Valmont Reports First Quarter 2021 Results
Valmont Industries (NYSE: VMI) announced strong financial results for Q1 2021, with net sales reaching $774.9 million, a 14.9% increase from the previous year, driven by irrigation and utility structures. Operating income rose 15.4% to $77.2 million, and diluted EPS improved by 29.1% to $2.57. The company reported a record backlog of over $1.3 billion, reflecting high market demand. Additionally, Valmont raised its quarterly dividend by 11% and generated $33.2 million in cash flow, ending the quarter with cash reserves of $391.5 million.
- Net sales increased 14.9% to $774.9 million.
- Operating income rose 15.4% to $77.2 million.
- Diluted EPS improved by 29.1% to $2.57.
- Record global backlog exceeded $1.3 billion.
- Utility Support Structures backlog increased by 27%.
- Quarterly dividend increased by 11% to $0.50.
- Generated operating cash flow of $33.2 million.
- Significant inflationary pressures affecting margins.
Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure development and irrigation equipment and services for agriculture, today reported financial results for the first quarter ended March 27, 2021.
First Quarter 2021 Highlights (all metrics compared to First Quarter 2020 unless otherwise noted)
-
Net Sales of
$774.9 million increased14.9% led primarily by significantly higher sales in Irrigation and Utility Support Structures
-
Operating Income increased
15.4% to$77.2 million , or10.0% of sales compared to$66.9 million or9.9% of sales last year, despite significant inflationary pressures
-
Diluted Earnings per Share (EPS) improved to
$2.57 compared to$1.99 , an increase of29.1%
-
Record global backlog of more than
$1.3 billion , reflecting strong market demand-
Utility Support Structures global backlog increased
27.0% during the quarter to a record$717.0 million , including receipt of two additional purchase orders totaling approximately$220 million for the large 500kV project in the Southeast U.S. -
Irrigation global backlog increased to approximately
$350.0 million during the quarter
-
Utility Support Structures global backlog increased
-
Generated operating cash flow of
$33.2 million ; cash and cash equivalents at end of first quarter were$391.5 million
-
Repurchased 50,147 shares of company stock for
$11.1 million , at an average price of$221.98 per share
-
Announced an
11.0% quarterly dividend increase, from$0.45 t o$0.50 ($1.80 t o$2.00 annualized)
-
Recognized a favorable tax rate of
21.9% primarily due to a non-recurring incremental tax benefit attributed to employee stock option exercises
-
Released the Valmont 2021 Sustainability Report, highlighting commitments to environmental, social and governance (ESG) principles along with key metrics and 2025 environmental goals:
-
19% reduction in Scope I carbon intensity of Company vehicles -
12% additional reduction in normalized global electricity usage -
10% reduction in Scope I/II carbon intensity
-
-
Commissioned a 1MW solar installation at the Company's largest manufacturing facility in Valley, Nebraska, utilizing the Company's proprietary solar tracker technology to supply approximately
6.0% of the site's electricity demand
Key Financial Metrics
First Quarter 2021 |
|
|||||||||
(000's except per share amounts) |
03/27/2021 |
|
03/28/2020 |
|
||||||
1Q 2021 |
1Q 2020 |
vs. 1Q 2020 |
||||||||
Net Sales |
$ |
774,886 |
|
|
$ |
674,200 |
|
14.9 |
% |
|
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FAQ
What were Valmont Industries' Q1 2021 net sales?
Valmont Industries reported net sales of $774.9 million for Q1 2021.
How much did Valmont's diluted EPS increase in Q1 2021?
Diluted EPS increased by 29.1% to $2.57 in Q1 2021.
What is the record backlog for Valmont Industries as of Q1 2021?
Valmont Industries reported a record backlog of over $1.3 billion as of Q1 2021.
Did Valmont Industries increase its quarterly dividend in 2021?
Yes, Valmont Industries increased its quarterly dividend by 11% to $0.50.
What were Valmont's operating income figures for Q1 2021?
Valmont's operating income rose 15.4% to $77.2 million in Q1 2021.
Valmont Industries, Inc.
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Conglomerates
Fabricated Structural Metal Products
United States of America
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