CHICAGO Valmont Industries Inc. recorded a 34.6-percent year-on-year increase in third-quarter net income on sales that rose 8.6 percent from the same period last year, the company said in its earnings results.
Net sales for the coating businesswhich performs galvanizing, painting and anodizing servicesreached $71.4 million, a 3.5-percent improvement from the third quarter of 2011, while the segments operating income grew 30.3 percent year on year to $18.5 million.
The coatings segments boost in operating income was attributed to favorable trends in input costs and improved productivity.
The increase in sales in Valmonts coatings business came largely in North America. The strongest demand in the region was in the utility and agricultural markets, according to the Omaha, Neb.-based company, which provides coil coating services and produces metal-intensive products for infrastructure and agriculture. The Asia-Pacific region experienced a softening in demand, particularly in Australia.
For the nine months ended Sept. 29, net income rose 48.8 percent to $169 million on sales that increased 16 percent to $2.21 billion.
Operating income for the coating segment jumped 37.8 percent to $54.6 million in the first nine months on sales that grew 4.4 percent.
"While each segment had record third-quarter sales, the major contributor was the substantial increase in utility support structures sales," chairman and chief executive officer Mogens C. Bay said in a statement.
Based on current business conditions and trends, Valmont expects a strong finish to the year and the potential for a record year in 2013, he said.
"For coatings, short-term demand will be most influenced by the speed of a recovery in the U.S. economy, and demand trends in mining and industry in the Asia-Pacific region," Bay said.