Valmont Industries, Inc. (NYSE: VMI), a global provider of infrastructure products, reported financial results for the second quarter ended June 29, 2024. Valmont’s Infrastructure sector (73.1 percent of Net Sales) provides products and solutions to serve the infrastructure markets of utility, solar, lighting, transportation, and telecommunications, along with coatings services to protect metal products.
Valmont President/CEO Avner Applbaum said, “Our team demonstrated their dedication to enhancing shareholder value by delivering another quarter of operating margin expansion and earnings per share growth. Our Infrastructure segment benefited from declining steel costs, contributing to higher profitability. We are steadily progressing in adjusting and expanding our factory output, creating flexibility to meet the evolving needs of our customers, a strategy that will continue to yield benefits in future quarters.”
Sales of $762.7 million decreased one percent year-over-year. Telecommunications volumes were much lower due to a softer market environment compared to last year. Solar volumes were also lower due to project timing. Pricing was favorable for the segment as steel index deflation was offset by favorable mix.
Operating Income increased to $133.6 million or 17.6 percent of net sales compared to $116 million or 15.1 percent of net sales in the second quarter of 2023, driven by improved commercial execution, pricing strategies, lower cost of goods sold due to declining steel costs, and reduced SG&A expenses.
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