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VALMONT'S FIRST QUARTER EARNINGS FROM OPERATIONS DOUBLE; ADOPTS SFAS 109

 VALLEY, Neb., April 16 /PRNewswire/ -- Valmont Industries Inc. (NASDAQ: VALM) reported earnings before the cumulative effect of accounting change of $3.5 million, or 30 cents per share, for the first quarter of 1993. This is nearly double its net earnings of $1.8 million, or 15 cents per share, for the comparable quarter in 1992. Valmont's sales for this year's first quarter were $106.9 million vs. $110.3 million for the same quarter of 1992.
 Valmont also reported that it adopted Financial Accounting Standards Board Statement Number 109, "Accounting for Income Taxes" (SFAS 109) in the first quarter. The cumulative effect of this accounting change on years prior to 1993 has been reflected in the first quarter and resulted in a non-cash charge of $4.9 million, or 42 cents per share. Income taxes for prior periods have not been restated for this change. As a result of the adoption of SFAS 109 as required by the Financial Accounting Standards Board, Valmont reported a net loss of $1.4 million, or 12 cents per share, for the first quarter of 1993.
 Operating profits in the Industrial Products segment rose in spite of somewhat lower sales. Sales of energy-efficient electronic ballasts rose substantially vs. last year from demand created by utility rebate programs. Production capacity for these products was doubled during the quarter and plans are in place to expand further. Demand for pole structures was strong during the quarter, however, sales were flat compared to last year as winter weather conditions delayed delivery of products to many construction sites. Steel reinforcing bar sales continued soft as Valmont executes its strategy of exiting from this business. Overall, operating profits in the Industrial Products segment strengthened vs. 1992 from lower cost structures and productivity improvements in the ballast and pole structures business.
 The Irrigation Products segment operating profits in the first quarter were about equal to the same period of 1992 as productivity improvements offset the impact of lower sales volumes. Domestic irrigation sales increased slightly even though unfavorable weather conditions caused shipping delays into many of the selling areas. International sales were lower from reduced exports of equipment into the Middle East.
 InaCom Corp. (NASDAQ: INAC), a major marketer of computer systems and services and 38 percent-owned by Valmont, reported earnings from operations of $2.8 million for the first quarter, compared to earnings of $1.7 million for the first quarter of 1992. InaCom attributed its revenue and earnings gains to strong customer demand for major manufacturers' products at both company-owned and independently owned business centers, as well as the positive impact of the addition of Sears Business Centers to the InaCom channel. Valmont's share of InaCom's earnings were $0.7 million in this year's first quarter vs. $0.6 million in the same quarter of 1992.
 Commenting on the first quarter results, Valmont's president and chief executive officer, William F. Welsh II, said, "Our increase in operating earnings is the direct result of reductions in cost structures and productivity improvements initiated in all of our businesses over the last 18 months. Adverse weather conditions and our strategy to exit the steel reinforcing bar business contributed to lower sales volumes for the quarter. Order backlogs rose during the quarter due to exceptionally strong order flow and the weather- related shipping delays.
 "Our balance sheet is in excellent condition, with the current ratio at 1.7-to-1.0 and long-term debt to total capitalization at 34.9 percent, within our objective range of 32 percent to 40 percent," Welsh continued. "As we look forward to the remainder of 1993, we are encouraged by improvements in market conditions, sales order rates and backlog. We anticipate that these factors, coupled with our emphasis on lowering cost structures and improving productivity will positively impact profitability for the rest of the year."
 Valmont Industries manufactures steel and aluminum poles for lighting, utility and communication markets, steel tubing for speciality industrial applications and ballasts and controls for the lighting industry; is the leading producer of mechanized irrigation systems for worldwide agricultural markets; and has an investment in InaCom, a major distributor of microcomputer products and services.
 VALMONT INDUSTRIES INC. AND SUBSIDIARIES
 Condensed Statements of Operations
 (Dollars in thousands, except per share amounts)
 First Quarter - 13 Weeks Ended
 March 27, 1993 March 28, 1992
 Net sales $106,909 $110,338
 Cost of sales 81,567 87,243
 Gross profit 25,342 23,095
 Selling, general and administrative
 expenses 19,624 19,678
 Operating income 5,718 3,417
 Other income (deductions) (1,458) (1,696)
 Earnings before income taxes, equity
 in net earnings of non-consolidated
 affiliates and cumulative effect of
 accounting change 4,260 1,721
 Income taxes 1,459 532
 Earnings before equity in net earnings
 of non-consolidated affiliates and
 cumulative effect of accounting
 change 2,801 1,189
 Equity in net earnings of
 non-consolidated affiliates 687 564
 Earnings before cumulative effect
 of accounting change 3,488 1,753
 Cumulative effect of change in
 accounting for income taxes (4,910) ---
 Net earnings (loss) ($1,422) 1,753
 Earnings per share before
 cumulative effect of accounting
 change $.30 .15
 Cumulative effect per share of change
 in accounting for income taxes (.42) ---
 Net earnings (loss) per share ($.12) .15
 Cash dividends per share $.065 $.065
 Weighted average number of shares
 of common stock (000 omitted) 11,751 11,516
 VALMONT INDUSTRIES INC. AND SUBSIDIARIES
 Condensed Balance Sheets
 (Dollars in thousands)
 March 27, March 28,
 1993 1992
 Assets
 Current assets $161,523 157,249
 Other assets, net 45,329 39,631
 Property, plant and equipment, net 78,099 79,843
 Total $284,951 276,723
 Liabilities and Shareholders' Equity
 Current liabilities $94,041 $90,999
 Long-term debt, excluding
 current installments 59,627 69,205
 Other long-term liabilities 21,747 14,917
 Shareholders' equity 109,536 101,602
 Total $284,951 276,723
 1993 figures subject to final audit.
 -0- 4/16/93
 /CONTACT: Brian Stanley of Valmont Industries, 402-359-2201/
 (VALM INAC)


CO: Valmont Industries Inc. ST: Nebraska IN: AGR SU: ERN

JB-KJ -- DV002 -- 6596 04/16/93 08:16 EDT
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Date:Apr 16, 1993
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