Valmont Industries Inc. (VMI, Financial) filed Quarterly Report for the period ended 2009-06-27.
VALMONT INDUSTRIES INC. is engaged in industrial products and irrigation products businesses. The Industrial Products segment involves the manufacture and distribution of engineered metal structures and other fabricated products for industrial and commercial applications. The Irrigation Products segment involves the manufacture and distribution of agricultural irrigation equipment and related products. Valmont Industries Inc. has a market cap of $1.86 billion; its shares were traded at around $70.98 with a P/E ratio of 12.9 and P/S ratio of 1. The dividend yield of Valmont Industries Inc. stocks is 0.8%. Valmont Industries Inc. had an annual average earning growth of 9.1% over the past 10 years. GuruFocus rated Valmont Industries Inc. the business predictability rank of 4-star.
The decrease in ESS segment sales in the quarter and year-to-date periods ended June 27, 2009, as compared with the same periods in 2008, was mainly due to weaker sales demand in worldwide markets and foreign currency translation effects (approximately $6.1 million and $11.4 million, respectively). These decreases were offset somewhat by the impact of acquisitions (approximately $19.2 million and $36.1 million, respectively) and slightly higher selling prices, as compared with 2008.
The decrease in the operating income of the ESS segment in the second quarter and year-to-date periods ended June 27, 2009, as compared with the same periods in 2008 was mainly due to the decrease in sales volumes in worldwide markets, offset to a degree by the impact of acquisitions (approximately $2.7 million and $4.2 million, respectively) and lower raw material costs. For the segment, SG&A expense in the second quarter year-to-date of 2009 was comparable with the same period in 2008, as the impact from acquisitions (approximately $2.4 million and $4.5 million, respectively) was offset by currency translation impacts (approximately $1.4 million and $2.4 million, respectively) and lower commissions due to lower 2009 sales volumes (approximately $1.4 million and $2.5 million, respectively). In response to market conditions, we took actions in 2009 to reduce costs, including decreases in employment levels and reducing production capacity in selected areas. Due to the effect of severance costs and other associated costs, the impact of these actions on operating income in the second quarter and year-to-date periods ended June 27, 2009 was not significant.
The improved operating income for this segment in the second quarter and first half of 2009, as compared with the same periods in 2008, related to the increased sales levels, improved operating leverage associated with higher sales volumes and a more favorable sales mix than 2008. The increases in SG&A spending in the second quarter and first half of 2009, as compared with the same periods in 2008, were principally due to higher salary and employee benefit costs ($0.5 million and $1.3 million, respectively) to support the higher sales volumes, increased sales commissions associated with the increased sales in 2009 (approximately $0.6 million and $1.0 million) and higher employee incentives (approximately $0.3 million and $0.8 million, respectively) associated with improved operating income of this segment.
The decrease in operating income for the thirteen and twenty-six week periods ended June 27, 2009, as compared with the same periods in 2008, was due to the effect of lower sales unit volumes and the associated operating deleverage realized as a result of lower sales and production levels. The decrease in SG&A spending in the second quarter and year-to-date 2009, as compared with 2008, was due to lower incentive expense accruals related to decreased operating income this year (approximately $1.9 million and $2.9 million, respectively) and currency translation effects (approximately $0.4 million and $0.9 million, respectively), offset somewhat by higher salary and employee benefits costs (approximately $0.8 million and $1.4 million, respectively).
Working Capital and Operating Cash FlowsNet working capital was $477.7 million at June 27, 2009, as compared with $475.2 million at December 27, 2008. The ratio of current assets to current liabilities was 2.84:1 at June 27, 2009, as compared with 2.69:1 at December 27, 2008. Operating cash flow was $135.6 million for the twenty-six week period ended June 27, 2009, as compared with $49.5 million for the same period in 2008. The improved operating cash flow in 2009 was the result of higher net earnings and a lower increase in working capital in 2009, as compared with 2008. Accounts receivable turnover in 2009 was slightly lower than the same period in 2008, mainly due to a shift in our sales mix from irrigation to other product lines. Inventory levels decreased significantly in the first
Read the The complete ReportVMI is in the portfolios of John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC.
