VMI - Earnings call transcript Q3 2020 | Valmont Industries, Inc.

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Operator

Greetings. And welcome to the Valmont Industries Third Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure your my Ms. now is to host, introduce It and of Renee President Relations Corporate Campbell, Vice Investor Communications. you. Thank

may You begin

Renee Campbell

Thank now slide available next will Please and A or subject call on which presentation today’s President Steve end this the of webcast be you, me and Vice Third Executive to Chief Chief discussion X Quarter outlined replay Slide are discussion today’s Donna. will Financial Valmont morning, Kaniewski, Corporate Officer; XXXX be our the Good Steve Tim on Vice conference for disclosure It the call seven Earnings Controller. morning Avner and Officer; Applbaum, This Call. I will President and and the President call from available the With President on Investors Executive presentation. call at welcome today’s Chief to and is Industries strategy on accompany Kaniewski. for Senior results, provide the long-term our a of and of Steve. update Executive an brief Avner outlook, commentary days. from the review in business to webcast page and statements, valmont.com. followed that quarter closing will call. live would quarter with will financial this full turn at read our applies will of over and the outlook. by to is to forward-looking Steve download performance of Officer, note like quarter our on our summary is third Q&A. be fourth today’s and This remarks third A provide our and also Francis,

Stephen Kaniewski

us. thank and Thank you, joining morning, for Renee. Good you everyone,

start couple quarter would like comments. with Before reviewing results, I our a third of to

operational proud extremely financial results. solid and another First, globally of XX,XXX delivering of employees quarter for I’m our

continuing strategies impact perseverance, teams on customers. times on focus our to continued quarter of our and with the our executing these have minimal, the for serve pandemic while our this was businesses managing uncertain While

safety one of employees the our communities our in and number we priority. the are be Importantly, continue to

work possible to limit vigilant place in We policy our to manufacturing Our individuals administration and facilities. remains areas. for remain our work remote all in procedures distancing facilities the safe of our at and number teams adhering where

quarter Significant million we remain X segments employees coating last lower and operate disruptions third to was COVID-XX sales to customers sales Utility growth factories let were the to due to Engineered for me to manage of by expected operational. sales keeping unfavorable lower compared the in. to operational due segment backbone better offset the Support Irrigation end impacts Support year. impacts. pricing in each serving from of primarily Overall presentation. turn of With we partially company, Structure segment Our Valmont to their and continue Structures and other all our to extremely the or across than and performance. summarized X.X% a profitability of in market successfully revenue currency and segments, our Slide I’m dedication communities our and and support as $XX increased that, million, recap the Net on our $XXX grateful

year. across to compared hardening in Turning XX.X% led pole earlier announced also offer grid Global energy and the to substations includes generation substation grew led that from last require Utility also starting for of that strengthening distribution also higher transmission solar and by sources sales, sales products earlier Volume the $XXX.X led growth were of Growth demand efforts and sales growth. by includes renewable Support was sales strategic higher that operations Higher utilities, million, by and project transmission was large products which solar which additions trackers by capacity segments in were completed in Europe, products. higher, we driven ongoing Structures, North Northern contributed wind global year American robust structures. additional significantly the sales this utility to and sales, this volumes year, product with all tracker by project lines.

X.X%, sales grew lower structures, support this from engineer build the lower sales to was disruptions end growth Sales sales XG to by certain to quarter, structures sales. year. sales In of by lighting decision were markets spending of North $XXX.X for primarily lower products and of expectations. to Turning project million lighting market Sales is demand in communication last system transportation lead in and down components. and tracking drive to carriers and to last favorable due higher continues compared to in ramp commercial Europe, very to our American affect Access Wireless strong compared line to a growth outs declined in impacts And primarily with quarter XX% X.X%. In America lines. markets strategic exit wireless sales continue year, North our last pricing. Capital traffic in were markets, product driven X.X%, COVID compared India. year. markets of international volumes

volumes on of highway Moving and by in oil which volumes and particularly North economic to million last more increased to compared X.X%, was to bridge better end America internal than expectations. pricing than in markets. COVID offset higher from international initial customers, year, and due coatings, $XX.X volumes, were commercial building gas, Higher lower impacts market our sales and

of last sales segment year. X.X%, declined million Irrigation, compared $XXX.X to to Moving

