Editorial

Valmont showing growth

Thursday, April 27, 2006

Valmont's quarterly report shows just how important a role its new McCook plant plays in the company, but also just how much it really is a world economy.

According to its news release, Valmont's first quarter sales are up nearly $40 million, to $303.6 million.

About $87 million of that, a 24 percent increase, can be directly attributed to the irrigation segment, which produced operating income up 56 percent to $11.3 million for the quarter. Efficient operations such as McCook's plant helped make that possible, according to the release, as well as more sales at a higher price because of the demand to replace equipment damaged in storms. And, more and more of the equipment is going to new overseas markets, according to chairman and CEO Morgens C. Bay.

But a quick look at the above numbers indicates just how diversified Valmont is. From a producer of irrigation equipment, the company has grown to derive most of its income from other markets.

For example, it's a clear No. 1 in traffic poles, utility poles, communication towers and galvanizing services, as well as irrigation equipment, according to an Omaha World Herald take on the story.

And, the company is developing wind power support structures, a market with unlimited potential, as is Valmont's involvement in wireless towers in China and worldwide.

Bay said the company is continuing to emphasize "best practices" across business units, while still attempting to keep employees informed of and involved in the company's long-term strategy.

Wall Street is taking notice, with shares continuing to climb, up 117 percent to $53.10 since last year's annual meeting when they were trading at $24.46.

It's encouraging that McCook can count Valmont among the growing companies with which it can play a part.

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