Valmont Industries, a company that provides engineered products and services for infrastructure development and irrigation equipment and services for agriculture, reported financial results for the third quarter that ended on Sept. 25. Its irrigation business segment led the way in higher sales, although the company reported growth in all of its business segments. The company sells monopoles as support structures for wireless communications antennas and, as Valmont Site Pro 1, sells wireless site components and safety products.
The third-quarter net sales of $868.8 million reflect an increase of 18.4 percent, compared with the third quarter of 2020. Operating income improved to $76.2 million, or 8.8 percent of sales, despite ongoing inflationary pressures and supply chain disruptions, the company said.
Valmont said it has a record global backlog of more than $1.5 billion, an increase of 35 percent since the end of fiscal 2020, reflecting improved pricing and continued strong market demand.
“We have continued building positive momentum in 2021 with another quarter of strong sales and operating performance,” said Stephen G. Kaniewski, Valmont’s president and CEO. “Our results reflect the benefits of focused pricing actions and our growth strategies, combined with the strength of our businesses and execution by our global teams. Through these actions, we achieved record third-quarter sales, grew adjusted operating income 20 percent year-over-year and delivered adjusted diluted earnings per share growth of 30 percent, despite ongoing inflationary pressures of higher raw materials, freight and labor.”
Kaniewski said that sales growth led by higher sales in the irrigation market segment as a result of strong global agricultural market fundamentals and lead to positive farmer sentiment, and because deliveries of a large Egypt project continued.
“Robust market demand for improving grid resiliency and renewable energy usage, and increased pricing are driving continued sales growth in utility support structures,” Kaniewski said. “Higher sales in engineered support structures were led by a focus on pricing and growth of wireless communication products and components, and solid execution globally helped drive this segment’s third-quarter operating profit margins above 12 percent for the first time. Sales growth in coatings was led by pricing and improved industrial production levels compared to last year.”