all products, acquisition to industrial last North low Solutions year lower of Brazil, unfavorable source furthering and Brazil, was grew cost and ESG. costs. driven of as well strategic as Solbras, offerings market to Australia, European recent our to product another X.X%, X.X%. sales to In provide sales International include local which sustainable, pivots we commitment a including quarter Excluding by lower in in Strong record America were conditions currencies. to in to strengthen In compared which growth, than delivered volumes sales, contributed down XX.X% flat. Valmont Irrigation energy impacts and steel sales sales were higher markets sales. Higher grew our system currency in tubing of as volumes sales more Solar were lower by sales our power improved other offset

strengthening We have of investing locations while expanding technology, the by year. aftermarket and programs dealer this since network training dealer our more parts across there, start country in expensive been XX% the than

expect is is corn market input. We sugarcane remain viable and food ethanol demand now particularly as used expanded to strong, being production in a

experienced which to have give a a equipment provide conservation XXX,XXX the than X.X the To We Minimizing standing announced the use for size local of freshwater of context, month. size Working times and last more of million multiyear that critical for dealer, a the agreement other projects of progressive we solutions will address Egypt, together of are delivering project are agricultural resources under scale pivots to issues, water $XXX food two excited ancillary with very natural Los our technology acre and are help customer this Angeles. long with conservation secured land Irrigation be security. we city complexity. and critical in and

technology, water. will use sensors, importance Our which of customer fresh has recognized utilizing the including of maximize the most the advanced

address need the agriculture to Additionally, food urgent in nations pandemic an for has security to current concerns. created invest

of enhance access local to Projects farm these economy Our that availability grateful When their and of farm nations highly and the our customer and and will connected the opportunities largest taking the this of to engaged is acres strengthen is solution. in food aggressive like a are address transformative, world. need growing populations. are robust, become pipeline as feed to we steps completed, part be

the and market the strong of this the technology ramp uniquely the will and solutions leader, first speak As order the flexibility positions quarter continue chain, to expectations strength about call. for our to of presence and the in global fourth are and through commercial scale. more have Avner execute us deliver of to just expected later local supply market relationships, Deliveries started segment and quarter advanced this fourth supplier quarter, XXXX. projects in

to Turning X. Slide

As future in the portfolio COVID the to mentioned vary the quarters, for across continue our which businesses business. are we impacts assess and basis we to had potential prior

a Along outlook decreasing and North America in Irrigation outlook, large as international last well coatings. food two as service the from profiles changes having announcement moderated that with supply making year of risk less our been disruptions risk grower the improve that given We In a with quarter’s is lower multi our chain increases are supply and view have sentiment for. optimism Irrigation may by for dire in ethanol order accounted prices. recent and growing profile commodity

improved a has risk to moderate on view profile. coatings Our

speak later end call. levels production economic COVID in disruptions Avner industrial stabilizing are the clear. more fourth many quarter markets specifically due impacts indications of have to our in As assumptions the becoming and to will and been

Turning X. to Slide

being to a a As elevated by we a ESG priority. sustainable commitment advancing strategic as have our company, more organization

commitment and and our and energy company our on constant improving years operations resources conserving to work usage ESG founded progress two including our goal. and reminder us Since been resource a of the of emissions scope global tagline conservation, our More these have carbon on other nearly efforts one the report, purpose providing principles, ago, sustainability was disclosures and important we we on globally life focused becoming on of the highlight in the electricity a development agriculture, Our Energy’s and infrastructure plants recently XX our We is in life companies increasing inspiration. where supporting support generate. our and they better Department of products to of In sustainable for energy efficiency and XXX live. in program, and XXXX efficient quality joined the across to our and savings facilities. enhancing over solutions use communities water program U.S. partner we

the Joan track XX-year Services. Senior world in for General and most growth the future business board class leveraging industry at a the the On National technology as at recently excellence aid Ms. seasoned at look appointments for focus, retired Ritu both Board diversity highlight will the to as Vice operational to President strategies. President Ms. to further And Of her Valmont record Valmont’s and perspective, the spearheading and strong Joan of These board’s Board. governance Valmont Global Instruments Chief advancing and Company, our digital Engineer technological Senior high-tech journey. recent industrial IoT Ritu welcome Boeing Corporation. Boeing and front, the we operational We and career to a enhance Vice recently Directors. forward leader continues Manager is I’m Robinson-Berry. appointments pleased them level its our from experience Her expertise. of two industry Favre company semiconductor

for shared Additional I quarter third our of outlook. be Avner, and will future and ESG that, With progress turn to the quarters. fourth quarter our our highlights now journey over call in review financial will

