Valmont Industries Inc. (VMI) announced that it has acquired majority stake in South Dakota-based AgSense. With this acquisition, Valmont’s portfolio in remote monitoring and control technology for agriculture will further expand.
AgSense’s advanced global WagNet network offers growers a comprehensive view of their farming operation by coordinating irrigation decisions with field, crop and weather conditions. Per Valmont, the collaboration will enable its customers to receive what they wish for.
Moreover, the cutting edge technology of AgSense, along with its customer service and an excellent reputation, fits well with Valmont’s strategy and portfolio. Valmont’s leading BaseStation products when combined with AgSense’s offerings will provide broad range of solutions to the market.
On the other hand, AgSense will be benefited as this partnership will increase its presence in North America, and will provide it with opportunities to accelerate international growth.
Valmont released its second-quarter 2014 results recently. The company posted a profit of $64 million or $2.38 per share in the quarter, down roughly 28.6% from $89.6 million or $3.33 per share in the year-ago quarter. Earnings per share were in line with the Zacks Consensus Estimate.
Valmont, which is among the prominent steel-pipe and tube companies along with MRC Global Inc. (MRC), Mueller Water Products, Inc. (MWA) and Tenaris SA (TS), registered revenues of $842.6 million in the quarter, down 4.1% from $878.7 million in the year-ago quarter. The decrease was mainly due to lower sales in the Utility Support Structures, Coatings and Irrigation segments. Sales lagged the Zacks Consensus Estimate of $860 million.
Valmont currently carries a Zacks Rank #3 (Hold).
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