December 02, 2008

Valmont Industries posts higher profit in Q2 - Update

Valmont Industries Inc which produces fabricated metal products said that its second quarter profit increased from last year, boosted by stronger global demand for irrigation equipment and higher sales in structural segments.

Valmont said that its net earnings for the second quarter were USD 37.3 million up from USD 26.9 million. Its sales increased to USD 497.1 million from USD 402.3 million in the same quarter last year.

Valmont said that engineered support structures segment sales rose 19% to USD 191.0 million over last year. Sales from utility support structures segment grew by 13% to USD 101.3 million, led by the acquisition of PennSummit and sales price increases to recover higher steel costs.

Coatings segment sales improved 5% to $37.2 million from the year-ago quarter, as a result of stronger demand from agricultural and petrochemical markets.

Irrigation segment reported sales of $159.7 million, up 48% over last year, driven by increased global demand for grains for food and biofuel use.

Mr Mogens Bay chairman & CEO of Valmont said that "Substantially stronger global demand for irrigation equipment led to record second quarter sales. Sales in our structural segments also increased due to the impact of acquisitions made earlier in the year and effective pricing actions to recover higher input costs."