Avner Applbaum

good Steve. morning, you, And everyone. Thank

note the focus press Reg presentation third outlined in also as fiscal for Please to results accounting and exclude results, X the which per discontinued adjusted was earnings operating the XXXX. the G purposes, references and Turning of to the method appendix. income the beginning share, Slide inventory, disclosure that LIFO in at in quarter comparison of and on XXXX of comments my appendix will for release the

operating improved operational X.X% and or to quarter of driven by $XX.X efficiency. last X.X% year, income pricing Third compared of sales favorable million, grew

diluted earnings compared Third XX.X% quarter of $X.XX, year. to last per share grew

on quarter, to adjusted XX% year. basis comparable rate Third tax an last of was

segments operating income the or operating segment, in Slide drove year. Stronger XX the over international to on Turning X the sales improved million, of profitability businesses operational improved improvement. Structure Support volumes, XX.X% performance basis increased and points of $XX.X last income in Utility

were over India. Moving last million, and despite market lower operational volumes or of sales in Structures, $XX.X of pleased year. COVID-XX performance, Support to demand Engineered in pricing impacts to we points XXX operating increased XX, XX.X% due with international Overall, continued mainly weaker from discipline, improved income basis very Slide

favorable year. and cost adjust quality volume. in quickly pandemic, to of international sales Since of the the XX. our $XX.X of on Turning this million, the been excellence standard than points work or basis year. markets, to operating beginning favorable and operational higher more anticipation was XX.X% able to continued structure Slide volumes in last a pricing we income coating In Higher XX earnings have focus led segment, lower of of

growth XX.X% or pricing Moving was to Irrigation offset income basis year. volume million, Favorable higher by the operating more for expense segment, XXX Slide technology sales R&D and last of points decreased of than compared lower to sales strategic XX. investments. In $XX.X

XX% flow to quarter, even to we a Slide with solid last Turning operating this year. strong a flows, operating year-to-date performance on in of million flow delivered XX, cash leading cash $XXX.X improvement cash

payment, down Third of quarter of receipt include government and payments. customer cash flows operating large a current tax deferred U.S. payment the a and

Our relentless focus capital delivering on working is results. management

growth we outlook quarter deployment, million on and liquidity. opportunities, focused remain the related Capital as on business investing while capital We impacts September Slide to cash a is our Turning our more on shown XXth strategically year-to-date position summary clear. became ensuring on and to resumed in repurchase spending XX. was $XX.X this pandemic program share optimal

returned capital with approximately the approximately million During dividends the ending $XXX have quarter repurchases, through cash. of $XX.X of share million quarter we to and shareholders

plans Moving between now to Capital highlights. sheet are $XX $XX million for Slide to range XX XXXX spending expected for to million. balance

continue pipeline have acquisition to investments. prioritizing strategic We an and active are

strong until with remains debt maturities XXXX. sheet balance Our significant no long-term

at of total to times remains ratio our net desired to EBITDA to range adjusted debt leverage adjusted one-time. of X.X of X.X EBITDA and within X.X Our is our debt times

few of to be would XX. function true enablers business. areas to and Last a partners to quarter, in a about transform I like spoke I finance to to opportunity briefly finance. our Turning focus our take Slide highlight strategic minute to the

technology people advanced streamline and the company. opportunities strategic and to innovative more using are capital we to automation processes, and redeploying in First,

utilizing be to For across time are certain greater will Automation real Process implementing transaction and and repetitive enhanced example, automate reporting or Robotic dashboard the analytics, we RPA, organization.

applying with machine develop forecasting whereas time learning starting non-backlog cycle and making, shorter science to taking our approach advantage and AI quantitative based businesses. real capabilities the research to Second, of data decision and

starting will system with to continue while coatings management business. optimize We ERP data enhancing our

we Third, execution to strategic further improve of working driving priorities capital. are

work inventory that operational and implementing have standard and material shipping We expanded capacity. have through our enhanced reduced flow improvements

and contract improve accounts turnover. We negotiation are also refining advanced to receivable payment management help processes

most the on growth for providing important talent we organization. opportunities career across Importantly, are development our and focused as asset

treasury expanding use also our in services of SG&A. such shared of developing as excellence key centers areas and are We

and its We are sharing the to creating updates partner improve return as of these invested effectiveness on value. in forward confident will that accelerate look maximize strategic you natural quarters. further stakeholder long-term function, the initiatives evolution with capital, and finance future I

million X% with slide press supporting to in sales are and metrics to are million our now this operating any between key estimated assumptions update release. to including for including to XX restructuring X% be margins Slide excluding outlook, Let $XXX Key me turn assumption for between and the on an and net of financial activity. quarter. Net fourth outlook $XXX sales, the summarized

