by 20.7% to $963.3 million, driven by growth in all segments, particularly Irrigation. Adjusted operating income grew by 24.4% year-over-year, and adjusted diluted earnings per share increased by 26.0%.
Record net sales of $963.3 million, a 20.7% increase, with growth across all segments.
Operating income of $50.8 million, or 5.3% of sales, compared to $54.1 million, or 6.8% of sales in Q4 2020.
Diluted EPS of $1.25 compared to $1.68 in Q4 2020.
Record year-end backlog of more than $1.6 billion, a 40.0% increase since the end of fiscal 2020.
Valmont
Valmont
Forward Guidance
Valmont is increasing its 2022 full-year net sales and diluted earnings per share outlook. Net Sales are estimated to be $3.8 - $4.0 billion, an increase of 9.0% - 14.0% vs. prior year. Diluted Earnings per Share are estimated to be $11.55 - $12.30 GAAP ($12.25 - $13.00 adjusted).
Positive Outlook
- Record backlog of more than $1.6 billion reflects strong global market demand.
- Customers' confidence in the ability to deliver products and innovative solutions.
- Implementation of pricing strategies to recover the impact of broad-based inflation.
- Strong balance sheet and cash flows provide flexibility to execute the long-term strategic plan.
- Focus on long-term growth, with an emphasis on ESG principles, return on invested capital, operational excellence, and recurring technology revenue.
Challenges Ahead
- Unfavorable foreign currency translation impact of approximately 1.0% of Net Sales
- Tax rate of approximately 25.0%
- Capital expenditures to be in the range of $110.0 - $120.0 million to support strategic growth initiatives and Industry 4.0 advanced manufacturing initiatives