Valmont Industries Inc (VMI) Reports Q3 2023 Earnings and Updates Full-Year Financial Outlook
Valmont Industries Inc (NYSE:VMI) reported Q3 2023 financial results on October 26, 2023.
Net sales for the quarter were $1,050,295, a decrease of 4.3% compared to Q3 2022.
Operating income for the quarter was a loss of $24,190, compared to an income of $109,972 in Q3 2022.
The company also announced an organizational realignment program to streamline administrative support.
Valmont Industries Inc (NYSE:VMI), a global leader in infrastructure and agricultural productivity, released its Q3 2023 financial results on October 26, 2023. The company reported a decrease in net sales and a loss in operating income compared to the same period last year. Despite these challenges, the company's Infrastructure segment saw growth, while the Agriculture segment faced headwinds.
Financial Performance
Valmont's net sales for Q3 2023 were $1,050,295, a decrease of 4.3% compared to Q3 2022. The company reported an operating loss of $24,190 for the quarter, compared to an operating income of $109,972 in the same period last year. Diluted earnings per share for the quarter were a loss of $2.34, compared to earnings of $3.34 in Q3 2022.
Segment Performance
The Infrastructure segment, which comprises 71.8% of net sales, saw sales of $755.1 million, comparable with last year. The Agriculture segment, which makes up 28.2% of net sales, reported sales of $298.5 million, a decrease of 8.8% year-over-year.
Impairment of Goodwill and Intangible Assets
Valmont recorded an impairment of goodwill and intangible assets in the Agriculture Technology reporting unit in Q3 2023. This was primarily driven by significantly slower growth of Prosperas agronomy technology solutions compared to the original financial projections.
Organizational Realignment Program
Valmont also announced an organizational realignment program to streamline administrative support of its business segments. This is expected to result in a more efficient and effective structure for driving long-term profitable growth while reducing costs.
Updated 2023 Full Year Financial Outlook
Considering the Q3 results and the near-term demand outlook for telecommunications markets, Valmont updated its full-year net sales growth and earnings per share outlook. The company now expects net sales growth of (3%) to (4%) and GAAP diluted earnings per share of $7.20 to $7.50.
Despite the challenges faced in Q3 2023, Valmont remains optimistic about its long-term outlook. The company is committed to optimizing margins and earnings while generating strong cash flows, positioning it for profitable growth as it streamlines the organization.
Explore the complete 8-K earnings release (here) from Valmont Industries Inc for further details.
This article first appeared on GuruFocus.