segment, some for accounted to guidance some has visibility our Turning and providing the In Slide projects XX. are the There which benefit is Structure risk backlog Utility associated good quarter. strong additions capacity to Support range. with international of our the been fourth in

and providing Engineered Moving both lighting good long-term Support Structures, communication transportation and and solid. fourth our backlog and visibility to traffic quarter is to current remain the structures sales for market components trends wireless

outlook. has compared expect this accounted system fourth be We Sales which cause last in to Access first expected to product India. our this ongoing and seasonality down XXXX Europe effects across for sales. the can revenues expected in the primarily has slightly markets line quarters normal to similar the three international due of are to been are timing this for improved profitability of year, economic and during a and to from be year uncertainty pandemic quarter more

coatings, improvement closely industrial tends and we as continue demand levels correlate to demand. market end expect recover, to in a to to levels production those modest Moving

Irrigation, we recent are optimistic Moving and encouraged commodity in to that grower certain trends sentiment. overall will by prices be increases positive these for are

for project XXXX more sales to of We similar markets. timing sales international lower increase Irrigation than XX% have expect deliveries developed margin slightly of margins which are based to the compared be international operating to Egypt. XX% to quarter to fourth on large profile a projects, large expected estimated and tend segment to previous The

turn call Steve. emphasis another cash continued over Finally, driven that our to we expect will With operating capital and the I working solid back management. now flows quarter strategic of by

Stephen Kaniewski

Thank you, Avner.

XX. Slide to Moving

stated investment As we FAST are levels the In our Support fundamental renewable Fund our all level. hardening record Trust of for million drivers on in approximately Engineered the markets the year In our and necessity business the for of remains funding some for $XXX backlog remain increased development market intact. trends. Act independent one of have year, and positive lighting solutions and near demand government extension The and and ongoing recent expected utility Highway business. robust across grid is energy economic general Structures, demonstrates at transportation infrastructure of

expect commercial demand continue. markets we Although weak in to lighting

if good expect Australia need packages to and investment impact provides state stimulus for factor also countries. into announced. upside receipts lower as and Europe XXXX additional near-term in of the suburban structures impact similar an tax in budgets potential we announcements Looking economic Recent in this build are believe demand stimulus accelerate wireless and ahead in environments, spending in markets XXXX, are and and particularly infrastructure as jurisdictions rural relatively work critical in markets investments for expected as some will number and to in be communication drive will with are stimulus supporting increasing local their other outs plans. nature components, XG demand infrastructure additional and of short-term in school-at-home We to those Growth communities. carriers measures macro in

we business industrial grower And prices Our and economic our will remain sentiment closely of infrastructure follows critical coatings well activity. principles. recent ESG that solid within preservation trends in life commodity that in steel is The lift cautiously and Irrigation, of improvements production are drivers optimistic North in and extending American the markets. general the

change. and strong agility well is months doing large momentum good despite team, into and leading performance of well Slide multiyear to our and the year, through this nine project in on us is to In ability the summary, Egypt our disruptions, our XXXX. business a through testament international of Our for first providing the scale is uncertainty XX, macro manage

of communities and reinforce continued and health employees supply our chains. the and safety ensure Our protocols protection our will

addition enduring to growth advancing leadership of long-term in market through strategic our drivers across segments. growth the adjacent leveraging technology and are all investments, and We

Our employees of this value. the stakeholder remain in outlook results our reflects this confident our our operating in for environment, investments making growth. for while and keeping long-term community solid dynamic building year We and remainder execute and safe to performance, ability delivering

growth on to fully future, in framework core program. we workforce, personally as each to are day have of to retirement our early position inspiration today. improvement, strategic every again a focus history, and remains and an dedication will appreciate your over done, truly we we and values thank have profitable recognize now and for of Company future. an Our to and success. you you And your the the now employees years tenured Valmont to chosen our continued invested and look We Renee. intact, with all of that success who we your and I participate our and every shaped capital the the on is return in have Thanks has those Valmont by incredible as all made one what us. to contributions call celebrate to each back for I service, want turn

Renee Campbell

call Steve. you At Thank up this time, may questions. for the you, Donna, open

Operator

is Securities. Instructions] CJS you. for coming floor go Please first Moore open of now from Chris [Operator The is Our Thank question questions. ahead.

Christopher Moore

Hey, good morning, guys.

Stephen Kaniewski

Good morning Chris.

