Valmont Announces First Quarter 2013 Results

                 Valmont Announces First Quarter 2013 Results

Highlights:

- First quarter sales increased 14%, operating income rose 43%.

- First quarter net earnings increased 48%, fully diluted earnings per share
climbed 47%.

- First quarter Utility Support Structures Segment sales rose 25%, operating
income increased 84%.

- First quarter Irrigation Segment sales improved 25%, operating income
increased 42%.

PR Newswire

OMAHA, Neb., April 18, 2013

OMAHA, Neb., April 18, 2013 /PRNewswire/ -- Valmont Industries, Inc. (NYSE:
VMI), a leading global provider of engineered products and services for
infrastructure and mechanized irrigation equipment for agriculture, reported
first quarter sales of $819.6 million compared with $717.4 million for the
same period of 2012. First quarter 2013 operating income was $118.2 million
versus $82.8 million in 2012. First quarter net income was $77.6 million
versus $52.3 million in 2012, which resulted in an increase in quarterly
diluted earnings per share from $1.96 in 2012 to $2.89 in 2013.

During the quarter, the Company divested a non-consolidated South African
subsidiary. As a consequence, a $3.2 million benefit, ($0.12 earnings per
share), was realized due to the release of certain deferred tax liabilities
and corresponding reduction in tax expense. This reduced the first quarter
corporate tax rate to 31.0%. On February 4, 2013, the Company acquired
Australian based Locker Group, a manufacturer of perforated and expanded metal
and access systems. In addition, the first full quarter of results from the
December 2012 acquisition of Pure Metal, a Canadian galvanizing operation,
were realized during the quarter. Management estimates the positive collective
impact of the above items on first quarter revenue and diluted earnings per
share were approximately $19.8 million and $0.07 per-share respectively.

First Quarter Review:

Two of Valmont's segments, Utility Support Structures and Irrigation, each had
25% year-over-year sales increases. Sales growth was also realized in our
Engineered Infrastructure Products and Coatings segments, in part due to
acquisitions.

Quarterly operating income rose primarily due to increased volumes combined
with favorable mix in the Utility Support Structures and Irrigation Segments,
where strong demand allowed efficient use of our manufacturing facilities.

Quarterly operating income as a percent of net sales increased to 14.4% from
last year's 11.5%, driven by higher gross profit margins and volume leverage.

First Quarter Segment Review:

Utility Support Structures Segment(27% of 1st Quarter Sales)
Steel and concrete structures for the global electric utility industry.

Sales of $239.6 million were 25% higher than 2012, driven by increased demand
for transmission structures in North America, combined with higher
international utility sales, which were largely driven by projects shipped
during the quarter.

The greatest driver of North American demand is the ongoing expansion of the
nation's transmission grid. To increase the capacity of the grid while also
improving its interconnectivity and reliability, electric utilities are making
substantial investments in transmission infrastructure. Utility customers are
drawing upon Valmont's engineering capability and manufacturing capacity to
support this substantial long-term undertaking. With 14 utility manufacturing
facilities in North America, and a global network of large-pole plants, we
believe Valmont is well positioned to maintain a leadership role as the
utility industry continues to expand the grid.

The main drivers of international sales growth were utility structures demand
in Australia, and project sales to developing markets.

Operating income rose 84% to $46.2 million, which represents 19.3% of sales.
The increase in operating income was due to a favorable mix of sales and the
positive impact of volume and SG&A leverage.

Irrigation Segment (28% of 1st Quarter Sales)
Center pivot and linear move mechanized irrigation equipment and parts for
agriculture in global markets.

Sales rose 25% to $244.7 million, primarily led by increased North American
demand. Historically high crop commodity prices and farm income helped drive
record first quarter sales. Following last summer's severe drought in North
America, heightened appreciation of the benefits of mechanized irrigation lent
additional support to demand.

In international markets, sales increased, although at a lower rate than in
North America. Strong global crop demand and historically high farm income
levels contributed to the sales increase.

The long-term drivers for the irrigation market remain compelling. World
population growth and dietary improvement create a need for increased food
supplies. Limits to water availability create pressures on agriculture to
reduce its share of water use. Valmont's mechanized irrigation equipment helps
address these global dilemmas by improving farm production and using water
more efficiently.

Operating income grew 42% to $54.6 million and was 22.3% of segment sales. The
improvement in operating income was due to strong volumes and favorable
margins.

Engineered Infrastructure Products Segment(26% of 1st Quarter Sales)
Lighting, traffic and highway safety products, wireless communication
structures and components, and industrial gratings and access systems
worldwide.

First quarter sales were $223.7 million, a 10% increase over 2012. While total
segment sales rose, the increase essentially reflects the addition of Locker
Group and higher intercompany sales.

