- First quarter revenue increased 55%, which included $133.2 million from Delta. There was an 18% increase in quarterly revenue excluding the contribution of Delta.
- Operating profit rose 43%, including $6.2 million related to Delta. Excluding Delta, operating profit rose 23.5%.
- Irrigation Segment sales increased 39% and operating income grew 55%.
OMAHA, Neb. April 14, 2011 /PRNewswire/ — Valmont Industries, Inc. (NYSE: VMI), a leading global manufacturer of engineered products for infrastructure, mechanized irrigation equipment for agriculture, and a provider of coating services, reported sales for the first quarter of $568.0 million compared with $367.4 million for the same period of 2010. First quarter 2011 net earnings were $25.6 million, or $0.97 per diluted share, versus first quarter 2010 net earnings of $16.5 million, or $0.62 per diluted share.
First Quarter Review:
“The two main factors driving first quarter results were a 39% growth in Irrigation Segment sales and the contribution of the Delta businesses,” said Mogens C. Bay, Valmont’s Chairman and Chief Executive Officer. “Operating income rose due to an improved performance in the Irrigation and Coatings segments and the inclusion of the Delta businesses. Somewhat offsetting these improvements were weather disruptions, including at Delta’s operations in Australia, rising steel costs and pricing pressures in our structural businesses.”
Irrigation Segment (27% of 1st Quarter Sales)
Center pivot and linear move mechanized irrigation equipment and parts for agriculture in global markets.
Sales increased 39% over 2010 to $151.0 million. In global farm markets, increased investment in mechanized irrigation equipment was driven by tightening global grain supplies, which led to rising crop prices and the outlook for a meaningful increase in net farm income.
Two factors driving global demand for feed-grains are a growing world population and improved diets. Increasing food production to meet this demand will be a challenge for production agriculture. Mechanized irrigation equipment offers a solution to this challenge by supplying water efficiently at the most beneficial times for crop development. This helps to optimize and preserve valuable farm input costs, such as seed, fuel and fertilizer. The water conserving nature of the equipment further enhances the value of an investment in mechanized irrigation equipment.
Operating income grew 55% to $23.9 million and was 15.8% of segment sales. The increase in operating income was the result of improved productivity and volume leverage.