Avner Applbaum

morning. Good

Christopher Moore

revenue other international morning. solar outstrip revenue talk in positioning and the And know you America America North Good do competitive to little of you some little kind the players of on versus within Nextracker. offering North your Perhaps bit side. about a a Maybe term, on expect longer bit talk like then, Array the of solar the solar?

Stephen Kaniewski

against, easily the say are just competitors mentioned, solution the very we competitively that starting with is you in field. where we off let’s have constructing so a Yes,

for construction product. put it that lot really built of has contractors the easy together it So the often into for this a allow that tolerances like

fact is of controls we that plus more well do have highly in system say solar do a would as of with as other we these easily contracts of those out the are not of have as the many with haven’t very we more place. with, other developments. can in product. an with a long the business from to to trackers in fact you our a utilities. there. we by competitive We solar is software them also a presents not the invited in majority we that we the the SCADA competitors, developer land. have are to those utilities There utility standing build Alliance have And level thing Our the field, being the market the as that cost assist their positioning that advantage I thus, farm the against we the that the have therefore done is solar And software U.S., U.S., that relationships as perspective the

projects solar So number that and overall XXXX, XXXX, build look grow we a trackers pipeline few to U.S. we over obviously, CAGR we the will into already next about expected The have continue projects of a feel and look of as years. pipeline into as in the the the market we is now. XX% to for XXXX

have nice obviously, durable, for there. market So relationships utilities and we construction, terms out then we feel long-term that us this in a that we of that growth the is are advantages competitive different both our bring supply with highly with the chain,

Christopher Moore

Got me, of $XXX just in expected cadence little Last one, Can helpful. the irrigation the it, of for just talk order. revenues? million years over about next terms terms bit two you in a extremely

Stephen Kaniewski

Yes.

kind Obviously, that underway hit XX-months expect run rate. than slower the really we event would getting a of ship the the quarter year starting thereafter. to place, next for a next, then are have we always So to shift chain supply in and fourth of run rate as in say a we in is quarter. But the to with get you first

is it shipping a the think, around a kind bit. run over indication. a probably can butter I it peanut then take So the you if But schedules of rate and good little move XX-months,

Christopher Moore

appreciate Got guys. line. it and Thanks will back turn I I in it.

Stephen Kaniewski

Thanks.

Operator

Thank you.

Please Nathan Stifel. question next from go coming is Our Jones of ahead.

Nathan Jones

everyone. morning Good

Stephen Kaniewski

Nate. morning Good

Avner Applbaum

morning. Good

Nathan Jones

about the follow risk that you have more talk going if part of talk are the you bit project. that Egypt a large risks that in I know on up little front, I employed the you a irrigation wonder to management You that I’m financial the think you is the wondering not are down related holding payment that bag left to you have here do going Avner ensure around about you that, you some about that? are in world. that LC, add capacity how stable you could can talk in then to how the supply on Can around to of safeguards not third some project? kind do need different if managing the are of And What chain. in the project? place in supply that logistics places, you of the quarter,

Just that those you managing the large kinds are things project? such of a risk around

Avner Applbaum

hey Okay, sure.

me the question. address of part let So first your

the down So this credit. we throughout that cash progress receive We we have have project. to related from that QX that yes, did And additional confirmed payments entire payment do a of helped do our letter this project. was

between feel our the pretty progress secure manage risk to the the LC, and project, and we really pretty with payments So this minimize confirmed much risk.

Stephen Kaniewski

Yes.

we management hits another quite coming have facility. well. From installed. is those a So there for based our back hold lot from a the we that the out Dubai shipment to geared of as it portfolio. little closer project supply is it that expanded once port, chain, get obviously plants We multiple And is certain we will gets then that perspective A shipping and very on. this of amount it couldn’t outstanding recently as in be up of Nathan, a the amount this are hits

on as third place. not anywhere everything further begin to for our to dividends quite early, with to that will have roll some capacity we let’s as pay taking now will well year we off last quarter, did in we is within Irrigation that will regard, And this add inventory this diligently that we in supplement suppliers, or In us that. the order, ship worked as investment year. have so capital the say So

So this. very would we risk say about the feel from to good mitigation a I perspective, overall

will there. We assistance in And dealer install. to with based of the dealer know asks on technical that that regular quite who providing works we Egypt, as technology and the commercial that it some a presence deployments the pertains the have is are basis. well be We to customer

bigger So overall, out have done it project a that is the large we in we the had, of not elsewhere have realm deliveries of world. just but the ever scale than

