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VMI Valmont Industries

Participants
Renee Campbell Vice President of Investor Relations & Corporate Communications
Steve Kaniewski President & Chief Executive Officer
Avner Applbaum Executive Vice President & Chief Financial Officer
Chris Moore CJS Securities
Nathan Jones Stifel
Ryan Connors Boenning & Scattergood
Blake Keating William Blair
Jon Braatz Kansas City Capital
Call transcript
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Operator

Greetings and welcome to the Valmont Industries Second Quarter 2021 Earnings Conference 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. It is now my pleasure to introduce your host Ms. of and President Communications. Vice Campbell, Investor Corporate Relations Renee Thank you. Please, ahead. go

Renee Campbell

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

Steve Kaniewski

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

some opening we Before share results, like our would comments. second quarter to I recap

companies, many pandemic. our to priorities to as from want the and levels have market markets especially beginning employees consistent faced supporting begin raw global our materials be year. their recover we cost pervasive strategic pricing. our and These I execution for Like accounted in of the thank are must around the inflation, world against customers, since First, the transportation and unprecedented levels of for

been it And continue. us us as across to will to believe we our not that continue businesses. globally trends of all while increase pricing imperative economic all quickly prices has Current segments will So for to near especially the in actions inflationary mitigate for goods. durable an lead pressures take additional inflation term, needed, in

times more in steel irrigation, on example, utilizing five than For systems, irrigation price raised we've upcoming And increases. monopoles. price America mechanisms, XX%, totaling North inclusive our times raised on of seven utility, this year we've pricing in

of a we is continue over served all few the and past As demonstrated our strategic be years, have in leadership priority for will to markets. us price

Next, we our operations year who I to these would productivity and teams global with thank and unique job done this through want chain dynamics. have production supply to them commend I like an expect excellent managing business of accelerating. and continue on momentum team's on-time on to metrics, in going complete forward. as and the is persistent ship strong We're even building this proud our our focus improvement

on as $XXX.X and me increased the in to compared modernization, or in grid utility XX.X% growth generation. utility. structures. basis. well compared let hardening grew as of irrigation segments, of than ongoing Sales most last $XX.X presentation. renewable million four of volumes a with all Record was Sales recap with demand specifically on were and driven $XXX.X from strong Higher year. in summarized XX% currency of million million slide $XXX.X last year Now, by our support energy realized to broad-based constant and Starting investments second a quarter, start increased sales or brief more million, XX% nearly

$XXX.X our products of as sales components wireless Record last communication structures. or support as in a were pricing last anticipated investments, proud year. to grew well and sales operating $XX million increasing impacts, as growth in compared component engineered demonstrated drive million, as I sales and Favorable take sales increased demand this X.X% of in and volumes. our record leadership to and to to I'm regions to want price higher globally, slightly growth. currency strong teams build-outs sales support moment integrated lower X.X% of and markets sales by Moving improved by stimulus a in international benefited spending all American from lighting delivering commercial Favorable Global their to during especially grew and inflationary continues sales products. and Wireless products team of pricing offset income. X.X% especially also quarter on compared of pricing North ESS year. and to significantly transportation transportation Australia. small environment. Carrier our communication cell market infrastructure congratulate for Europe evidenced contributed XG

$XX.X favorable and $XX.X year from grew to or Coatings. million end Sales pricing sequentially due demand to million last market impacts. quarter, compared improved improving Turning of to currency and last XX.X%

aligns we the principles serving built facility with infrastructure new providing with our our recycling Pittsburgh humidity to processes second operations well demand while near at quarter enhanced region. growing Pennsylvania, this additional generate and less and for During commenced new ESG coatings opportunities. This in heat greenfield facility

or strong global million sales than income projections sales In by and technology more record our of $XXX.X strength of grew contributed North led Brazil, $XXX.X industrial second quarter were year volumes sales our to the by this in through for testament improved full where Egypt exceeded continue revenue, compared farmer average the to market net growth $XXX.X pricing higher strong International the sales driven XX% Near a all all market XX.X%, market times and have the markets sales year ongoing project across European of fundamentals sentiment delivery deliveries positively sales X.X prices growth of year-over-year. compared XXXX and Irrigation. last million region. ag farm year, to including selling fundamentals Higher and leadership sales. and sales $XXX continued million in Egypt last Strong million demand impact the to market growth. higher record served flow. sales volumes, favorable grew in to generating higher with tubing Significantly Moving XX.X% America to large order of project. grew

operations and in Regarding awarded our leadership, we more and recently project projects additional $XX demonstrating market were of pipeline management in Africa, from capabilities. our Egypt, Rwanda customers global million project new footprint than Sudan

