5
0
0
2
T
R
O
P
E
R
L
A
U
N
N
A
ON A
GLOBAL
SCALE
1
2
6
8
10
12
14
16
18
20
21
FINANCIAL HIGHLIGHTS
MESSAGE TO FELLOW SHAREHOLDERS
VALMONT AT A GLANCE
ENGINEERED SUPPORT STRUCTURES DIVISION
UTILITY SUPPORT STRUCTURES DIVISION
IRRIGATION DIVISION
COATINGS DIVISION
TUBING DIVISION
GLOBAL PRESENCE
BOARD OF DIRECTORS
FINANCIAL AND CORPORATE INFORMATION
VALMONT LEVERAGING STRENGTHS ON A GLOBAL SCALE.
FINANCIAL HIGHLIGHTS
Dollars in millions, except per share amounts
2005
2004
2003
OPERATING RESULTS
Net sales
Operating income
Net earnings
Diluted earnings per share
Dividends per share
$
1,108.1 $
82.9
39.1
1.54
0.335
1,031.5 $
70.1
26.9
1.10
0.320
837.6
54.6
25.5
1.05
0.315
FINANCIAL POSITION
Shareholders’ equity
Long-term debt as a % of invested capital1
$
328.7 $
36.2%
294.7 $
46.3%
265.5
30.9%
OPERATING PROFITS
Gross profit as a % of net sales
Operating income as a % of net sales
Net earnings as a % of net sales
Return on beginning equity
Return on invested capital1
YEAR-END DATA
Shares outstanding (000)
Approximate number of shareholders
Number of employees
25.1%
7.5%
3.5%
13.3%
7.7%
23.8%
6.8%
2.6%
10.1%
7.6%
24.8%
6.5%
3.0%
10.5%
7.4%
24,765
5,700
5,336
24,162
5,600
5,542
23,825
5,400
5,074
1 See footnote (2) on page 22 of this document and items (a) and (d) on page 22 of the Company’s Form 10-K
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
1
MESSAGE TO FELLOW SHAREHOLDERS
Y
A
B
S
N
E
G
O
M
R
E
C
I
F
F
O
E
V
I
T
U
C
E
X
E
F
E
I
H
C
D
N
A
N
A
M
R
I
A
H
C
2005 was a good year for our company. Our product line diversification
and broad global coverage enabled us to deliver record revenues and
net earnings. Strong performances in our infrastructure businesses
more than offset a significant downturn in our irrigation businesses,
both in the U.S. and abroad.
In my letter to you last year I mentioned
two specific areas where, in my opinion,
we needed to improve: Operating income
as a percentage of sales, and efficient
use of our invested capital. I am pleased
to report progress in both areas. Our
operating income increased from 6.8
percent of sales in 2004 to 7.6 percent in
2005, and I am confident that we will see
further improvement during 2006. We
reduced our working capital significantly
during 2005, and our return on invested
capital improved. Our strong cash flow
allowed us to reduce our long-term debt
to well within our comfort zone.
The Engineered Support Structures
Segment, which consists of poles, towers
and specialty structures for the lighting,
traffic and wireless communications
markets posted strong growth both in
revenue and earnings. In the U.S. market,
we are starting to see demand improve
under the new Federal Highway Bill, and
we are making good progress in building
a highway sign structures business. We
experienced much less turbulence in the
steel markets during 2005 compared to
2004, which helped us return to more
traditional margin levels. Internationally,
I am very pleased to report record results
2
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
t
I want to congratulate my fellow employees around the world for their
accomplishments in 2005 and for strengthening Valmont globally. With
our strategic initiatives in place throughout the company, we believe
we are well positioned to achieve record performance again in 2006.
both in Europe and China. We streamlined
and simplified our European organiza-
tional structure during 2004, and our
team there delivered much improved
results in 2005. In China we had our ninth
consecutive year of improved sales and
earnings. Our second manufacturing
plant in the south of China should be in
production by April of this year, ready to
serve an ever-growing need for support
structures in this important region.
In our Utility Support Structures
Segment, 2005 was the first full year
of integrated operations for the Valmont
steel utility pole business and Newmark
International’s pre-stressed spun concrete
and steel utility pole business. Revenues
grew significantly while operating
income nearly tripled. We now have the
industry’s most complete product line,
serving a utility market which presents
numerous opportunities for growth.