So feel risk mitigation about good piece. we the

Nathan Jones

Thanks, on the there color customer profile Just give Does the gross you the project, helpful. I projects closed margins, color were is can probably lower you this us margins? that And there you what get significantly of likely has XXX had it think any margin guys years. with this margin over overall kind those said largely fairly that of basis I forward drag of any few some on offset power very around then only historically, but was bidders maybe this? lot aggressive as here. go a is more Is mean, can Well, maybe side and SG&A on higher I I this was I revenue last on you pretty that us had would here? know the your two kind give leverage that on have be mixed points from more international imagine imagine of the that to contract, we

Stephen Kaniewski

sure. Yes,

this product Just of to bidders is of margins they a the point. that nature put at the way. From it slightly than we from as yes, quality this large scale let’s actually more was perspective, segment there all the there and stand say lower was because around than of made obviously deliver a the project. on series the ability The mentioned, you out margin was to couple bidders it world. the actually And through it that there

see factories margin that on And differences the from and offset With that you the in operating help mentioned, SG&A. you factors side. both we gain leverage leverage will some of the - gross the

be operating we segment. just, say, margin let’s from slightly So compared this percentage decretive as ultimately to the to expect an

Nathan Jones

it Thanks that on. Okay, is I very helpful. will pass much,

Stephen Kaniewski

you. Thank

Operator

you. Thank

go is coming Please D.A. from next of ahead. Davidson. Our question Thielman Brent

Brent Thielman

and talk should Hey good if to X.X across Maybe you the little part we as morning, fourth thanks, in bit I into spread we that see be XXXX? quarter. about million restructuring state get segments. and two quarter fairly exit the what involves a The guess of question. great that charges look sort

Timothy Francis

is Good morning take Francis. one. I that it for quarter. million Tim Brent, third will $X.X The

by You release the we biggest we to a market to end related the was And presentation. receivable as of that can is related renewable it energy detail segment utility. accounts see at of component an end probable, no in of The was an longer in it international press collect. decided will as the well the

nonrecurring we nature. valuation collect We actively still to up allowance but a had try will set to against in is it, That certainly on it.

and you into move we referenced are $XX sort of be going early for component we the release retirement press million to QX cost the biggest to in program. of the is see, what going the the As restructuring

few are a have what right will they have than the we in we now. of not much seen bigger here But considering We last be couple quarters. things other

Brent Thielman

Yes.

about that last some this of pocket think kind of and of timing, is for Great. slowness the on that the a in recall, quarter Okay. about guys was of bit this the is the you a been had And shortfalls if transportation little or U.S. you if talked just like air have maybe the then other lighting bit looked the of market question It I guys, in good of project budget talked you function been wondering a portion of segment quarters? the terms timing, pretty I an had preceding here I quarters. was few in in

Stephen Kaniewski

Yes.

It were term the it related, to the pothole as some were some uncertainty. states. used since budget of have key is put obviously, internally There that kind traffic. is a and hold, on projects We

back. to year. that we open kind and indicators not working, then getting But next is do that as at level But macro expect meeting laws levels As to into out we we same to progresses. this come come all that back more least of start approved not enter there the of starting quarter, mentioned last normal were of the should see pipeline the the kind as projects year is we really and are because people

Brent Thielman

you. Thank in back Okay. will I queue. get

Operator

you. Thank

William Our of Drab is Blair. Please from go Brian next question coming ahead.

Brian Drab

for morning, good question. Hi thanks my taking

Stephen Kaniewski

morning. Good

Avner Applbaum

Good morning.

Stephen Kaniewski

and revenue forward the there. the you you it forward of some you and a comments to line But that fourth you that huge backlog I’m guess, XXXX going be there. as I quarter around in And rate the third what great run in international, obviously, are put forecasting the a you given I the some run on a XXXX. On positive terms quarter. look just in rate what Utility step-up is half from number mean wondering, up business risk the are made segment, for seeing the could - first

Stephen Kaniewski

some that that projects of into function in the U.S. over the this COVID of last getting of as we Yes. And a were due really the what of kind year. well the as is delayed to approvals half said moving

that and quarter, it the were utility projects if basis. year-over-year go that double that international we still expect the always as active, kind there be at be. are in lumpy into as into large fourth still of would and will But was through a this on U.S. because some business as but digits be more with least And to the very then flatten look we nearly somewhat are So that business look to as XXXX. you will start XXXX, lumpy, at will in online, comes to as up pipeline it we year XXXX not is

Brian Drab

Okay.

kind have more of this down the segment? some years kind is $XXX-ish - to third in like or to which in So do driven this people anomaly that have million, level? a is you level million this like want And that $XXX of was extent. sustain that an back delays you I’m can level you best you that this a you just this that come and by pandemic though, wondering does the quarter, done assuming entirely wasn’t Or it in to sequentially, isn’t

