VALMONT REPORTS 68 PERCENT EARNINGS INCREASE
VALMONT REPORTS 68 PERCENT EARNINGS INCREASE VALLEY, Neb., July 16 /PRNewswire/ -- Valmont Industries Inc.
(NASDAQ: VALM) today reported a 68 percent improvement in earnings on slightly lower sales volumes for the second quarter ended June 27, 1992. "Our strong focus on cost reduction and productivity enhancement is driving our earnings growth," said William F. Welsh II, Valmont's president and chief executive officer.
Earnings for the second quarter were $4.1 million, or 35 cents per share, up from $2.4 million, or 21 cents per share for the like quarter of 1991. Sales for the quarter were $115.9 million, compared to $117.8 million in the like period last year. For the first half, earnings were $5.8 million, or 50 cents per share versus $4.1 million or 36 cents per share last year. Sales were $226.3 million, versus $234.1 million a year ago. "Some of the markets we serve," continued Welsh, "are beginning to show signs of improvement, however it is not uniform across all of our businesses." Domestic irrigation sales remain quite strong, showing improvement over the first quarter and last year's second quarter. This sales increase, coupled with a reduced cost base and enhanced productivity, has resulted in significantly higher operating profits. Export sales to the Middle East and Latin America continue to improve, while sales activity in Western and Eastern Europe remains slow. Operating profits for the Industrial Products segment improved in spite of lower sales volumes. The pole and tubing business achieved higher sales volumes and enhanced productivity which contributed to the earnings growth. Restructuring of the ballast business is progressing on schedule and is expected to be complete by the end of September. It is anticipated that the ballast business will return to profitability in the fourth quarter. The rebar business continues to be affected by the depressed conditions in the commercial construction market and operating expenses have been reduced to offset the impact of the lower sales volumes. InaCom Corp. (NASDAQ: INAC) a major distributor of microcomputers which is 38 percent-owned by Valmont, yesterday reported earnings of $2.4 million for the quarter and $4.1 million year-to-date. This compares to last year's earnings of $0.8 million for the quarter and $2.1 million for the six months. InaCom's improved performance was a result of increased sales, higher gross profit margins of company- owned locations, and synergies from the merger of ValCom and Inacomp. Valmont's share of InaCom's earnings were $0.8 million for this year's second quarter versus $0.6 million in the like quarter of 1991. Year-to-date, Valmont's share of InaCom's earnings were $1.4 million, compared with $1.6 million last year. Valmont's ownership of InaCom is now approximately 38 percent versus 78 percent one year ago, as a result of the merger of ValCom Inc. and Inacomp Computer Centers Inc. in August 1991. "As we enter the third quarter, our balance sheet is in excellent condition," Welsh said. "The ratio of long-term debt to total capital has been reduced to 40.7 percent, and we have virtually no short-term debt. Our current ratio is a strong 1.9 to 1.0. Looking to the rest of the year, we expect earnings improvement over last year in the third and fourth quarters as we continue our business focus on cost control and productivity, as well as the prospect of enhanced sales levels." Valmont Industries manufactures components for the electrical construction industry; is a leading producer of mechanized irrigation systems for worldwide agricultural markets; and has an 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) Second Quarter Year-To-Date 13 Weeks Ended 26 Weeks Ended June 27, June 29, June 27, June 29, 1992 1991 1992 1991 Net sales $115,923 $117,829 $226,261 $234,102 Net earnings $4,058 $2,410 $5,811 $4,129 Earnings per common share $0.35 $0.21 $0.50 $0.36 Average shares outstanding (000) 11,538 11,570 11,527 11,545 1992 figures subject to final audit. -0- 7/16/92 /CONTACT: Brian Stanley of Valmont Industries, 402-359-2201/ (VALM INAC) CO: Valmont Industries Inc.; InaCom Corp. ST: Nebraska IN: SU: ERN
MC -- DV002 -- 9822 07/16/92 07:30 EDT
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|Date:||Jul 16, 1992|
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