In our Irrigation Segment we were
faced with challenges worldwide. Crop
prices in general were not strong, and
combined with escalating energy prices,
put pressure on farm income. Our team
did a good job of managing through
this period of declining revenues while
preserving acceptable profitability levels.
Our irrigation business has always been
a cyclical business, and today it is a good
business in the down cycle and a great
business in the up cycle. Water conserva-
tion is a global issue that will not go away
and we continue to have great enthusiasm
for this business.
Last year I predicted that our Tubing
Segment would not be able to match
the record performance of 2004. I was
wrong! Their operating profit set a new
record as they continued to focus on
superior customer service in their
niche markets.
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
3
S
R
E
D
L
O
H
E
R
A
H
S
W
O
L
L
E
F
O
T
E
G
A
S
S
E
M
VISION
North America and driving leverage
among our international irrigation
and structures businesses.
While I am pleased with our 2005 results,
I believe we can continue to improve.
We are taking aggressive actions to drive
earnings improvement and growth across
all businesses. We are placing strategic
focus on three initiatives that we believe
will drive financial performance:
Pricing Initiative. Because pricing is a
key component in building revenue and
profitability, we are examining elements
of our pricing processes to ensure our
products and services are priced appro-
priately and commensurate with the
value they provide to our customers.
Our Coatings Segment delivered flat sales
compared to 2004, but with twice the
operating income as their mix of business
was much improved. The galvanizing
business showed new strength and
our anodizing subsidiary in California
returned to profitability.
We made some major changes in the
responsibilities of our senior operating
managers in 2005 to give them new
challenges. Tom Spears is now responsible
for our engineered support structures
business in the U.S. and Canada as well
as our coatings businesses. Earl Foust
oversees our steel and concrete pole
businesses serving the utility market
in the U.S. Len Adams has responsibility
for our U.S. irrigation business in addition
to managing the tubing business. We
also established a new International
Division, adding Victor Grizzle to our
senior management team to be respon-
sible for accelerating growth outside
4
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
VALMONT IS RECOGNIZED THROUGHOUT THE WORLD AS AN INDUSTRY LEADER IN ENGINEERED SUPPORT STRUCTURES AND
SERVICES FOR INFRASTRUCTURE, AND WATER MANAGEMENT FOR AGRICULTURE. WE GROW OUR BUSINESSES BY LEVERAGING OUR
EXISTING PRODUCTS, MARKETS AND PROCESSES. WE RECOGNIZE THAT OUR GROWTH WILL ONLY CREATE SHAREHOLDER VALUE IF, AT
THE SAME TIME, WE EXCEED OUR COST OF CAPITAL. ESSENTIAL TO OUR SUCCESS IS A COMPANY-WIDE COMMITMENT TO CUSTOMER
SERVICE AND INNOVATION, AND THE ABILITY TO BE THE BEST COST PRODUCER FOR ALL PRODUCTS AND SERVICES WE PROVIDE.
RECOGNIZING THAT OUR EMPLOYEES ARE THE CORNERSTONE OF OUR ACCOMPLISHMENTS, WE PRIDE OURSELVES ON BEING PEOPLE
OF PASSION AND INTEGRITY WHO EXCEL AND DELIVER RESULTS.
Lean Manufacturing. We have put a
renewed emphasis on this disciplined
approach to managing costs in our
operations and manufacturing plants
throughout the entire company. By apply-
ing lean manufacturing principles, we
should improve our cost competitiveness
while eliminating waste in our operations.
we are well positioned to achieve record
performance again in 2006. Valmont’s
success in creating value is dependent
upon our continued passion, integrity
and commitment to deliver results.
I look forward to report to you on our
progress and thank you for your support.
Sincerely,
Mogens C. Bay
Chairman and Chief Executive Officer
Employee Engagement. We firmly
believe Valmont’s success is directly
linked to employee engagement, and
we continue to make it a top priority.
In 2005, the Gallup organization
administered a second Q12 survey.
I am pleased to report that Valmont’s
overall score improved significantly.
I want to congratulate my fellow
employees around the world for their
accomplishments in 2005 and for
strengthening Valmont globally.
