Valmont Industries has reported financial results for the quarter ended March 27.
Overall net sales increased by 14.9 percent compared to the first quarter of last year.
In agriculture, global sales increased 46.5 percent due to higher volumes across most markets, particularly in the Middle East, and higher technology sales.
North American ag sales increased by 15.2 percent compared to 2020, driven by higher volumes across all irrigation product lines and higher industrial tubing sales.
International sales in ag more than doubled year-over-year and increased more than 125 percent in local currencies. The company also reported a record global backlog.
“We achieved solid sales and earnings growth across the majority of our businesses this quarter through proactively implementing pricing actions starting in fourth quarter 2020, which helped largely offset steep inflationary pressures,” said Stephen G. Kaniewski, president and CEO. “Sales growth was led by significantly higher sales in the irrigation segment including a 34 percent increase in technology products year-over-year, as higher agricultural commodity prices are driving positive farmer sentiment ….”
A statement from the company said it has taken steps since the pandemic began to strengthen its global supply chain.
“Valmont has been able to continue procuring raw materials and components critical to its operations, particularly steel,” it said. “Other supply constraints have been largely mitigated by effectively utilizing the company’s global footprint. Further, current constraints at global seaports have not significantly disrupted its operations.”
In its second quarter outlook, Valmont expects net sales to increase by 17 to 20 percent compared to last year.
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