Valmont Industries, Inc. has recently released its 10-Q report, which provides a detailed look at the company's financial condition and results of operations. Valmont operates as a manufacturer of products and services for infrastructure and agriculture markets globally. The company operates through two segments, Infrastructure and Agriculture, offering a wide range of products and services such as steel and concrete structures, poles and lighting, irrigation equipment, and technology solutions for the agricultural sector.
In the thirteen weeks ended June 29, 2024, Valmont reported consolidated net sales of $1,039.7 million, a slight decrease of 0.6% compared to the same period in 2023. The gross profit for the same period was $320.3 million, representing a 2.8% decrease from the previous year. However, the operating income increased by 10.2% to $147.3 million, with a net earnings attributable to Valmont Industries, Inc. of $99.7 million, marking an 11.6% increase. Diluted earnings per share for the period were $4.91, a 16.6% increase from the previous year.
The Infrastructure segment, which includes products for transmission, distribution, and substation, lighting and transportation, coatings, telecommunications, and solar, reported net sales of $760.4 million in the second quarter of 2024, a 1.0% decrease from the same period in 2023. However, the segment's operating income increased by 15.2% to $133.5 million, driven by strategic pricing initiatives and increased sales volumes in the utility market.
In the Agriculture segment, which includes North America and international sales, net sales for the second quarter of 2024 were $279.3 million, a slight increase of 0.4% from the previous year. However, the segment's operating income decreased by 18.8% to $40.0 million, primarily due to decreased sales volumes and pricing in Brazil, partially offset by increased replacement sales in North America driven by severe weather impacts.
The company also provided details on its acquisitions and divestitures, as well as the macroeconomic impacts on its financial results and liquidity. Valmont continues to monitor several macroeconomic trends and geopolitical uncertainties, including inflationary cost pressures, supply chain disruptions, changes in foreign currency exchange rates, and labor shortages, which have impacted or may impact its business.
Following these announcements, the company's shares moved 1.2%, and are now trading at a price of $304.1. For more information, read the company's full 10-Q submission here.