X. Turning to Slide

During learning. the completed Technologies and Prospera machine we in of AI acquisition quarter, the leader award-winning global an

revenue how profitable rates about growth. a Accelerating corn, Investor that a yields reduce need being traditional solution. strategy. May, crops development. agriculture, pillars together by the through on strategic crop No and technology differentiated this well with tomatoes. providing long-term of this of of we this talented are services next sales industry strong potatoes, attended who on those and to have to kind as to in can the particular agricultural while brings agronomy performance in adoption variety to and industrial advanced go five investments onions, Today, approximately vertically for components With integrated Day beyond stage evidenced in growth the Through services. one our and on we for focused fields and used AI the next our sales solution Valmont our able wheat, irrigated very Prospera acres. including moving vision of Their from over offer technology acquisition, three is critical ESG currently For and than virtual resources years. solution field. our of aligning XX% year outlined created soybeans, recurring most growers life. highly tech irrigation expect recurring grow Growers innovation alfalfa technology improving company of the in-season inputs, generated critical our XXXX more acquisition this Prospera revenue we to team is to will per immediately excited half over in unprecedented one global else of are the principles you Prospera's increasing recall those the is visibility conserving Through are

expect we share going Integration be in strategy this beginning to we the in to continue XXXX, accelerated quarters. investing accretive more also and growth on our We is future segment our as services. data market acquisition well, plan to in in-season

market war and industry for the today's talent are on to in board, we data learning. and team strongest in the is XXX Additionally, the brings highly pervasive in including have science competitive. motivated machine fortunate employees Prospera and experts and talented

our about acquisition. forward this company. can builds two upon success past very It we move As years over tell, as one together the demonstrated as excited you I'm

to for market $XX sensing the ag PivoTrac, We the company helping subscription-based our technology year-to-date. grow also sales monitoring acquisition tech of and completed US Southwest solutions that million provides remote a

Turning to X. slide

growth innovation, Our sustainability business are while supporting where solar area product we another accelerating new our is commitments. and

in I'm markets. and utility Day, we both Investor agriculture, of see to solar end During talked growth opportunities both very in and growing projects our pipeline excited about

scale In $XX quarter, totaling Our globally. the awarded million. the utility were second generation projects distributed we backlog been expand solution of has as increasing projects and we

Additionally, received our status our benefits North industry-recognized American with With than and energy positioned we over orders class-of-one to the we're support market. renewable uniquely goals. the more help scale past customers chain, global of XX supply their and months, global XX the for

event. completed markets. fall we three In projects $XX Our also Brazil quarter, solar We've launch in are official sun-belt market already American Sudan, awarded totaling growth an Husker others several planning North are Days at the in solutions Harvest and agricultural million. farm like driving regions and accelerated the were second this

them to have We and solutions this utility dealer in with markets. are network, committed their We're help ESG valley also a very support delivering about cross-functional global formed excited achieve solar goals. growth partnering producers own with together we food integrated to potential. team world-class to their global large Working players team ag our

improve that Turning products ESG I our about world. highlighted conserve services, a and slide many talked build and help of several At and the more Day, ways initiatives, Investor life, to and sustainable resources our X. our

strategic It's ESG are at or that our example and priority our are Institutional before, for acknowledged is deployment important embedded drives Shareholder pleased into process us. we externally. being strategic with said a ISS. that efforts most we've our Services One initiatives Valmont, As is

held this steady to a two while a governance for and have scores at a two. a social significantly six from for has three and improved environment environment a to solid six Our year quality from social

commitment is With turn outlook. second progress our for to innovation and a While are Avner mind. to strengthening teams our call that, are partners, quarter with proud I review our in far. will XXXX now ESG as we over business we I who continuous and and this company so the have of made the grow want a to congratulate journey, financial

