Valmont Industries (VMI) Misses Q1 EPS by 20c; Announces Restructuring Plan
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Revenue Growth %: -10.4%
Financial Fact:
Cost of sales: 455.22M
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Valmont Industries (NYSE: VMI) reported Q1 EPS of $1.29, $0.20 worse than the analyst estimate of $1.49. Revenue for the quarter came in at $670.4 million versus the consensus estimate of $715.36 million.
Restructuring Plan:
Given that market conditions in a number of our businesses are not expected to improve over the near-term, our Board of Directors has authorized a broad restructuring plan of up to $60 million. The initial restructuring actions will involve the consolidation of operations and other cost reduction activities, resulting in pre-tax charges of approximately $30 million. The charges will include $19 million of cash expenses and $11million of non-cash charges. These actions will take place over the remainder of 2015. Most of the restructuring activities will take place in our Infrastructure businesses where an improvement in the Australian industrial and mining economies is not expected near term and public spending for infrastructure in Europe and North America continues to be constrained. The cash expenses are expected to be recovered through lower operating costs within 12 to 18 months. Of the above costs, approximately $0.8 million of pre-tax cash expenses were incurred during the first quarter related to the restructuring.
We are also evaluating other actions that could result in as much as $30 million of additional charges, most of which would be non-cash impairment
For earnings history and earnings-related data on Valmont Industries (VMI) click here.
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