Valmont Industries, Inc. has reported financial results for the fourth quarter and fiscal year ended December 31, 2022.
Fourth Quarter 2022 Highlights
- Net Sales of $1.1 billion increased 17.5%, a fourth quarter record
- Operating Income increased 116.2% to $109.7 million, or 9.7% of net sales (increased 32.9% to $113.7 million or 10.1% adjusted1) compared to $50.8 million or 5.3% of net sales ($85.6 million or 8.9% adjusted1)
- Diluted Earnings per Share (“EPS”) of $1.86 ($3.57 adjusted1) compared to $1.25 ($2.73 adjusted1)
GAAP EPS includes a pre-tax loss of $33.3 million or $1.54 per diluted share from the divestiture of the offshore wind energy structures business
- Generated strong operating cash flows of $142.5 million
- Repurchased 60,200 shares of company stock for $20.0 million
- Announced and completed the divestiture of the offshore wind energy structures business, Valmont SMTM, which had been reported in the Renewable Energy product line in the Infrastructure segment and is now reported as “Other”
- Incurred GAAP tax rate of 40.6%; adjusted tax rate was 27.4% excluding the loss generated from the divested offshore wind energy structures business which provided no tax benefit
Full Year 2022 Highlights
- Record Net Sales of $4.3 billion, an increase of 24.1%
- Strong sales growth as Infrastructure grew to a record $2.9 billion and Agriculture grew to a record $1.3 billion, including 17.6% growth in agriculture technology products and services
- Operating Income increased 51.1% to $433.2 million, or 10.0% of net sales (increased 34.6% to $449.7 million or 10.3% adjusted1) compared to $286.8 million or 8.2% of net sales ($334.0 million or 9.5% adjusted1)
- Higher operating income was led by favorable pricing and volume growth in both Infrastructure and Agriculture
- Diluted EPS of $11.62 ($13.82 adjusted1) compared to $9.10 ($10.92 adjusted1)
- Generated strong operating cash flows of $326.3 million, a significant improvement compared to 2021, driven by higher net earnings and improvements in working capital performance
- Capital expenditures were $93.3 million, including approximately $30.0 million for strategic investments including a new concrete utility structures facility in Bristol, Indiana and irrigation capacity expansions in Brazil and Dubai
- Deployed $39.3 million of cash to acquire a majority interest in ConcealFab, accelerating the Infrastructure segment’s global telecommunications growth strategy
- Returned $86.3 million of capital to shareholders through dividends of $45.8 million and share repurchases of $40.5 million
- Achieved Return on Invested Capital of 12.9% (13.3% adjusted1)
- Year-end backlog of approximately $1.7 billion, an increase of 2.1% since the end of fiscal 2021, reflecting sustained pricing and continued strong market demand across the portfolio
- Realigned financial reporting from four reportable segments to two: Infrastructure and Agriculture, to elevate focus on market growth strategies, capital allocation, and technology development
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