Avner Applbaum

and everyone. Steve, good you, morning, Thank

the Irrigation, by press year, X compared to Reg of certain XX.X%. through focus Turning and on or per of XX% $XX.X and compared engineered to appendix. $X.XX adjusted This slide very income presentation improved operating pricing, support in rate sales as operating grew my in the release rate the favorable results, planning notably last will higher a in and the in $XX.X performance Operating year, driven comments and grew share a XX.X% structures. of second driven realized outlined disclosure to million income in tax the tax Diluted than or execution volumes strategies. results G earnings of more XX% of million strong favorable quarter last primarily by more was

compared million segments. or in by of did which not allow $X.X increased of material rapidly ongoing income sales, operating costs performance $XX.X operational our rising last during pricing us offset Utility XXX more the or X.X% of the and to volumes, points million raw to quarter, slide On pricing than Support were XX, the year. Strong basis improved mechanisms recover. impact decreased Structures, to Turning

from pricing benefits of actions. taken Moving year. million last to compared $X by Structures. the deliberate, teams offset slide also of results pleased the restructuring We're points XX, more of the in of income Record our a We're to sales, million XXX proactive operating previous impact with recognizing or actions extremely Engineered rapid XX.X% or than commercial inflation. basis Support cost increased $XX.X to

across team ship-complete on-time better operations quality improved drive product to our performance the and and productivity segment, metrics. continued improvement Additionally, through delivery and

$X.X the efficiencies, and Turning to of $XX.X than million basis was to points volumes, higher, sales operational income impact compared slide raw favorable operating XX.X% Coatings inflation. year. XX. or Higher million segment, last In more offset cost XXX of pricing the material or of

growth XX.X% investments R&D or slightly slide doubled segment, higher to volumes Significantly technology pricing the strategic XX. of income million was Moving year, last were Irrigation by XX including points operating for expense In and basis $XX.X higher compared nearly sales, year-over-year. product and offset of to favorable higher development.

working We flows this Turning positive flow cash $XX despite increasing on our free positive and inflationary needs. cash million cash delivered pressures, slide continued quarter, flow to XX. operating of capital

we hand through purchase our quarter, a borrowing of credit funded closed combination for and million, acquisition This a short-term on of facility. on price Prospera $XXX revolving cash on

XXX% We also of on funded hand. assets million, of cash the by PivoTrac acquired for $XX.X

As inflationary inflation some impacts material in so we've we trends quarters, can impacts. stated subside general in create short-term continued raw market XXXX, flows. would prior The on rapid cash that outlook not expect indicates current may short-term

We expect working disruptions in also Accounts sales remain raw to capital material better line and and elevated, growth. mitigate with in pricing. us chain receivable help opportunistically inventory levels lock meaningfully to will supply increase

capital, inflation As we subsides. our historical as results have see in improvements working shown, will

returned first half through of we $XX million over XXXX to and dividends of XX Turning repurchases, summary with to shareholders, ending $XX for the just and capital share quarter $XXX of million in a spending capital cash. million of was Capital slide deployment.

XX. Moving slide now to

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

ratio to times leverage times. EBITDA to of X.X X.X of debt Our range remains our total desired X.X adjusted of within times

including to me for our key XXXX outlook, assumptions. Let an to turn metrics a slide and now few XX update

$XX.XX. an is XX% guidance We XX% fiscal and XXXX. I earnings we grow assume estimated sales take agriculture grow to for expect forward. between of driven sales outlook translation a to and now to by now the estimated are Further, sales XX% providing are be X% strong for and discuss foreign earning rationale Net fundamentals. benefit going per currency market EPS continue to XX% of $XX.XX adjusted to primarily share to sales. increasing segment Irrigation want net very XXXX to year-over-year, a year-over-year moment adjusted now to

significant As any cost a talent very than acquisition stock grant for a retention including of in technology company, is Valmont's the history, different structure purposes. Prospera restricted

reconciliation for acquired the compensation slide in as adjusted the the assets. metrics also performance We provide also press and intangible excluding financials, segment the asset intangible on presentation believe outlining future by included technology We of and table have adjusted to and Prospera's the that items in release. irrigation will a XXXX comparison A better and share-based amortization compared of release. in results. GAAP are Other historical these summarized is to appendix assumptions the metrics

