Valmont Announces Fourth Quarter and Fiscal Year 2013 Results

        Valmont Announces Fourth Quarter and Fiscal Year 2013 Results


- Fourth quarter diluted earnings per share were $2.04 or $2.66 before the
previously announced non-cash $0.62 negative impacts of an asset impairment
and deconsolidation of Delta EMD. This compares to $2.43 diluted earnings per
share reported in the fourth quarter of 2012. (See table on last page).

- Utility Support Structures Segment sales reached record fourth quarter

- Irrigation Segment fourth quarter sales remained strong, declining only 6%
behind last year's exceptional record fourth quarter levels.

- Sales and operational improvements in Engineered Infrastructure Products
resulted in segment operating income as a percent of sales in the fourth
quarter increasing to 10.0% from 5.3% in 2012.

PR Newswire

OMAHA, Neb., Feb. 20, 2014

OMAHA, Neb., Feb. 20, 2014 /PRNewswire/ -- Valmont Industries, Inc. (NYSE:
VMI), a leading global provider of engineered products and services for
infrastructure and mechanized irrigation equipment for agriculture, reported
fourth quarter sales of $827.9 million compared with $815.0 million for the
same period of 2012. Fourth quarter 2013 operating income was $100.7 million
versus $111.7 million in 2012 and included $12.2 million of a non-cash fixed
asset impairment charge at Delta EMD. Fourth quarter diluted earnings per
share were $2.04 compared with $2.43 in 2012. Included in fourth quarter
earnings per share is an additional non-cash after-tax loss in the amount of
$12.0 million or $0.45 cents per share resulting from the deconsolidation of
Delta EMD and Valmont's proportionate share of the after-tax Delta EMD fixed
asset impairment in the amount of $4.6 million, or $0.17 per diluted share.

For fiscal 2013, sales were $3.3 billion versus $3.0 billion in 2012.
Operating income for fiscal 2013 was $473.1 million versus $382.3 million in
2012. Valmont's fiscal year net earnings were $278.5 million, or $10.35 per
diluted share ($10.97 before consideration of the Delta EMD impairment and
deconsolidation), compared with 2012 fiscal year earnings of $234.1 million,
or $8.75 per diluted share.

Fourth Quarter Review:
"Led by an 8% revenue increase in the Engineered Infrastructure Products
Segment, sales set another fourth quarter record. Fourth quarter revenue
records were also achieved in the Utility Support Structures and Coatings
Segments," said Mogens C. Bay, Valmont's Chairman and Chief Executive Officer.
"As expected, Irrigation Segment sales were lower.

"Operating income as a percent of sales was similar to last year's levels
before the fixed asset impairment at Delta EMD."

Fourth Quarter Segment Review:
Utility Support Structures Segment (32% of 4th Quarter Sales)
Steel and concrete structures for the global electric utility industry.

Sales of $264.7 million were 5% higher than 2012. North American sales
increased and international sales declined.

The need to improve reliability by adding physical capacity and increase the
interconnectivity of regional transmission grids in North America continues to
drive significant utility investments in transmission infrastructure. Further
demand comes from renewable energy sources requiring connectivity to the grid.
During 2013, the Company added manufacturing capacity to support market growth
and satisfy customer requirements for shorter lead times. These newly
commissioned facilities can make traditional monopole utility structures and a
new Valmont designed 'jumbo' sized pole to address the market's growing demand
for even higher voltage transmission lines up to 745 kilovolts.

Operating income declined 5% to $45 million, which represents 17.0% of segment
sales. Operating income improved in North America on improved sales pricing,
mix and leverage of fixed costs, but this was more than offset by volume
deleverage in international markets and an inventory write-down associated
with the loss of a project in North Africa. Customers are placing orders with
shorter lead-times as additional industry capacity brought supply and demand
more into balance. This has resulted in a decline of approximately $100
million in our year-end backlog.

Irrigation Segment (23% of 4th Quarter Sales)
Center pivot and linear move mechanized irrigation equipment and parts for
agriculture in global markets.

Sales of $192.2 million declined 6% from last year's drought-driven record
fourth quarter. In North America, the fourth quarter selling season reflected
a more typical harvest season than last year. Last year's harvest was early,
on account of dry conditions, which resulted in a more prolonged than usual
fall selling season. The shorter selling season plus lower crop commodity
prices contributed to the lower orders and sales, as evidenced by a decline in
year-end backlogs. Growth continued in international markets.

While short-term swings in the farm economy can influence annual demand,
long-term demand will be driven by the growing food needs of a rising global
population and improving diets. To meet these needs, agriculture must increase
its productivity. Competing demands on limited fresh water resources will
drive agriculture to conserve water. Valmont's efficient irrigation products
provide a lasting solution to these pressing problems, which we believe
supports a favorable long-term outlook for this business.