With our strategic initiatives in place
throughout the company, we believe
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
5
E
R
U
T
C
U
R
T
S
A
R
F
N
I
ENGINEERED SUPPORT STRUCTURES
Area lighting poles for parking lots and public areas. Sports lighting structures for arenas and
stadiums. Decorative lighting poles. Traffic and sign structures. Street and high-mast lighting
poles. Monopoles, towers and structures for cellular, PCS, broadcast, microwave and two-way
communications. Wireless communication components. Minimum visual impact structures.
Overhead sign structures.
VALMONT AT A GLANCE
6
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
VALMONT AT A GLANCE
UTILITY SUPPORT STRUCTURES
COATINGS FOR METAL PRODUCTS
Utility transmission and distribution poles.
Utility substation structures.
Galvanizing, anodizing, powder
coatings and integrated graphics.
E
R
U
T
L
U
C
I
R
G
A
IRRIGATION AND
WATER MANAGEMENT
Mechanized irrigation systems.
Wastewater consulting services.
TUBING
Custom-made tubing
used for agricultural and
industrial applications.
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
7
T
R
O
P
P
U
S
D
E
R
E
E
N
I
G
N
E
N
O
I
S
I
V
I
D
S
E
R
U
T
C
U
R
T
S
DIVERSIFICATION ON A GLOBAL SCALE
How do you successfully meet the growing demands of a global market for lighting and traffic,
wireless communication and sign structures? Diversify your products, your geographic locations
and your skills. At Valmont, we think of it as leveraging our strengths.
t
A row of decorative streetlights illumine the night for strollers along
the Champs-Élysées. An overhead tra�c sign guides travelers through
a Chicago turnpike. Streetlights in Shanghai make night travel safer
for drivers. In each instance, Valmont’s engineered support structures
are present, making life easier, safer, and improving the way we live.
Diversified Strengths. Around the
world, Valmont’s broad array of steel and
aluminum poles, specialty structures and
towers are standing tall . . . bringing light
and order to new and existing markets.
From area and decorative lighting, to
roadway and traffic structures, to wireless
communication towers and components,
Valmont’s engineered support structures
are designed to meet the diverse needs
of our customers worldwide.
Into the Wind. Valmont is also leading
the way into the future of wind energy.
With our innovative wind energy support
structure, we are preparing to meet the
demands of the renewable energy market.
Growing Demand. Moving forward into
the 21st century, the demand for infra-
structure will only increase, particularly
in developing countries. As a worldwide
leader in engineered support structures,
we are positioned to meet those needs
with 18 manufacturing facilities located
around the world. Our global engineering
and manufacturing capabilities affords
us the unique ability to leverage our skills,
technology and distribution channels to
consistently deliver products of superior
quality and value.
As the world’s infrastructure needs
increase, Valmont will continue to rise
to the challenge . . . making life safer, and
improving our lives, no matter where in
the world we live.
Above | Decorative poles, trolley and sports lighting
structures are among a wide array of various lighting
and traffic, wireless communication and sign structures
designed and engineered by Valmont.
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
9
t
Power lines. They run through countrysides, towns and cities
throughout the world. Mile after mile, they quietly deliver the
energy we need for daily life. Yet, we rarely give them a second
thought. And thanks to the steadfast support of Valmont’s quality
utility poles and substations, we don’t need to.
Power Duty. Everywhere, power
networks are expanding to meet our
growing energy needs. These networks
rely on Valmont’s utility support struc-
tures – substations, and transmission
and distribution poles – to support lines
that transmit as much as 765,000 volts
down to 220 volts of electricity into
homes, offices and other locations
to meet consumer demands.
Powerful Solutions. Because we leverage
our global engineering and manufactur-
ing capabilities, Valmont-Newmark is
able to offer the most comprehensive
selection of utility support structures
in the industry. From tubular steel poles,
to spun concrete and hybrid poles, our
utility structures are durable enough to
withstand harsh environments and the
most demanding weather conditions.
To ensure the utmost in safety standards,
and to meet the rigorous demands of
utility companies for structures that
provide reliable performance and
longer service lives at the best cost,
Valmont works diligently to remain at
the forefront of innovative design and
emerging technology.
Above | Valmont-Newmark’s comprehensive
selection of utility support structures offers utility
engineers a seamless blend of custom solutions for
diverse applications in the power delivery industry.