Structures, by sequential on beginning Turning margin XXXX pricing slide the In to third we Utility driven quality meaningful to expect the our outlook a improvement XX. half earnings in Support aligned second becomes as segment with improvement of inflation. quarter more steel cost

Engineered to Support Structures. Moving

and lighting. of We American short-term products market continued in remain wireless for sales line demand expect softness XX%. components with expect North market and XX% in we commercial growth Demand transportation expected growth strong, in communication improved and to

demand Coatings. Moving correlate to tends End-market economic closely to general trends. to

our pricing excellence We providing customers. are value on to focused and

Moving to Irrigation.

record We to Brazil. fundamentals, A want this and couple of another that mention expect based year ag of XX% project, of year sales to growth the a very large reminders underlying for strong global sales I strength the segment. XX% timing of deliveries in estimated Egypt on in

the business the that, the due rest third sales quarter a to year, of to seasonality. is quarter first lower The normal is compared

back large With which raising deliveries will over growth Egypt turn pressures. have mentioned offset began fourth now of XXXX, project prices Second, will the Steve. affect call And as in earlier, comparisons. that, consistently inflationary of year-over-year we quarter been the I to Steve to

Steve Kaniewski

you, Thank Avner.

in closely state year At end drivers our of sustain included expected XX we see Delta segments. our at led monitoring slide to and this strong variant our Overall, in closure drivers place keep and to to continue Like have billion of to And the local from momentum across government-mandated Malaysia follow employees we these all than and and our are regulations others, there. outlook. customers quarter. $X.X evidenced The the been facilities XXXX. positive and have Turning demand more full to closures are small into backlog momentum in long-term by to safe. of three the impacts financial COVID many businesses second present, temporary of shutdowns demand the of the continue

second demonstrates pleased We and navigate the summary, of and marketplace. favorable price strong our sustainability long-term the on In our very our in ability capitalize XX. slide I'm market end-market results strategy, and strength challenging to business and to with Turning dynamics. and team's leadership this strong quarter trends believe

at and on revenue building through business model. we our As on Prospera acquisition to strategy strategy in we XX,XXX accelerating of of discussed our Investor employees remain Day, grow our focused innovation, Through which and by the of is recurring team we technology our fueled execution and are dedicated growth IoT, services. our Technologies investments talented and PivoTrac, differentiated our

we're and I capture well positioned call as demonstrated will by are year the the turn in back now future. and to poised growth over drive outlook very on financial value positive our Renee. Finally, the updated shareholder and to

Renee Campbell

At the up Steve. questions. open will this you, Thank time, the call operator for

Operator

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

Chris Moore

could start Hey. Good Maybe morning just guys. solar. we with

So in million utility $XX orders solar QX. in contracts

get big to the it feel XX? for here. trying customers? Is are how or Is projects that a two Just one

Steve Kaniewski

is Hi, Chris, this Steve.

utility will So because both we're and that that be generation the of generation targeting think distributed forward. going we mix scale

customers. look of each a project not won't I XX two. size couple it's number just the It's one but that. million or say when of So is at it's of a you -- kind

like the they a And last then the in the So developers will about range where of support utility of way out larger-scale each. distributed. to of year call $XX and we somewhere at $XX orders end were it's we to typically solar million million had

Chris Moore

of $XXX recognized more will that estimated, end one just have roughly of how XXXX? for by me. million maybe And Egypt helpful. of kind been That's contract you. much the Got The

Steve Kaniewski

started half. be quarter been last fourth would little We in pretty over it a even. year. It's Well,

being So time get by the in XX% say we through XXXX, I'd the delivered XX%, rest XXXX.

Chris Moore

want it. this accelerating really sure I to year. wasn't I'll it Got you guys. leave just make Helpful. there. Thank it

Avner Applbaum

you. Thank

Steve Kaniewski

Thanks, Chris.