Operating income was 22% lower than last year at $31.6 million or 16.5% of
segment sales. The decline in operating income was a consequence of deleverage
on lower volumes and planned business development efforts that increased SG&A

Engineered Infrastructure Products Segment (32% of 4th Quarter Sales)
Lighting, traffic and highway safety products, wireless communication
structures and components, and industrial gratings and access systems

Fourth quarter sales were $267.2 million, an 8% increase over 2012. The
increase was due to the contribution of Locker, an Australian engineered
access systems company acquired in February of 2013, and higher sales of
lighting and traffic products in North America.

Sales of lighting and traffic structures in Europe were slightly lower
reflecting continued economic weakness and fiscal austerity measures
throughout the region.

The additional sales from Locker more than offset the impact of a weaker
Australian currency and economy on engineered access system sales.

Sales of wireless communication products were flat in North American markets
and slightly lower in China.

Operating income doubled to $26.6 million, or 10.0% of segment sales. The
improvement was the result of increased volumes in North America, the
contribution of Locker, the benefit of cost reductions implemented in Europe
and improved productivity in North America, Asia and Europe.

Coatings Segment (10% of 4th Quarter Sales)
Hot-dip galvanizing, and other coatings to protect against corrosion of steel
and aluminum in global markets.

Sales of $85.6 million were 3% higher than last year. The revenue contribution
of Pure Metal, a Canadian galvanizing acquisition completed in late 2012, more
than offset the impact of Australia's weaker currency and economy on sales.

The performance of the Pure Metal acquisition has met our expectations. We
have benefited from the increased geographic diversification and exposure to
the strong Canadian economy.

Operating income rose 6% to $18.1 million or 21.2% of segment sales primarily
due to the contribution from the Pure Metal acquisition.

2013 Fiscal Year Review:
"Record sales in all reportable segments drove significantly improved
financial performance in 2013," said Mr. Bay. "Looking at results by segment,
the Utility Support Structures Segment benefited from significant utility
investments in the North American transmission grid. In the Irrigation
Segment, historically high farm incomes drove annual sales gains in 2013. In
the Engineered Infrastructure Products Segment, the first quarter acquisition
of Locker in Australia plus improved sales in North America drove segment
sales above $1 billion for the first time. Coatings Segment sales increased
primarily due to a Canadian acquisition in late 2012.

"For the year, operating income as a percent of sales improved from 12.6% to
14.3%. The positive impact of acquisitions combined with operational leverage
in all segments led to the increased operating income."

2014 Outlook:
"We are facing a challenging first quarter comparison in light of last year's
47% first quarter earnings improvement," Mr. Bay said. "Last year we had
exceptional irrigation results mainly driven by drought. This year's first
quarter irrigation results will decline in comparison. In the utility
business, we anticipate flat first quarter revenue due to less project
activity in international markets. Operationally, severe weather has disrupted
production and shipping in some of our facilities. This, plus some pricing
pressure, will likely result in reduced first quarter utility profitability.

"Our present outlook is that first quarter 2014 earnings for the Company could
be down around 25%. At this early stage in the year, we expect full year
earnings to be slightly below 2013's $10.97 adjusted diluted earnings per

An audio discussion of Valmont's fourth quarter results by Mogens C. Bay,
Chairman and Chief Executive Officer and Terry J. McClain, Executive Vice
President and Chief Financial Officer, will be available live by telephone by
dialing 1-877-493-2981 and entering Conference ID#:  50490339 or via the
Internet at 8:00 a.m. CST February 21, 2014, by pointing browsers to: 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#:  50490339 beginning February 21,
2014 at 10:00 a.m. CST through 12:00 p.m. CST on February 28, 2014.

Valmont 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.

(Dollars in thousands, except per share amounts)
                        Fourth Quarter             Year-to-Date
                        13 Weeks Ended             52 Weeks Ended
                        28-Dec-13     29-Dec-12    28-Dec-13      29-Dec-12
Net sales               $  827,890  $          $ 3,304,211   $ 3,029,541
Cost of sales           605,066       590,692      2,358,983      2,227,085
 Gross profit  222,824       224,345      945,228        802,456
Selling, general and
administrative          122,111       112,601      472,159        420,160
 Operating     100,713       111,744      473,069        382,296
Other income (expense)
 Interest expense   (8,138)       (7,968)      (32,502)       (31,625)
 Interest income    1,712         2,191        6,477          8,272
 Other              1,278         (560)        2,373          347
                        (5,148)       (6,337)      (23,652)       (23,006)
before income taxes
and equity in

 earnings of   95,565        105,407      449,417        359,290
Income tax expense      31,728        39,497       157,781        126,502
before equity in
earnings of

