Valmont posts 4Q earnings up 5 percent, says expects 2010 earnings to fall 25 percent

Valmont Industries 4Q earns up 5 pct

OMAHA, Neb. — Infrastructure products manufacturer Valmont Industries Inc. said Wednesday that its fourth-quarter earnings rose 5 percent as lower expenses overcame a sizable drop in sales.

Valmont also said it expects 2010 earnings to drop 25 percent on weakness in the power and construction sectors.

Company shares fell $2.31, or 3.25 percent, to close at $68.69.

The company, which makes telephone poles and structures for traffic and utility customers, said it earned $30 million, or $1.14 per share in the 13 weeks ending Dec. 26. It earned $28.5 million, or $1.09 per share, in the same quarter of 2008.

Sales dropped 19 percent to $398 million, due to declines in business from customers such as utilities and federal and state highway departments. A late harvest also led to lower sales of irrigation equipment.

But operating margins increased due to factors like lower interest expenses.

Analysts polled by Thomson Reuters expected earnings of $1.01 on sales of $409 million.

For all of 2009, Valmont earned $150 million, or $5.73 per share.