Operator

you. Thank

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

Nathan Jones

everyone. morning, Good

Steve Kaniewski

Good morning, Nathan.

Avner Applbaum

Hey.

Nathan Jones

talk Can it's the start with contribution Just start Prospera, EPS? now that. half, that could portfolio. contribution revenue we you about on expected of in to Maybe second the the expected actually in the

Avner Applbaum

this is Yeah. Hi, Nathan, Avner.

So, as XXXX, be say revenue not so to it'd a in for relates nominal as up, impact XXXX. I large we ramping start would it

in XXXX. be to relates decretive EPS, actually it As it will

accretive As Steve be to segment XXXX. start to mentioned will in the

want $X.XX results in $X.XX I'd it, our So XXXX. to decretive if to say you for about ballpark

Steve Kaniewski

And would in with Prospera, I Nathan, were revenue. we since that Right. just add we already partnership were recognizing

So growth, why in incremental revenue increase the -- It be nominal. the already piece seeing some we but be be as that. there or that's will it won't be were because would substantial more will

Nathan Jones

Okay.

that's capital? is a a can long you different a to this business guys, return of that going At than than a capital? return talk take you Just earn this greater how do that does in your a you to for earn Valmont question. what is that's of -- the cost first understanding I So for it that to here for greater bit acquisition think get cost Valmont guess Prospera your about point of future

Steve Kaniewski

that are very Prospera with The margins. are than industrial higher our Sure. typical associated margins much

revenue, that this a see five growth XX% you transformative roughly about is to more gross way next anticipate And around the so, of XX% years, we the the XX% if think the with recurring acquisition. would of over to we kind margins three

the side as four, to probably go points normally, out particularly So the maybe five. the improvement the look really does that where see term. forward, you looks like But segment to more three on we change within XXX we This longer XXX start is could we as gross of years. way in basis say would

Avner Applbaum

add just more I'll Nathan, point. one

the this capital about tech think working really with being kind you a business of minimal are business, needs very capital intensity. little As working

return that's invested another capital. So on good driver for

Nathan Jones

three Where margins years? to And in today? you are do where they'll the think be five

Steve Kaniewski

Yeah.

range. again margins that that already side, the we XX% gross to On XX% are seeing -- in

continue invest. So we to will

for up. expect line business. strong SG&A as would look be industrial is the traditional continue than a would that So overall this little to But We heavier will margin it business. picks adoption a a

six, we so the We holding started market the that years really over can range as seven tech to pretty XX% XX% period. we see And declining through the past that even though saw had sales. steady our been

think comes I pretty footing we're it to So when those levels. solid on margin

Nathan Jones

levels, frame? in they operating be on margin five-year that are And And time three should the where today? to they where

Steve Kaniewski

Well, and the now of through business be growth. into they're will decretive because reinvestment for right the XXXX, back

we And closer would XXXX XX% start five And think that XXXX. year about get so four, to operating. of start be would to in see of by closer and really that breakeven if you you is XXXX things kind then XXXX, again, a to to building end the really and would

Nathan Jones

I’ll Thanks. Okay. Great. pass it on.

Steve Kaniewski

Thank you.

Operator

you. Thank

question ahead. next Scattergood. is coming Boenning Connors go of Our from Ryan & Please

Ryan Connors

are front taking Wall of you your I your for the page bury Street lot apparently that's is Thanks on question. maybe Driving out lines some take a Great. know underground of substitution Can can tragic of the example the you these events fires that this profile PG&E Journal. and as on the of a not What's that on -- kind to the fact high risk, are just mean, there a your of I announcement they're that risk The us one wanted concern, wave tape above-ground of I from to on going causes there. this take of of reaction my behind give but lines I new some -- of kind get that future. the to because power try your their a guess, lines that USS?