10
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
DILIGENCE ON A GLOBAL SCALE
How do you live up to increasing demands for quality power transmission infrastructure
products, delivered on time, at the best cost? Through constant diligence. Especially when
it comes to design and engineering, balancing capacity and leveraging knowledge of local
markets, no matter where they are.
T
R
O
P
P
U
S
Y
T
I
L
I
T
U
N
O
I
S
I
V
I
D
S
E
R
U
T
C
U
R
T
S
N
O
I
S
I
V
I
D
N
O
I
T
A
G
I
R
R
I
DISTRIBUTION ON A GLOBAL SCALE
How do you help feed a growing global population, even in remote regions where local conditions
make farming an unlikely endeavor? By leveraging capacity, resources and distribution channels
to bring water-conserving, mechanized irrigation technology to farmers around the world.
t
A global manufacturing network and a worldwide dealer network
allow Valmont to manufacture and deliver the most innovative, high
quality irrigation equipment in the world. The result? More e�cient
agriculture around the world . . . and continued resource conservation
for generations to come.
Reaching the World. Because Valmont
is a global producer of mechanized
irrigation equipment, our ability to help
feed the world and conserve resources
is far reaching. From the world’s arid
regions to the most fertile, Valley® center
pivot and linear irrigation equipment can
be found delivering precious water to the
crops that nourish our lives.
Conserving Our Resources. Thanks to
advanced technology and engineering,
Valmont’s Valley brand center pivot
irrigation equipment leads the industry.
Using less water, lower water pressure,
and less energy, Valley mechanized
irrigation products reduce costs and
improve yields by efficiently placing
water where it is needed, near the
root zone.
Looking Forward. In the future, the
need to grow more food with less
water will only intensify. Valmont is
ready for the challenge. As the most
innovative company in mechanized
irrigation, we are committed to the
success of our customers, to delivering
reliable, long-lasting products, and to
maintaining the high level of advanced
research and innovation that has helped
us reach the world with products that
improve life.
Above | Crop circles flourish even in the most arid
climates with Valmont’s Valley® brand mechanized
irrigation equipment.
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
13
t
When it comes to adding the perfect ½nishing touch to metal
products, Valmont leads the way. We are the largest custom galvanizer
in North America, but it doesn’t end there. Over the years, we have
built upon our strengths to expand the scope of our coatings services
to include anodizing and powder coating.
Battling the Elements. Water may be the
essence of life, but it is unforgiving when
it comes in contact with metal. The same
is true for salt, humidity and other harsh
environments. Yet, day after day, steel
and aluminum products are exposed
to corrosive elements that erode their
aesthetic beauty and service life.
Continuous Innovation. Since Valmont
began galvanizing products over 30
years ago, our coatings services have
significantly expanded. Our company-
wide commitment to continuous
innovation has led to the development
of quality processes for powder coating,
anodizing and embedded graphics.
At Valmont, we have made it our busi-
ness to protect steel and aluminum
products with surface finishes that
beautify and last.
From large steel poles and expansive
bridges, to golf clubs and flashlights,
Valmont’s surface finishes are hard
at work battling the elements, and
protecting the products we use for life.
Above | The combined capabilities of our
state-of-the-art plants provide Valmont Coatings
with the capacity to quickly and efficiently galvanize
products of almost any size.
14
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
DURABILITY ON A GLOBAL SCALE
How do you balance the need for aesthetically pleasing steel and aluminum products with
durability? Leverage company-wide quality standards to engineer products and processes for
the duration. Through continuous innovation, Valmont has developed quality processes to provide
protective coatings that last, year after year.
N
O
I
S
I
V
I
D
S
G
N
I
T
A
O
C
N
O
I
S
I
V
I
D
G
N
I
B
U
T
DETAILS ON A GLOBAL SCALE
How do you provide high quality, custom tubing products that fulfill your customer’s specific
requirements for very demanding applications? The answer is in the details. By leveraging our
engineering and manufacturing capabilities, Valmont is able to produce tubing in custom
shapes, sizes and chemistries made to customer specifications . . . precisely.
t
You can’t always see it, but Valmont’s custom tubing is all around us.
Though its presence is unassuming, it is essential. It functions in
various capacities, from a pneumatic tube system in a hospital,
to a motorcycle mu≥er, to the fence in your backyard. It comes
in all shapes, sizes and chemistries, made to order, by Valmont.