VALMONT INDUSTRIES INC. is engaged in industrial products and irrigation products businesses. The Industrial Products segment involves the manufacture and distribution of engineered metal structures and other fabricated products for industrial and commercial applications. The Irrigation Products segment involves the manufacture and distribution of agricultural irrigation equipment and related products. Valmont Industries Inc. has a market cap of $1.86 billion; its shares were traded at around $70.98 with a P/E ratio of 12.9 and P/S ratio of 1. The dividend yield of Valmont Industries Inc. stocks is 0.8%. Valmont Industries Inc. had an annual average earning growth of 9.1% over the past 10 years. GuruFocus rated Valmont Industries Inc. the business predictability rank of 4-star.
Highlight of Business Operations:
increased salary and benefit costs (approximately $3.1 million and $6.2 million, respectively); the effect of acquisitions completed after the second quarter of 2008 (approximately $3.0 million and $5.4 million, respectively), and; increased deferred compensation expense related to the improved investment performance in the marketable securities underlying the deferred compensation plan as compared with of 2008 (approximately $1.0 million and $1.9 million, respectively). We recorded the investment gains and losses in these securities as "Miscellaneous" in our condensed consolidated statements of operations for the thirteen weeks and twenty-six weeks ended June 27, 2009 and June 28, 2008, respectively. These increases were somewhat offset by:The decrease in ESS segment sales in the quarter and year-to-date periods ended June 27, 2009, as compared with the same periods in 2008, was mainly due to weaker sales demand in worldwide markets and foreign currency translation effects (approximately $6.1 million and $11.4 million, respectively). These decreases were offset somewhat by the impact of acquisitions (approximately $19.2 million and $36.1 million, respectively) and slightly higher selling prices, as compared with 2008.
The decrease in the operating income of the ESS segment in the second quarter and year-to-date periods ended June 27, 2009, as compared with the same periods in 2008 was mainly due to the decrease in sales volumes in worldwide markets, offset to a degree by the impact of acquisitions (approximately $2.7 million and $4.2 million, respectively) and lower raw material costs. For the segment, SG&A expense in the second quarter year-to-date of 2009 was comparable with the same period in 2008, as the impact from acquisitions (approximately $2.4 million and $4.5 million, respectively) was offset by currency translation impacts (approximately $1.4 million and $2.4 million, respectively) and lower commissions due to lower 2009 sales volumes (approximately $1.4 million and $2.5 million, respectively). In response to market conditions, we took actions in 2009 to reduce costs, including decreases in employment levels and reducing production capacity in selected areas. Due to the effect of severance costs and other associated costs, the impact of these actions on operating income in the second quarter and year-to-date periods ended June 27, 2009 was not significant.
The improved operating income for this segment in the second quarter and first half of 2009, as compared with the same periods in 2008, related to the increased sales levels, improved operating leverage associated with higher sales volumes and a more favorable sales mix than 2008. The increases in SG&A spending in the second quarter and first half of 2009, as compared with the same periods in 2008, were principally due to higher salary and employee benefit costs ($0.5 million and $1.3 million, respectively) to support the higher sales volumes, increased sales commissions associated with the increased sales in 2009 (approximately $0.6 million and $1.0 million) and higher employee incentives (approximately $0.3 million and $0.8 million, respectively) associated with improved operating income of this segment.
The decrease in operating income for the thirteen and twenty-six week periods ended June 27, 2009, as compared with the same periods in 2008, was due to the effect of lower sales unit volumes and the associated operating deleverage realized as a result of lower sales and production levels. The decrease in SG&A spending in the second quarter and year-to-date 2009, as compared with 2008, was due to lower incentive expense accruals related to decreased operating income this year (approximately $1.9 million and $2.9 million, respectively) and currency translation effects (approximately $0.4 million and $0.9 million, respectively), offset somewhat by higher salary and employee benefits costs (approximately $0.8 million and $1.4 million, respectively).
Working Capital and Operating Cash FlowsNet working capital was $477.7 million at June 27, 2009, as compared with $475.2 million at December 27, 2008. The ratio of current assets to current liabilities was 2.84:1 at June 27, 2009, as compared with 2.69:1 at December 27, 2008. Operating cash flow was $135.6 million for the twenty-six week period ended June 27, 2009, as compared with $49.5 million for the same period in 2008. The improved operating cash flow in 2009 was the result of higher net earnings and a lower increase in working capital in 2009, as compared with 2008. Accounts receivable turnover in 2009 was slightly lower than the same period in 2008, mainly due to a shift in our sales mix from irrigation to other product lines. Inventory levels decreased significantly in the first
Read the The complete ReportVMI is in the portfolios of John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC.