Steve Kaniewski

a this they may -- XX really Lake heat high-voltage and in bury But part really a Yes. think a from PUCs push very maybe this generated times payers makes it the transmission construction, as perspective. in tinder said it box back And from really we -- which to impractical is something we see What It's XX take that on we've and total Champlain. of rate saw before, selected kind times perspective cost with more it really does I Ryan. push We through the do see areas on. other that of it. small, back

long-haul at So offer way substitution distribution. the is structure tech solutions, in miles. operators for the to we more that of seen kinds we've things. in side, least on that which been the the at which it visibility see our And much much right more business. for able smaller and us intrusion There's both a more of on a distribution of in way and the, distributed remote to California a for a I'll us specific is earthquake we've you of where monitoring from also And are part the play tends is participating that the of be a at we level side fiberglass both to least have concrete what some those the solutions fire as call right-of-way give

to pretty will be our make it's it it types substitution that business, pertains small. least there. at think as still But of It's I out a from So does very something sense certain areas. in

Ryan Connors

Got it.

headwind inflation good of goes thing. right quarter just middle of big if record and of a of in talked yet a Okay. inflation That's you that's helpful. posted it And But environment. actually suggest your inflationary the was I and kind it other nature. mean, my this in portfolio at how as a impacts one a you picture about sort away looking that businesses. just And

prices you why seeing commodity doesn't about to if I farm peers are think steel mean, the businesses. is that and of helping a your and be obviously incomes, is because inflationary irrigation you seem the business, environment demand. So up, other of lot hurting it's the business, because ag

you help from would sort be I inflation there? circumstances mean -- more of or demand changing cost offset even of negative than the that side earnings and So environment really an standpoint, that away with going us on by that helps would though out that

Steve Kaniewski

reason so utility our about up fast moves it as pricing catch comment enough. Yes. headwind can't our most specifically The is fast the mechanisms particularly for in

margins. so it abates catch-up see just And if significant will a in inflation as plateaus, pretty even then we

just into more moves we X% a we'll how it said, inflation. very were but if healthy margin. XXXX, So the catch business, typical think inflation this go Long-term a you on some business. that's provide have it for quickly we It's we've our in about does drag like up X% to if always when

to it's to been could catch So the the we is handle of lot you're your $X so It in destruction, worry a price. We've about to able in leverage capital that up dramatic million worried could we wherewithal that you're just which normalized consume has be more why markets pricing It's just maybe But costs been steel even does you plateau a as which working right strong. not with meantime, present too Irrigation. in time but that not Irrigation or of demand that. well It's about a didn't something to seen to and it. capitalized you in very have are consideration. of catch it rate the pass-through utility tend because inflation playing But we in little the growth up get is more another either fast. worth get we've we a we're been catch

Ryan Connors

response. Well, look Got appreciate comprehensive the I it.

Steve Kaniewski

you. Thank

Operator

Thank you.

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

Blake Keating

is Hi. for Blake morning. Keating This on Good Brian.

Steve Kaniewski

Hi, Blake.

Avner Applbaum

Hi.

Blake Keating

improvement still first the second last meaningful in margin. You guys half? be bps around half expect bps mentioned versus XXX call utility Do to sequential XXX that to you improvement the

Steve Kaniewski

I'll It normalized definitely more of Yes. approaching margins say, our, in kind of be would there.

second of we of as think segment the year. get look closer you back would the to about at operating performance half if XX% at the we the that XX% to So

Blake Keating

of project? Got nature? the or any follow-up. prebuying Brazil anything Egypt are just the Was what of drivers strength one further quick some Irrigation the ahead it. outside What's Then of -- of behind in price that in increases strength the of international

Steve Kaniewski

It's It of markets. broad-based. is served one every our

it's projections. And on income normal so you based ag and look farm at very if good just net Europe, fundamentals

US Europe our Europe Western mentioned the across kind well. we Africa really in the to a And chicken, built all and the project commodity of the protein still demand outside program stocks that comments. and up say, really US Europe, to beef. next FINAME let's it's pork, is And and so work dollar-derived board Russia as get there area Brazil, of Eastern Brazil, have whether Ukraine that's extremely helping the the as have additional accelerated seeing fact both Egypt back performed We're

pretty US shortages there in know and the we both around As here there notable the are in China. out some world

So the driving flow what's order those globally. fundamentals are

Blake Keating

Got you. it. Thank

Steve Kaniewski

Thanks, Blake.

Operator

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

Jon Braatz

Good Avner. morning, Steve,

Steve Kaniewski

Good morning.