               63,837        65,910       291,636        232,788
Equity in earnings of
nonconsolidated         287           817          835            6,128
Loss from
deconsolidation of      (12,011)      -            (12,011)       -
 Net earnings  52,113        66,727       280,460        238,916
Less: Earnings
attributable to         2,755         (1,691)      (1,971)        (4,844)
 Net earnings
attributable to         $           $         $   278,489  $  
Valmont Industries,     54,868       65,036                      234,072
Average shares
outstanding (000's) -   26,667        26,502       26,641         26,471
Earnings per share -    $         $       $          $     
Basic                   2.06         2.45         10.45          8.84
Average shares
outstanding (000's) -   26,909        26,806       26,899         26,764
Earnings per share -    $         $       $          $     
Diluted                 2.04         2.43         10.35          8.75
Cash dividends per      $          $        $          $    
share                   0.250        0.225        0.975          0.855

(Dollars in thousands)
                         Fourth Quarter           Year-to-Date
                         13 Weeks Ended           52 Weeks Ended
                         28-Dec-13     29-Dec-12  28-Dec-13      29-Dec-12
Net sales
 Engineered          $  267,220  $        $ 1,001,809   $   931,533
Infrastructure Products                247,106
 Utility Support     264,737       252,556    962,038        873,520
 Coatings            85,583        83,155     357,635        334,552
 Infrastructure   617,540       582,817    2,321,482      2,139,605
 Irrigation          192,177       203,427    882,179        750,641
 Other               70,211        82,980     303,595        328,737
 Less: Intersegment  (52,038)      (54,187)   (203,045)      (189,442)
 Total          $  827,890  $        $ 3,304,211   $ 3,029,541
Operating Income
 Engineered          $           $       $           $   
Infrastructure Products  26,621       13,106     87,647         54,013
 Utility Support     44,973        47,124     174,740        129,025
 Coatings            18,112        17,070     74,917         71,641
 Infrastructure   89,706        77,300     337,304        254,679
 Irrigation          31,620        40,450     181,498        143,605
 Other              (2,806)       13,162     30,984         46,575
 Corporate           (17,807)      (19,168)   (76,717)       (62,563)
 Total          $  100,713  $        $   473,069  $   382,296

The backlog of orders for the principal products manufactured and marketed was
$666.6 million at the end of the 2013 fiscal year and $902.5 million at the
end of the 2012 fiscal year. We anticipate that most of the backlog of orders
will be filled during fiscal year 2014. At year-end, the segments with backlog
were as follows (dollar amounts in millions):

                                     28-Dec-13          29-Dec-12
Engineered Infrastructure Products $      201   $      212
Utility Support Structures         334                434
Irrigation                         104                231
Coatings                           1                  1
Other                              26                 25
                                     $      666   $      903

Valmont has four reportable segments based on its reporting structure.
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
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 offorged steel grinding
media, tubular products, electrolytic manganese dioxide and industrial
fasteners, are reported in the "Other" category.

(Dollars in thousands)
                                           28-Dec-13          29-Dec-12
Current assets:
 Cash and cash equivalents             $   613,706      $   414,129
 Accounts receivable, net              515,440            515,902
 Inventories                           380,000            412,384
 Prepaid expenses                      22,997             25,144
 Refundable and deferred income taxes  65,697             58,381
 Total current assets             1,597,840          1,425,940
Property, plant and equipment, net         534,210            512,612
Goodwill and other assets                  644,444            629,999
                                           $ 2,776,494       $ 2,568,551
Current liabilities:
 Current installments of long-term     $      202   $      224
 Notes payable to banks                19,024             13,375
 Accounts payable                      216,121            212,424
 Accrued expenses                      194,527            180,408
 Dividend payable                      6,706              6,002
 Total current liabilities        436,580            412,433
Long-term debt, excluding current          470,907            472,593
Other long-term liabilities                324,161            276,515
Shareholders' equity                       1,544,846          1,407,010
                                           $ 2,776,494       $ 2,568,551

(Dollars in thousands)
Non-recurring items listed below relate to: a non-cash after-tax loss
associated with the deconsolidation of Delta EMD Pty. Ltd (EMD) and Valmont's
proportionate share of an after-tax loss related to a fixed asset impairment
recorded by EMD in the fourth quarter of 2013.
                       Quarter    Diluted        Year ended     Diluted
                       ended      earnings       December 28,   earnings
                       December   per share      2013           per share
                       28, 2013
Net earnings
attributable to        $       $          $            $    
Valmont Industries,    54,868     2.04          278,489        10.35
Inc. - as
Fixed asset impairment 4,569      0.17           4,569          0.17
charge - after tax
Deconsolidation of     12,011     0.45           12,011         0.45
Delta EMD - after tax
Net earnings
attributable to        $       $          $            $    
Valmont Industries,    71,448     2.66          295,069        10.97
Inc. - Adjusted

SOURCE Valmont Industries, Inc.

Contact: Jeff Laudin, Phone, 402-963-1158, Fax, 402-963-1198
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