Stephen Kaniewski

Yes.

that So quarter of little range work would $XXX-ish heavier. bit a million that. third as think kind you about was probably

moderation, see move So rate we still nice a but bit a little growth will as forward. we of

Brian Drab

it. Got

as you And X% discussed, business overall took I is get carrying the margin are Day. for you volume And you approach in XX% time, then this When And a momentum to the if couple of into momentum Okay. looking we and great operating momentum to XX% then have get the the the wondering, X% pandemic related back. guided I’m businesses you and now XXXX go are to costs you that Analyst I’m to years, can across the quarter, just hoping that some to margin. have you back operating just know we fourth irrigation. we that? And just at XX.X% in can now to at out with XX.X% XXXX, start that to coming to goal?

Stephen Kaniewski

we first years. for in about know you EFS, over the XX% four mean, finally are I time Yes.

good lines our to that taken we is see seasonally product invested third the the capital. we have of quarters. don’t exiting better quarter the a there Systems, actions Now certain But Access return on of restructure one that across portfolio

and to All up international get We approach The chain of time. the XX% ESS grow. utility generation over obviously, is to that The segment, will piece help those supply piece. leverage. move continues

is North in continued as Coatings to we and the XX%. as in the the get be very time solar that rebound strong. will to a that those robust Irrigation will specifically, business well over as feel have America off legs market, any market. We better pricing you there We businesses leverage on for of see that get

along the So you if execute to of a XX% are Irrigation the XXXX. to all does margin North us operating into XXXX and see And to continue America, provide and those, leverage used we well to margins our kind for segment of markets, with will in that up international start through in to. and you get should coming build Coatings, we as the trend getting path back

Brian Drab

Thanks Got it. Okay. much. very

Operator

from Capital. John Braatz ahead. question go next Our Please City Instructions] of coming [Operator you. Kansas is Thank

Jonathan Braatz

reservoirs terms dam. as Ethiopia dam? And new of of might the a back a concerns given opportunity insight to Ethiopia what Renaissance returning Steve, in Africa. the Great has this Sudan everyone. morning result irrigation kind filled. and to is as and been Ethiopian being dam are The completed What there Good of production food into you have land any about particular bringing and do maybe as of result heightened the in Sudan do security,

Stephen Kaniewski

just Yes. just that. They projects list before long to have place. place. develop the Sudan being water, last because dam the over normal didn’t on their for There in and started of even of really do are in was a the years itself, big allocation Nile terrorist pumping sanctions few time,

works terms it hopefully, obviously, kind But record Sudan the into open things level of of to But curve rains, they Ethiopia, The and expected. We have if tremendous seen is future, filled and time. kinds use drought has that the development. from projects item of and there really canals a itself is between the than that get banking, famine good and release is will agreement be a list dam delivered flooding the just eased kind provide starvation good only this already. kind Sudan a the off. matter really settled. are And in Ethiopia and is would and reservoir And to the look much I coming to behind thing a that. up pipeline a in now recent be a as Sudan lot for number off going up the you outstanding what first dam would say, has further what there distribute of opportunities. will place fully right help most of provide to of It of the to to tensions to Sudan of forward. issue is of impetus has been and a pumps rate. pivots probably that times public primary of of place of has water people in which accelerated opportunity the tourism quicker the foremost, cycles of those over in really Egypt, see Ethiopia will

to still the delta dissimilar not they great of of feast out. a these kinds Northwest with the River why worked and the it have tensions here. famines would say formed to I But which provide itself in place, in So get Nile first is come down, have the the rains, the really but opportunity, Columbia

along along the as see could many over you see You the Columbia River time. pivots as Nile

agricultural it opportunity. get populations that large-scale development. with we the necessities, pivots is good food and a So obviously, It their to feel the great And country. is are way for best production

Jonathan Braatz

answered production in Steve, the I when with you Africa, assume pivots? but going bring is they always be irrigated maybe new to question, a almost center new it on

Stephen Kaniewski

Yes.

the think that to off. everyone have knows I water that they that comes conserve

type production, And drip grow probably machinery, you pivot irrigated that it will crops but kind some will with whether the so any heat. or be pivot, see on of in if of of more frankly, type that based

Jonathan Braatz

Okay.

all it? tracker or want - your call Is question last to it for the by your Okay. is you utility project. tracker on solar certified, approved mean the approved domestic One across approved industry I utilities solar if

Stephen Kaniewski

completed. testing I Yes. process. has accelerated aging get to testing. individual wind utility what That in would each their that place But has had uncertain we say channel was been and

are some bid of point. get approvals you bid. We you at But utility this able to every them as -

this point.. first But them is U.S. take inhibitor the in an nothing at on bidding as work us that will is place. with there the So to project, that we

Jonathan Braatz

Alright perfect. Okay, you thank very much Steve.

