>>> Valmont lowers FY14 EPS guidance

Valmont lowers FY14 EPS guidance to $9.35-9.65 (from $10.00-10.50) vs $10.36 Capital IQ Consensus Estimate; sees Q2 EPS of $2.35-2.40 vs $2.80 Capital IQ Consensus Estimate

Co commented on its 2014 earnings outlook.
  • "In the Utility Support Structures Segment, the mix and timing of projects currently provide less favorable profits than what we have seen in recent years and less than our prior expectations for this year. We now expect operating income as a percentage of sales for this segment to be in the range of 12% to 14% both for the second quarter and for the year.
  • "In the Coatings Segment, the weaker Australian economy has negatively affected the profitability of our galvanizing businesses in that country and the less favorable exchange rate has dampened the results from all our Australian operations.
  • "As expected, our Irrigation Segment will have an unfavorable comparison for the second quarter compared to an exceptionally strong second quarter in 2013.
  • "We expect improved profits from our Engineered Infrastructure Products Segment.
"Our prior guidance for 2014 indicated earnings of between $10.00 and $10.50 per diluted share. To reflect the more challenging environment in our North American utility structures business and the continued weakness in the Australian economy, we currently expect full year diluted earnings per share will be in the range of $9.35 to $9.65 (vs $10.36 Capital IQ Consensus Estimate). This guidance excludes the effect of our stock repurchasing program on earnings per share and any one-time adjustments that may take place during the remainder of the year.

"It is too early to comment on any changes that might be expected for the second half of the year for the Irrigation Segment. At this time our guidance anticipates Irrigation Segment profitability for the second half of 2014 at approximately the same level as 2013's second half. Since we announced our capital allocation philosophy on May 13th, we have repurchased approximately 436,000 shares, 1.6 percent of outstanding shares, for a total of $69 million out of an authorization of up to $500 million.

"We now expect diluted earnings per share in the range of $2.35 to $2.40 for the second quarter of 2014 (vs $2.80 Capital IQ Consensus Estimate) compared to the record $3.33 diluted earnings per share in the second quarter of 2013."