Valmont Announces First Quarter 2014 Results

                 Valmont Announces First Quarter 2014 Results

Highlights:

- Quarterly diluted earnings per-share were $2.08, or $2.20 before accounting
for the fair value adjustment of Delta EMD shares on the Johannesburg Stock
Exchange (see table on last page).

- The March 3, 2014 acquisition of DS-SM, a Danish manufacturer of engineered
steel structures, contributed $17.3 million in sales and $1.9 million of
operating income.

- Irrigation Segment operating income declined over 20% as a result of lower
North American sales. Sales and profitability improved in international
markets.

- Utility Support Structures Segment operating income declined nearly 30% as a
result of pricing pressure in North America and reduced volumes, primarily in
international markets.

PR Newswire

OMAHA, Neb., April 22, 2014

OMAHA, Neb., April 22, 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
first quarter sales of $751.7 million compared with $819.6 million for the
same period of 2013. First quarter 2014 operating income was $98.8 million
versus $118.2 million in 2013. First quarter diluted earnings per share were
$2.08 compared with $2.89 in 2013.

First Quarter Review:

"In contrast to last year's exceptional irrigation results driven by high farm
income, this year's significantly lower crop commodity prices and a projected
decline in North American farm income led to a reduction in irrigation
equipment sales," said Mogens C. Bay, Valmont's Chairman and Chief Executive
Officer.

"Lower sales in the Utility Support Structures Segment were the result of
pricing pressure, slightly lower volumes due to harsh winter weather in North
America and a significant decline in international projects.

"In the Engineered Infrastructure Products Segment, a slowdown in mining
activity in Australia, plus weather disruptions in North American markets,
were more than offset by the Valmont-SM acquisition.

"Weaker markets in Australia led to a decline in Coatings Segment sales.

"Operating income was significantly lower in the Irrigation and Utility
Support Structures Segments and was slightly higher in both the Coatings and
Engineered Infrastructure Products Segments."

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

Global sales of $214.7 million were 10% lower than 2013. In North American
markets, harsher winter weather conditions than last year and a more
competitive pricing environment contributed to the revenue decline. A
reduction in project activity led to a decline in international sales, which
last year made a significant contribution to first quarter results.

Operating income declined 29% to $32.8 million, which represents 15.3% of
segment sales. Reduced volumes plus unfavorable pricing and sales mix led to a
reduction in operating income.

Our outlook for the Utility Support Structures Segment for the year is for
increased volumes, flat revenue and reduced profitability due to a less
favorable pricing environment.

Our long-term demand outlook remains positive. Utilities are responding to the
need to improve reliability and increase the interconnectivity of regional
transmission grids with a number of large projects on the drawing board for
2015 and 2016. We expect additional demand to result from new renewable energy
sources coming on stream. Coupled with a regulatory environment supportive of
growth, these factors indicate strong, long-term market conditions.

Irrigation Segment (27% of 1st Quarter Sales)
Center pivot and linear move mechanized irrigation equipment and parts for
agriculture in global markets.

Sales of $212.7 million were 13% below last year's record levels.
International sales increased while North American sales declined.

Increased ending inventories of crops after the 2013 harvest caused downward
pressure on commodity prices. We believe in light of an expected decline in
2014 net farm income, North American farmers reduced purchases of mechanized
irrigation equipment. The first quarter selling season unfolded in a more
typical seasonal pattern, resulting in solid volumes, however below the
exceptional first quarter levels of 2013.

The increase in international sales was broad-based, reflecting improved
market demand and the Company's sales initiatives in support of growth.

Operating income was 21% lower than last year at $43.1 million. International
profitability improved, however the decline in operating income dollars was a
consequence of lower North American volumes and associated operating
deleverage. Despite the lower sales, the quality of operating income was high
at 20.3% of sales due to effective operational management.

Engineered Infrastructure Products Segment (29% of 1st Quarter Sales)
Lighting, traffic and highway safety products, wireless communication
structures and components, industrial gratings, access systems and wind energy
and oil and gas exploration applications in global markets.

First quarter sales were $228.5 million, a 2% increase from last year. The
March 3, acquisition of Valmont-SM contributed $17.3 million to quarterly
sales and more than offset negative foreign exchange translation effects and a
decline in intercompany sales to Valmont's utility division.

In North American markets, increased U.S. lighting and traffic sales offset
declines in Canada. Sales of lighting and traffic structures in Europe were
comparable to last year. A reduction in Australian mining activity reduced
demand for lighting, and engineered access systems. Sales of wireless
communication products were flat in North American markets, but higher in
China.

Operating income at $13.7 million rose 8% from 5.7% to 6.0% of segment sales.
Valmont-SM contributed $1.9 million to operating income.

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 $82.2 million were 8% below last year, with most of the decline due
to the impact of lower manufacturing and mining activity in Australia.
Operating income was slightly higher despite lower sales, primarily due to
improved operations in North America and Asia and the benefits of a capacity
reduction made in Australia in 2013.

2014 Outlook:

"We currently expect a slight increase in 2014 sales for the Company," Mr. Bay
said. Included in this outlook is the contribution of the Valmont-SM
acquisition, expectations for sales gains in other product lines within the
Engineered Infrastructure Products Segment, and that segment profitability
should continue to show improvement over last year. Our outlook for the
Utility Support Structures Segment is for increased volumes, flat revenues and
reduced profitability. We expect Coatings Segment sales and profitability to
be in line with last year. Our outlook for the Irrigation Segment is for
second quarter sales and profitability to be significantly lower and second
half irrigation sales and profitability to be flat with last year. In summary,
our current earnings outlook is for diluted earnings for the year in a range
of $10.00 to $10.50 per share."

