Valmont Industries, Inc. (NYSE: VMI), reported financial results for the second quarter ended June 26, 2021. The tower fabricator recorded sales of $269.4 million, an increase of 6.3 percent year-over-year, citing favorable pricing, higher sales of wireless communication products and components, and $11.5 million of favorable currency impacts primarily from the Australian dollar.
“We achieved record second-quarter sales, grew adjusted operating income nearly 40 percent year-over-year, despite persistent inflationary pressures that meaningfully impacted our Utility business, and delivered adjusted earnings per share growth of more than 50 percent,” said Stephen G. Kaniewski, President and Chief Executive Officer. “These solid results reflect the strength of our businesses, our continued focus on pricing actions to help offset inflation and the outstanding execution by our teams around the world.”
Kaniewski said higher volumes in Utility Support Structures (29.9 percent of sales) were driven by continued strong underlying market demand for improving grid resiliency and increasing usage of renewable energy. Valmont saw record second quarter sales in Engineered Support Structures (30.1 percent of sales) and an improvement in operating profit margins to nearly 12 percent.
Wireless communication products and components sales of $54.6 million increased 7.2 percent year-over-year. Increasing capital investments from wireless carriers and favorable pricing led to the sales growth.
“The strong market drivers we are seeing across our businesses, and our team’s proven ability to manage through this unprecedented inflationary environment gives us confidence about the remainder of this year,” Kaniewski added, “and provides good tailwinds for us into 2022. On that basis, we are raising both our revenue and earnings guidance for 2021.”
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