Valmont Industries Cuts Earnings Guidance

(RTTNews) - Fabricated metal products maker Valmont Industries Inc (VMI) on Monday lowered its earnings outlook for the fiscal year 2014, citing mainly reduced fourth quarter demand for irrigation equipment, production and shipping delays of utility structures as well as the impact of a stronger U.S. dollar.

Valmont, based in Omaha, Nebraska, now expects fiscal 2014 adjusted earnings of $8.10 to $8.20 per share, down from prior guidance of $8.55 and $8.65 per share.

Analysts polled by Thomson Reuters currently expect Valmont to report earnings of $8.60 per share for the 2014. Analysts' estimates typically exclude special items.

The company said that in the Irrigation segment, net farm income and crop prices are well below last year's levels and led to a greater drop in fourth-quarter North American demand than anticipated. The company has reduced expenses in response to the lower demand, the benefit of which will not be realized until later in 2015.

In the Utility Support Structures segment, revenue is lower than expected due mainly to internal challenges in meeting production schedules.

To address performance and cost structure in the Utility Support Structures segment, several changes have been made to drive operational improvements, the company said.

Valmont said positive earnings comparisons in the Engineered Infrastructure Products segment are expected in the fourth quarter versus a year ago.

Valmont said the Australian industrial economy continues to experience softness, which hurt the Coatings and Engineered Infrastructure Products segments. A strengthening U.S. dollar versus the Australian dollar contributed to lower sales and earnings in the company's Australian operations when translated to U.S. dollars.

Valmont will report fourth quarter earnings on February 17.