In North America, lighting and traffic products sales were similar to last
year. Lighting and traffic product sales in Europe were below last year's
levels mostly due to continued economic weakness in the region.

Webforge engineered access systems, and highway products sales were comparable
to last year in the Asia-Pacific region.

Wireless communication structures and components sales rose in North America
and declined in China.

The current global lighting and traffic market environment remains under
pressure as government spending is constrained by austerity measures. This
leads to a highly competitive market and a weak pricing environment. Wireless
communication product sales are currently benefitting from increased
deployment of 4G technologies. Other businesses within Engineered
Infrastructure Products participate in diverse markets and are supported at
historic demand levels.

Valmont believes that investments in infrastructure are necessary to drive
economic growth. With its diverse mix of Engineered Infrastructure Products,
Valmont is well positioned to participate in economic development around the
globe.

Despite mostly weak markets, the quality of earnings in this segment improved.
Operating income was $12.7 million, or 5.7% of segment sales compared with
last year's 4.0%. This increase was primarily driven by improvements in North
American wireless communication products, intercompany sales and a lower cost
structure than last year.

Coatings Segment (10% of 1st Quarter Sales)
Hot-dip galvanizing, and other coatings to protect against corrosion of steel
and aluminum in global markets.

Sales of $89.2 million were 8% higher than last year driven by the acquisition
of Pure Metal. In the Asia-Pacific region, sales declined due to reduced
volumes and a more competitive market environment in Australia.

Operating income declined 19% to $13.4 million, or 15.0% of segment sales due
to the reduction in Australian volumes, integration costs tied to the Pure
Metal acquisition and unfavorable factory productivity in certain galvanizing
plants.

2013 Outlook:

"Our outlook for the Utility Support Structures Segment is improving for the
year," said Mogens C. Bay, Valmont's Chairman and Chief Executive Officer. "As
is always the case, Utility Support Structures operating margins may vary from
quarter to quarter, depending on sales mix and the timing of shipments.

"In the Irrigation Segment, given the current backlog, we are expecting a
strong second quarter. Second-half demand will largely be based on growing
conditions, commodity prices and the expectations for farm income later in the
year.

"In the Engineered Infrastructure Products Segment, we are moving into the
seasonally stronger time of year. When combined with actions taken over the
past few years to streamline costs, we expect improved sales and operating
comparisons in the Engineered Infrastructure Products Segment for the rest of
year.

"We expect Coatings Segment performance to improve over the balance of the
year as we move to fully integrate the Pure Metal acquisition and expect
improved demand in Australia.

"In summary, with the strong first quarter results, the continued strength in
the utility markets and the anticipated improvement in Engineered
Infrastructure Products, it should be possible for us to exceed our February
guidance even if Irrigation results in the second half were below 2012's
record second half levels," said Mr. Bay.

An audio discussion of Valmont's first quarter results by Mogens C. Bay,
Chairman and Chief Executive Officer and Richard P. Heyse, Executive Vice
President and Chief Financial Officer, will be available live by telephone by
dialing 1-877-493-2981 and entering Conference ID#:  98701424 or via the
Internet at 8:00 a.m. CDT April 19, 2013, by pointing browsers to:
http://www.valmont.com/page.aspx?id=445&pid=21. After the event you may listen
by accessing the above link or by telephone. Dial 1-855-859-2056 or
404-537-3406, and enter the Conference ID#:  98701424  beginning April 19,
2013 at 10:00 a.m. CDT through 12:00 p.m. CDT on April 26, 2013.

Valmont is a global leader in designing and manufacturing poles, towers and
structures for lighting and traffic, wireless communication and utility
markets, industrial access systems, highway safety barriers and a provider of
protective coating services. Valmont also leads the world in mechanized
irrigation equipment for agriculture, enhancing food production while
conserving and protecting natural water resources. In addition, Valmont
produces a wide variety of tubing for commercial and industrial applications.

