For its third quarter ended Sept. 30, 2023. Valmont reported net sales of $1.1 billion, down 4.3% year-over-year. 

Operating income (loss) was ($24.2) million ($120.8 million or 11.5% of net sales adjusted) compared to $110 million or 10% of net sales in 2022 ($114.1 million or 10.6% of net sales adjusted).

President and Chief Executive Officer Avner M. Applbaum commented, “As expected, North America agriculture sales decreased year-over-year due to continued muted farmer sentiment and third quarter 2022 benefited from the ongoing delivery of elevated backlog. I’m very pleased with our reduction in inventory which helped deliver strong operating cash flows."

Valmont updated its full year 2023 outlook for net sales to be down 3-4% year-over-year.

Agriculture Segment

In the Agriculture segment, sales were $298.5 million, decreased 8.8% year-over-year as higher international sales were more than offset by lower sales in North America. Sales of agriculture technology products and services globally were similar to last year.

In North America, the sales decrease was primarily driven by lower irrigation equipment sales volumes. Farmer sentiment remained somewhat muted during the quarter and the third quarter of 2022 benefited from the ongoing delivery of elevated backlog. Average irrigation equipment selling prices were comparable with last year. International sales growth was driven by higher project sales in the EMEA region, a record sales quarter in Brazil, and higher sales in Argentina.

Operating income (loss) was ($99.7) million ($38.5 million or 13% of net sales adjusted) compared to $43.3 million or 13.3% of net sales in the third quarter of 2022 ($47.4 million or 14.6% adjusted).

Workforce Reduction

In a late October SEC filing, Valmont stated it was reducing its workforce by approximately 360 administrative employees (or approximately 3% of its total workforce and 8% of its administrative workforce), which it said will "streamline segment support and reduce cost." This will be coupled with an early retirement program.

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