Actionable news
0
All posts from Actionable news
Actionable news in VMI: VALMONT INDUSTRIES Inc,

Valmont Announces Third Quarter 2015 Results

The following excerpt is from the company's SEC filing.

Omaha, NE - Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure and mechanized irrigation equipment for agriculture, today reported third quarter results.

Highlights:

GAAP diluted EPS were $0.52 compared with $0.92 in 2014. Adjusted diluted EPS, before restructuring and impairment charges, were $1.39, as compared with $1.92 in 2014 before refinancing charges.

Revenues of $633 million were down 17% from 2014 with foreign exchange representing about half of the decline.

Operating income was $37 million ($61.0 million before charges); foreign exchange impact was $(6.0) million year-over-year. Operating income was 5.9% of net sales. Excluding restructuring and impairment charges, operating income was 9.6% of net sales, compared with 11.5% in 2014.

The previously announced restructuring initiative is proceeding as planned with overhead reductions, plant consolidations and other cost actions on track. Completion of most activities is expected by year-end; estimated annualized benefit has increased to $30 million from $19 million.

$8.8 million of pre-tax restructuring expense was recognized during the quarter. In addition, the annual impairment testing of trade names and goodwill resulted in pre-tax impairment charges of $15.2 million.

Repurchased 247,000 of Company shares during quarter for $27.2 million.

Completed acquisition of American Galvanizing on September 30.

One Valmont Plaza

Omaha, Nebraska 68154 U.S.A.

www.valmont.com

Summarized Financial Info.

Third Quarter

Year-to-Date

13 Weeks Ended

39 Weeks Ended

($ in thousands, except per share data)

26-Sep-15

27-Sep-14

Net Sales

$ 632,575

$ 765,668

$1,985,096

$2,360,007

Operating Income - GAAP

37,012

87,803

148,695

291,427

Operating Income - Adjusted *

61,012

187,738

Net Earnings - GAAP

12,066

23,559

70,678

143,515

Net Earnings - Adjusted *

32,176

49,088

100,678

172,545

Diluted EPS - GAAP Earnings

$ 0.52

$ 0.92

$ 3.00

$ 5.43

Diluted EPS - Adjusted Earnings *

$ 1.39

$ 1.92

$ 4.28

$ 6.53

Average Shares Outstanding - Diluted

23,170

25,513

23,534

26,439

* Please see Reg. G reconciliation table on last page.

“The end-market challenges of weak agricultural commodity prices and reduced mining and energy driven demand, along with unfavorable currency translation, persisted during the quarter,” said Mogens C. Bay, Valmont’s Chairman and Chief Executive Officer. “Our goal in this environment remains to drive earnings improvement next year despite continued difficult market conditions. During the quarter, we continued our restructuring efforts and are on track to complete most initiatives by year-end. We now expect annualized cost savings from restructuring and cost reduction actions to approximate $30 million per year, compared to our prior expectations of $19 million in annualized savings.”

Restructuring Plan Update

Third quarter progress on the Company’s 2015 restructuring efforts entailed numerous actions to streamline management structure, consolidate production to lower cost facilities and reduce overhead. The major actions that took place during the quarter were as follows: In the Engineered Infrastructure Products Segment, overhead reductions occurred in all geographic regions, plant consolidations took place in access systems in Australia and a small facility in China was closed. In the Coatings segment, the idling of one Australian facility was completed.

The total restructuring costs incurred during the third quarter for the above actions, plus other restructuring activities, were $8.8 million pre-tax. The restructuring charges comprised of $5.5 million of cash expenses and $3.3 million of non-cash asset impairments. As part of the Company’s annual impairment testing of intangible assets, during the third quarter, a pre-tax, non-cash impairment charge of $15.2 million was recorded on certain intangible assets, including a $10.2 million impairment of certain intangible assets in the Coatings Segment.

Third Quarter Segment Review

(41% of 3rd Quarter Sales)

Engineered structures and components for global lighting and traffic, wireless communication, roadway safety, offshore structures and access systems applications.

Third quarter sales were $259.9 million, compared to $294.9 million in 2014, of which currency translation represented $30.0 million of the decline.

In North America, sales of lighting and traffic products increased due to the acquisition of Shakespeare, a composite structures manufacturer, in October, 2014. Wireless communication structure sales were lower due a major carrier’s absence from the market.

In Europe, lighting and traffic structure sales declined slightly in local currency reflecting continued restraint in government investment in infrastructure due to general economic conditions in the region. Offshore structure sales were lower as investments in the energy sector were curtailed. A customer’s delayed introduction of larger next-generation wind turbines also pushed out offshore structure deliveries into next year.

In the Asia-Pacific region, an increase in wireless communication structure sales benefitting from China’s investment in its 4G wireless technology rollout was more than offset by engineered access system sales declines due to lower oil and gas investment in the region and a reduction of new investment in the Australian mining sector.

Operating income was $14.2 million, or 5.4% of segment sales, (9.1% before charges) compared with $33.2 million or 11.3% of segment sales in 2014, (included approximately $4.0 million reversal of a contingent purchase price provision related to the 2013 acquisition of Locker). Volume deleverage...


More