VALMONT ANNOUNCES FIRST QUARTER RESULTS
VALMONT ANNOUNCES FIRST QUARTER RESULTS VALLEY, Neb., April 16 /PRNewswire/ -- Valmont Industries Inc.
(NASDAQ: VALM) today reported that its net earnings for the first quarter were $1.75 million, or 15 cents per share, about equal to 1991's first quarter earnings of $1.72 million, or 15 cents per share. Sales for the quarter were $110 million, down from last year's comparable period sales of $116 million.
The company said Irrigation Products reported improved earnings performance compared to last year on reduced sales volume. Domestic sales were strong, and margins improved throughout the quarter, while foreign and export sales lagged considerably from last year's performance as declines in European markets more than offset sales increases in the Middle East. The operating performance of Bauer is no longer negatively impacting the results. Results of the Industrial Products segment were mixed. The pole and tubing business showed increases in sales and operating profit. Foreign acquisitions in the pole business in the second and third quarters of 1991 were the primary reasons for the sales increase. Operating profits improved from enhanced manufacturing productivity and cost reductions. The ballast and rebar operations reported operating losses on significantly lower sales volumes, due to the depressed conditions in the commercial construction markets. Actions are and have been taken to substantially lower the cost structure of these businesses and improvement in operating performance is expected as 1992 progresses. InaCom Inc. (NASDAQ: INAC) reported earnings of $1.7 million for the quarter, compared to $1.2 million for the like quarter last year. InaCom is Valmont's investment in the microcomputer reselling industry and the result of the merger of ValCom and Inacomp Computer Centers in August of 1991. Increased demand for computers and computer services and cost reductions achieved in the third and fourth quarters of 1991 contributed to the improved performance. Valmont's share of InaCom's earnings were $0.6 million in this year's first quarter versus $1.0 million in the like quarter of 1991. Valmont's ownership of InaCom is now approximately 38 percent versus 78 percent one year ago, as a result of the ValCom/Inacomp merger. "Compared to last year, our first quarter results show similar earnings but on a lower sales volume," said William F. Welsh II, Valmont's president and CEO. "Generally we are not seeing growth in the markets we serve and, in the commercial construction market, industry sales continue to decline. We are beginning to see a positive impact on earnings from our focus on achieving a significant reduction in our costs and enhanced productivity during 1992, and we expect that operating earnings for the second quarter should show improvement over 1991. We continue to believe that the long-term prospects for our products and the markets we serve are promising and the actions we have taken will improve our competitiveness and profitability." Valmont Industries manufactures components for the electrical construction industry; is the leading producer of mechanized irrigation systems for worldwide agricultural markets; and has an equity investment in a major distributor of microcomputer products and services. VALMONT INDUSTRIES INC. AND SUBSIDIARIES SALES AND EARNINGS (dollars in thousands, except per share amounts) First Quarter - 13 Weeks Ended March 28, March 30, 1992 1991 Net sales $110,338 $116,273 Net earnings $1,753 $1,719 Earnings per common share $0.15 $0.15 Average shares outstanding (000) 11,516 11,518 1992 figures subject to final audit. -0- 4/16/92 R /CONTACT: Brian C. Stanley of Valmont Industries, 402-359-2201/ (VALM INAC) CO: Valmont Industries Inc.; InaCom Inc. ST: Nebraska IN: SU: ERN
MC -- DV001 -- 9139 04/16/92 09:48 EDT
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|Date:||Apr 16, 1992|
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