An audio discussion of Valmont's first quarter results by Mogens C. Bay,
Chairman and Chief Executive Officer and Mark C. Jaksich, Executive Vice
President and Chief Financial Officer, will be available live by telephone by
dialing 1-877-493-2981 and entering Conference ID#:  50577343 or via the
Internet at 8:00 a.m. CDT April 23, 2014, 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#:  50577343 beginning April 23, 2014
at 10:00 a.m. CDT through 12:00 p.m. CDT on April 30, 2014.

Valmont isa 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
                                                 29-Mar-14     30-Mar-13
Net sales                                        $ 751,740     $  819,630
Cost of sales                                    544,758       584,261
 Gross profit                           206,982       235,369
Selling, general and administrative expenses     108,134       117,179
 Operating income                      98,848        118,190
Other income (expense):
 Interest expense                            (8,197)       (8,190)
 Interest income                             1,739         1,353
 Unrealized loss in investment              (3,386)       -
 Other                                       (2,426)       1,556
                                                 (12,270)      (5,281)
 Earnings before income taxes and
equity in
 earnings of nonconsolidated            86,578        112,909
subsidiaries
Income tax expense                               30,015        34,973
 Earnings before equity in earnings
of
 nonconsolidated subsidiaries          56,563        77,936
Equity in earnings of nonconsolidated            -             204
subsidiaries
 Net earnings                           56,563        78,140
Less: Earnings attributable to non-controlling  (583)         (571)
interests
 Net earnings attributable to Valmont   $  55,980    $   77,569
Industries, Inc.
Average shares outstanding (000's) - Basic       26,715        26,583
Earnings per share - Basic                       $    2.10  $     2.92
Average shares outstanding (000's) - Diluted     26,950        26,859
Earnings per share - Diluted                     $    2.08  $     2.89
Cash dividends per share                         $   0.250   $    0.225



VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Dollars in thousands)
(unaudited)
                                         First Quarter
                                         13 Weeks Ended
                                         29-Mar-14   30-Mar-13
Sales
 Engineered Infrastructure Products  $ 228,462   $  223,670
 Utility Support Structures          214,727     239,638
 Coatings                            82,171      89,245
 Irrigation                          212,733     244,707
 Other                               58,602      77,869
 Total                          796,695     875,129
Intersegment sales
 Engineered Infrastructure Products  (19,565)    (29,452)
 Utility Support Structures          (495)       (411)
 Coatings                            (14,953)    (14,330)
 Irrigation                          (9)         -
 Other                               (9,933)     (11,306)
 Total                          (44,955)    (55,499)
Net sales
 Engineered Infrastructure Products  208,897     194,218
 Utility Support Structures          214,232     239,227
 Coatings                            67,218      74,915
 Irrigation                          212,724     244,707
 Other                               48,669      66,563
 Total                          $ 751,740   $  819,630
Operating Income
 Engineered Infrastructure Products  $  13,709  $   12,734
 Utility Support Structures          32,757      46,155
 Coatings                            13,886      13,420
 Irrigation                          43,146      54,559
 Other                              8,550       10,787
 Corporate                           (13,200)    (19,465)
 Total                          $  98,848  $  118,190

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, access systems and wind energy and oil
and gas exploration 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)
                                          29-Mar-14          30-Mar-13
ASSETS
Current assets:
 Cash and cash equivalents            $   488,195      $  419,996
 Accounts receivable, net             529,693            503,933
 Inventories                          424,825            451,257
 Prepaid expenses                     57,913             33,555
 Refundable and deferred income taxes 57,935             61,745
 Total current assets            1,558,561          1,470,486
Property, plant and equipment, net        612,203            534,350
Goodwill and other assets                 715,102            612,408
                                          $ 2,885,866       $ 2,617,244
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Current installments of long-term    $      188   $      189
debt
 Notes payable to banks               14,860             13,324
 Accounts payable                     234,218            211,572
 Accrued expenses                     177,437            163,616
 Income taxes payable                 9,967              16,061
 Dividend payable                     6,721              6,020
 Total current liabilities       443,391            410,782
Long-term debt, excluding current         479,141            472,249
installments
Other long-term liabilities               343,531            270,288
Shareholders' equity                      1,619,803          1,463,925
                                          $ 2,885,866       $ 2,617,244



VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS
REGULATION G RECONCILIATION
(Dollars in thousands, except per share amounts)
(unaudited)
The schedule below relates to the non-cash after-tax loss associated with
adjusting the fair value of Delta EMD Pty. Ltd (Delta EMD) shares owned to its
quoted market price on March 29, 2014. Earnings per share for each item are
calculated separately. Therefore, due to rounding, the sum of earnings per
share amounts for each item below may not agree with the total.
                                    Quarter ended        Diluted earnings

                                    March 29, 2014       per share
Net earnings attributable to
Valmont Industries, Inc. -as       $    55,980       $    2.08
reported
Fair market value adjustment, Delta 3,386                0.13
EMD - after-tax
Net earnings attributable to        $    59,366       $    2.20
Valmont Industries, Inc. - Adjusted



SOURCE Valmont Industries, Inc.

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