Sale has little effect on Valmont earnings

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Posted: Thursday, February 6, 2014 12:00 am | Updated: 2:06 pm, Thu Jun 5, 2014.

Valmont Industries Inc. has sold a 7 percent ownership stake in Delta EMD as part of the Omaha-based company’s original plan to divest noncore businesses related to its 2010 purchase of London-based steel pole manufacturer Delta Plc.

Valmont still holds about 49 percent of Delta EMD shares outstanding and has received almost $13 million in dividends since acquiring its stake in May 2010.

Analysts covering Valmont characterized the latest transaction as little more than a distraction, since Valmont’s earnings per share included only a marginal revision in the wake of this sale. Valmont reported $10.97 per share for 2013, and had estimated $11 per share.

“I think the market is looking more at that and all this other stuff is noise,” said Jon Braatz, a partner and analyst with Kansas City Capital Associates.

At the time of the acquisition, Delta Plc owned a 56 percent stake in Delta EMD, a South African supplier of material used by producers of disposable batteries, as well as a 49 percent stake in Manganese Metal Co., the largest global producer of manganese.

Valmont sold its stake in Manganese Metal Co. in February 2013 for about $38 million in cash and dividends.

The company will report fourth-quarter earnings on Feb. 20.

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