For the second quarter ended July 1, 2023, Valmont Industries said net sales were $1.05 billion, a decrease of 7.9% year-over-year from $1.14 billion. When accounting for the 2022 divestiture of the company’s offshore wind energy structures business, the decline was 5.7%. Operating income grew 12.6% to $133.7 million versus the same time period in 2022 at $118.7 million. Net earnings were up 17.4% to $89.4 million versus $76.1 million for the same period last year. The company reported diluted earnings per share up $4.21 year-over-year compared to $3.53 for the same period in 2022, which Valmont said was a record.
Valmont’s agriculture segment accounted for 26.6% of net sales, and came in at $279.9 million in sales for Q2 2023, down 25.9% year-over-year. In North America, the company reported a decline in sales, as the second quarter of 2022 benefited from the ongoing delivery of record year-end backlog and growers delaying capital investment decisions in the quarter. Operating income in the ag segment decreased to $49.3 million versus $58.0 million in the same period last year. Operating margin improved, driven by favorable pricing and improved overall cost of goods sold, partially offset by higher SG&A, including incremental R&D expense for technology investments.
For the first half of 2023, Valmont reported net sales of $2.1 billion, a drop of 0.4% year-over-year. Operating income rose 18.1% versus the same period last year to $252.2 million. Net earnings for the first 6 months of the fiscal year were up 18.4% year-over-year to $163.9 million, and diluted earnings per share came in at $7.67, an increase of 19.3% year-over-year.
Valmont updated its 2023 full-year outlook for net sales to 0-2% year-over-year versus it’s previous outlook of 4-7%. Its outlook for diluted earnings per share remained unchanged.