Stephen Kaniewski

Thanks John.

Operator

Thank you.

Please Our D.A. ahead. question Davidson. go next Thielman Brent of

Brent Thielman

X% anticipating China, between is Can that North sort segment. you and get just about this the saw are what a three you. regions accelerate in you wireless of growth nice profitable three start the know all little America a Steve, business. thank talk of and for you it Europe back on And I to to quarter? Okay, piece in then the XXXX. to you more

Stephen Kaniewski

couple Yes. as down pricing China. with attractive. been nearly is will number There is over us not start has players I last China there, of the a years. of for the

and up bit in very of the have continued because was So little market the Spectrum of strong to pressure TIMO a The you China. would auctions. seen U.S. down ramping performance. It have

to And a of starting that where in we the and offering there Netherlands then also of to said our line very a in but us us with strong that the or tracking [componentry] growth. to we growth included see deploy We that run are second throughout nominal mount was XG Europe projects not is the in or see U.K. that the they (Ph) to come back. expectations. the a growth. tower provide have think is pole, on players light really feel terms because a in or more we and It a active completely whether a industry and they will you So saw was sales this particularly start pole are And allowing cities. I are really half of it, other on And XXXX and macro XXXX. in is product of or with to We that building, whether just It all entire the some in support the are capture year, pole across whether able our line, sentiment. to the similar antennas. something rate tower we

Brent Thielman

that that of Yes. decremental in years? of the couple And kind the impact China in to last terms stabilize Do should of impact you expect in?

Stephen Kaniewski

smaller It of a the this portfolio Yes. overall telecom it piece much point. and is is stable, at

Brent Thielman

stabilized this feel on Access at that I like sales Okay. you facing some actually follow-up have sequentially. systems. you was Do pressures you And are are year-on-year it then there, point? the know looks sort like but business of up

Avner Applbaum

pretty Avner. is we better Yes. would pretty place. a This got say, is I feel yes, we It much stabilized. like to it much

of black on I on start kind the and it pretty say keep business. But good working expecting right would is improving are to We now. the stay in

Stephen Kaniewski

always place. what tailwind very to had are in may the basically small product rebound, for got we speak, Asia so to just business is of it is some a but And lines some that secular Yes. issue a Australia part are provide rearview macro in has The we Australia the with to profitable the a been things mirror. that you the strong. are, drivers of do with And waiting right there. there least now Really, we mining seeing the that at

Brent Thielman

Thank Okay. guys. you great.

Stephen Kaniewski

Brent. Thanks

Operator

Ms. to for you. time, turn like floor comments. I this Campbell would over to closing At the back Thank

Renee Campbell

Thank today. you, joining us everyone, for

next call be speaking look today’s or forward available we for playback and you quarter. days, again our to will seven on mentioned, with website by the As for phone next

Operator

that Included based within on light forward-looking Reform trends, conditions, the be statements of as which XXXX. circumstances. in other perceptions Litigation in are in to are experience operates These under believed management this forward-looking appropriate Act historical Valmont management’s of factors has expected statements in of assumptions well of current meaning the made industries Securities as discussion Private and developments the future the

risks, listen comments, involve which you control should of understand not are some uncertainties, these guarantees are that to results. As performance statements you They these beyond or and of consider assumptions. and Valmont’s

of include, things, Valmont’s these Although them results the on based factors are and company statements. many and The governments. among cautions discussion, you does made this and this cause in any any changes should factors affect other anticipated These financial update acceptance actions not date forward-looking of competitive availability that statements forward-looking management those could believes be actual differ reasonable forward-looking that financial from market assumptions, company reports performance and raw aware to specific the price of the continuing materially and suppliers, effects economic to circumstances, to and the new forward-looking undertake discussion included and as outbreak of in environments statement domestic its international and foreign efficiencies, the of economy developing on customers effects to the time out and domestic availability Valmont’s of general and including of the effects in time conditions, Securities and as factors is that operating and the on statements. market COVID-XX, product industry as described and well products, the of policy from risk material, economic company’s results, Exchange company pricing, and future the Commission business and

Valmont Industries (VMI) 22 Oct 202020 Q3 Earnings call transcript