On July 15, Nebraska, US-based producer of engineered steel structures Valmont Industries Inc. issued its financial results for the second quarter of 2010, saying that the key driver of the results was the substantial decline in global utility sales and profitability, and deal expenses in connection with the acquisition of Delta plc.
In the second quarter of 2010, the company's net profit was $17.1 million, compared to a net profit of $44.2 million in the same period of 2009, decreasing 61 percent. Sales revenues of $481.6 million in the second quarter of 2010 saw a 3 percent decrease from $498.8 million in the same quarter of 2009.
Commenting on the 2010 outlook, Valmont's chairman and CEO Mogens C. Bay said, "Lower volumes, particularly in the utility business contributed to substantial de-leverage of fixed costs and a 46 percent reduction in operating income for the company. Expenses and fees related to the acquisition of Delta plc of approximately $12.0 million after-tax were an additional burden on earnings."
As SteelOrbis previously reported, Valmont Industries Inc. in March consented to buy UK engineered steel products manufacturer and galvanizing services provider Delta Plc, carrying out the acquisition afterwards.