Valmont Industries, Inc. (VMI) has reported an 18.23 percent rise in profit for the quarter ended Apr. 01, 2017. The company has earned $38.98 million, or $1.72 a share in the quarter, compared with $32.97 million, or $1.45 a share for the same period last year.
Revenue during the quarter grew 6.85 percent to $637.47 million from $596.60 million in the previous year period. Gross margin for the quarter contracted 116 basis points over the previous year period to 25.82 percent. Total expenses were 89.88 percent of quarterly revenues, up from 89.55 percent for the same period last year. That has resulted in a contraction of 33 basis points in operating margin to 10.12 percent.
Operating income for the quarter was $64.50 million, compared with $62.36 million in the previous year period.
"Revenue increased across all segments, led by a strong performance in Utility Support Structures Segment," said Mogens C. Bay, Valmont's chairman and chief executive officer. "All segments saw improved demand and contributed to the sales growth, which supports our outlook for revenue and earnings growth in 2017. "As expected, rising steel and zinc costs pressured operating margins in Engineered Support Structures and Coatings segments, where sales price increases somewhat lagged cost increases. All other segments had good operating performance."
Operating cash flow drops significantly
Valmont Industries, Inc. has generated cash of $35.98 million from operating activities during the quarter, down 55.32 percent or $ 44.54 million, when compared with the last year period.
The company has spent $15.58 million cash to meet investing activities during the quarter as against cash outgo of $16.14 million in the last year period.
The company has spent $2.86 million cash to carry out financing activities during the quarter as against cash outgo of $23.37 million in the last year period.
Cash and cash equivalents stood at $425.22 million as on Apr. 01, 2017, up 9.67 percent or $37.50 million from $387.71 million on Mar. 26, 2016.
Debt remains almost stable
Valmont Industries, Inc. has recorded a decline in total debt over the last one year. It stood at $756.34 million as on Apr. 01, 2017, down 0.53 percent or $4.05 million from $760.39 million on Mar. 26, 2016. Interest coverage ratio improved to 5.71 for the quarter from 5.64 for the same period last year.
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