This release contains forward-looking statements, within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on assumptions that management has made in light of
experience in the industries in which Valmont operates, as well as
management's perceptions of historical trends, current conditions, expected
future developments and other factors believed to be appropriate under the
circumstances. As you read and consider this release, you should understand
that these statements are not guarantees of performance or results. They
involve risks, uncertainties (some of which are beyond Valmont's control) and
assumptions. Although management believes that these forward-looking
statements are based on reasonable assumptions, you should be aware that many
factors could affect Valmont's actual financial results and cause them to
differ materially from those anticipated in the forward-looking statements.
These factors include among other things, risk factors described from time to
time in Valmont's reports to the Securities and Exchange Commission, as well
as future economic and market circumstances, industry conditions, company
performance and financial results, operating efficiencies, availability and
price of raw material, availability and market acceptance of new products,
product pricing, domestic and international competitive environments, and
actions and policy changes of domestic and foreign governments. The Company
cautions that any forward-looking statement included in this press release is
made as of the date of this press release and the Company does not undertake
to update any forward-looking statement.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in thousands, except per share amounts)
(unaudited)
                                                    First Quarter
                                                    13 Weeks Ended
                                                    30-Mar-13     31-Mar-12
Net sales                                           $ 819,630     $ 717,350
Cost of sales                                       584,261       531,036
 Gross profit                              235,369       186,314
Selling, general and administrative expenses        117,179       103,496
 Operating income                         118,190       82,818
Other income (expense):
 Interest expense                               (8,190)       (7,807)
 Interest income                                1,353         2,078
 Other                                          1,556         1,577
                                                    (5,281)       (4,152)
 Earnings before income taxes and equity
in
 earnings of nonconsolidated               112,909       78,666
subsidiaries
Income tax expense                                  34,973        27,766
 Earnings before equity in earnings of
 nonconsolidated subsidiaries             77,936        50,900
Equity in earnings of nonconsolidated subsidiaries  204           1,688
 Net earnings                              78,140        52,588
Less: Earnings attributable to non-controlling     (571)         (263)
interests
 Net earnings attributable to Valmont      $  77,569    $  52,325
Industries, Inc.
Average shares outstanding (000's) - Basic          26,583        26,396
Earnings per share - Basic                          $    2.92  $    1.98
Average shares outstanding (000's) - Diluted        26,859        26,678
Earnings per share - Diluted                        $    2.89  $    1.96
Cash dividends per share                            $   0.225   $   0.180

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Dollars in thousands)
(unaudited)
                                         First Quarter
                                         13 Weeks Ended
                                         30-Mar-13   31-Mar-12
Sales
 Engineered Infrastructure Products  $ 223,670   $ 203,927
 Utility Support Structures          239,638     191,232
 Coatings                            89,245      82,847
 Irrigation                          244,707     196,266
 Other                               77,869      86,063
 Total                          875,129     760,335
Intersegment sales
 Engineered Infrastructure Products  (29,452)    (18,420)
 Utility Support Structures          (411)       (1,980)
 Coatings                            (14,330)    (12,697)
 Irrigation                          -           (425)
 Other                               (11,306)    (9,463)
 Total                          (55,499)    (42,985)
Net sales
 Engineered Infrastructure Products  194,218     185,507
 Utility Support Structures          239,227     189,252
 Coatings                            74,915      70,150
 Irrigation                          244,707     195,841
 Other                               66,563      76,600
 Total                          $ 819,630   $ 717,350
Operating Income
 Engineered Infrastructure Products  $  12,734  $   8,024
 Utility Support Structures          46,155      25,104
 Coatings                            13,420      16,512
 Irrigation                          54,559      38,408
 Other                              10,787      11,411
 Corporate                           (19,465)    (16,641)
 Total                          $ 118,190   $  82,818

Valmont has aggregated its business segments into four reportable segments as
follows:
Engineered Infrastructure Products:This segment consists of the manufacture of
engineered metal structures and components for global lighting and traffic,
wireless communication, roadway safety and access systems applications.
Utility Support Structures:This segment consists of the manufacture of
engineered steel and concrete structures for the global utility industry.
Coatings:This segment consists of global galvanizing, painting and anodizing
services.
Irrigation:This segment consists of the manufacture of agricultural irrigation
equipment and related parts and services worldwide.
In addition to these four reportable segments, Valmont also has other
businesses that individually are not more than 10% of consolidated net sales.
These businesses, which include the manufacture of forged steel grinding
media, tubular products, electrolytic manganese dioxide and industrial
fasteners, are reported in the "Other" category.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited)
                                             30-Mar-13         31-Mar-12
ASSETS
Current assets:
 Cash and cash equivalents               $  419,996      $  339,568
 Accounts receivable, net                503,933           450,280
 Inventories                             451,257           440,600
 Prepaid expenses                        33,555            27,881
 Refundable and deferred income taxes    61,745            42,263
 Total current assets               1,470,486         1,300,592
Property, plant and equipment, net           534,350           469,332
Goodwill and other assets                    612,408           613,045
                                             $ 2,617,244       $ 2,382,969
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Current installments of long-term debt  $      189   $      264
 Notes payable to banks                  13,324            12,293
 Accounts payable                        211,572           214,474
 Accrued expenses                        163,616           151,386
 Income taxes payable                    16,061            21,269
 Dividend payable                        6,020             4,778
 Total current liabilities          410,782           404,464
Long-term debt, excluding current            472,249           474,015
installments
Other long-term liabilities                  270,288           223,487
Shareholders' equity                         1,463,925         1,281,003
                                             $ 2,617,244       $ 2,382,969

SOURCE Valmont Industries, Inc.

Website: http://www.valmont.com
Contact: Jeff Laudin, Phone: 402-963-1158, Fax: 402-963-1198
 
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