Jon Braatz

industry question area seems giving momentum. In point, guess, just point. market in your I solar some at gaining you that are or business business solar gaining industry Steve the that my be yourself of the is is see what -- this do you matching solar And rather the sort in to at you? is this share strong

Steve Kaniewski

I'll twofold. answer it

in there. very the steel careful we're some the shortages around and of I think that particularly of are PV profiles out because short-term cost the

the Some players in industry caught. got We didn't.

because some would simply been loss-making. foregoed we orders have it So

we those space us and think that I levels, I that's US and more is good can see announced, market. a are as the us more think the for very at And as where our quickly. brand-new money. of business at In people we've of awards make accelerating particularly that accelerating look some margin we agricultural in

electrical of hit food processors to contractor, their targets. large risk electrical contractor, et ways And so ESG about don't to are cetera. go They want as to own another have thinking performance

business a years. utility as in of well for balance our our over generation bankability the valley power been as well that's dealer sheet, company So the network, XX

going forward. I market share grow to think we really as us that's go help to

around market structure, utility great to and IP. a So generation by on was solid other is generation recalibrates kind still ground as a that very new see quarter And to teams the compared you'll I it think the as the cost sources. start solar the both of

cost the goes I in of that idea think this is kind minus market in see you'll what the environment. of kind away

Jon Braatz

you. Okay. Thank I other have one question.

you their the might situation there On North side, good a American quarter their as the in pretty to irrigation to tax it look in a call that income? farmer growers a surge as And year-end, year. to try envision business be is taxable have fourth at the going if reduce you want would at they

Steve Kaniewski

of Obviously, we've tax that be pronounced. would kind that out the some dynamic seen there if changes Washington that of As happen. past, that it could it's in would stand so right D.C. were very now plausible more

purchase standing take as planning seen it through But occur. a way it's scenario farmers ready it advantage we're if do the so and of to we've together. does tax plausible And quite

Jon Braatz

Yes.

Okay. All much. you very Thank Steve. right,

Operator

Thank you.

a Our next of is question go Ryan follow-up Connors coming from ahead. & Scattergood. Boenning Please

Ryan Connors

Does company to market. we've happen? to follow-up. Hey report for ironic. debating pretty record that It going situation. report of your at revenue are and earnings mean exclusively Valmont's it's cover sort I get I bill -- I week just us infrastructure we're for What's point? to Congress third take? stocks of three taking build your take of mean like We three. infrastructure going that's to the "stimulate" the things thanks and kind for and company to think well. I the need on got the this even the an infrastructure sort market for seems do yet still you this like infrastructure wanted stimulus

Steve Kaniewski

an said state spending because make our build in business. earlier and had would to for in the guidance. incremental states that what accounted in That's majority vast and up us We be our Yes. of our not see outlook we infrastructure

it's more the like came a in federal level at adrenalin if market. So, additional to really

be business terms the help but it in of move incremental business so, not necessary And way just would it's it things performs would our to it along would quarter-over-quarter. definitely our

of and telecom come on are the kind highways other I chances think it. and that still to good the side It's along that and debatable pay going that out still how for least at of is they're funding bridges, based will something transmission roads.

so something out would see I it's but come on to of the that. speak having say not to right business So banking XX-XX we're now

gotten Now, seen Europe, and it It part of stimulus. we in through. business They've our Australia have current profile. a even the in helping is

Ryan Connors

us, projects magnitude, just remind US you of revenue? percentage can big total say And road and as a is of let's how Valmont, order highway-type what's

Steve Kaniewski

traffic the probably Well it. I'd the itself $X maybe segment is is half. say lighting within three And close I'd work, and DOT piece the ESS that say if of billion of segment, quarters to

Ryan Connors

Okay.

Steve Kaniewski

-- we and have The commercial just to commercial goes that the piece. lighting then DOT

I way it. think the that's look So at to probably

Ryan Connors

again for Got thanks your it. And time.

Steve Kaniewski

Thanks, Ryan.

Operator

like closing comments. I'd to back Ms. turn for Campbell, the to over floor time, this At

Renee Campbell

us today. everyone, for Thank you joining

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

Operator

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

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

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

time. at Thank participation. You may disconnect you this for your lines your