Niche Market. Customized tubing
is a specialized endeavor at Valmont.
With a wide range of tubular steel
products, we serve niche markets that
rely on us to design and engineer tubing
products for specialized applications.
Whether they are sold into distribution
or to original equipment manufacturers,
Valmont’s tubing products are consis-
tently on the cutting edge of quality,
down to the finest detail.
Tubing Technology. While we have
built our success on providing excep-
tional quality products for specialized
applications, we are continuously seeking
opportunities to serve customers in new
markets. Through ongoing research, we
will continue to develop new products
and processes to meet evolving customer
needs, no matter how they take shape.
Above | Valmont produces specialized tubing
in custom shapes, sizes and chemistries designed
to meet precise specifications.
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
17
E
C
N
E
S
E
R
P
L
A
B
O
L
G
DEDICATION ON A GLOBAL SCALE
Throughout the world, our dedicated employees strive to make a difference.
A difference at work, at home and in their communities.
18
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
Albany, Oregon, USA
Cascade Earth Sciences
Barstow, California, USA
Concrete Poles
Bartow, Florida, USA
Concrete Poles
Bay Minette, Alabama, USA
Concrete Poles
Bellville, Texas, USA
Concrete Poles
Brenham, Texas, USA
Steel Poles
Chicago, Illinois, USA
Galvanizing
Claxton, Georgia, USA
Concrete Poles
Commerce City, Colorado, USA
Composite Poles
El Dorado, Kansas, USA
Steel Poles
Elkhart, Indiana, USA
Steel And Aluminum Poles
Farmington, Minnesota, USA
Aluminum Poles
Jasper, Tennessee, USA
Steel Poles
Lindon, Utah, USA
Galvanizing and Powder Coating
Long Beach, California, USA
Galvanizing
Los Angeles, California, USA
Anodizing and Powder Coating
Mansfield, Texas, USA
Steel Poles
McCook, Nebraska, USA
Irrigation Equipment
Minneapolis, Minnesota, USA
Anodizing, Powder Coating
and E-coating
Omaha, Nebraska, USA
Corporate Headquarters
Plymouth, Indiana, USA
Wireless Communication
Structures and Components
and Specialty Structures
Salem, Oregon, USA
Wireless Communication
Structures and Components
and Specialty Structures
Selbyville, Delaware, USA
Specialty Structures
Sioux City, Iowa, USA
Galvanizing
Tualatin, Oregon, USA
Galvanizing
Tulsa, Oklahoma, USA
Steel Poles and Galvanizing
Tuscaloosa, Alabama, USA
Concrete Poles
Valley, Nebraska, USA
Irrigation Equipment, Steel Poles,
Tubing and Galvanizing
Waverly, Nebraska, USA
Steel Tubing
West Point, Nebraska, USA
Galvanizing
Uberaba, Brazil
Irrigation Equipment
St. Julie, Quebec, Canada
Aluminum Poles
Guangzhou, China1
Steel Poles
Shanghai, China
Steel Poles
Charmeil, France
Steel Poles
Creuzier-le-neuf, France
Industrial Covers and Conveyers
Rive-de-gier, France
Aluminum Poles
Gelsenkirchen, Germany
Steel Poles
Monterrey, Mexico
Steel Poles
Berrechid, Morocco
Steel Poles
Maarheeze, The Netherlands
Steel Poles
Siedlce, Poland
Steel Poles
Johannesburg, South Africa
Irrigation Equipment
Madrid, Spain
Irrigation Equipment
Chesterfield, United Kingdom
Steel Poles
Jebel Ali, U.A.E.
Irrigation Equipment
1 Scheduled to open spring 2006.
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
19
P
I
H
S
R
E
D
A
E
L
BOARD OF DIRECTORS
Mogens C. Bay
Chairman and
Chief Executive Officer
Valmont Industries, Inc.
Director Since 1993
Thomas F. Madison
Lead Director
President
MLM Partners
Director Since 1987
Glen Barton
Retired Chairman and
Chief Executive Officer
Caterpillar, Inc.
Director Since 2004
Kaj den Daas
Executive Vice President
Philips Lighting B.V.
Chief Operating Officer
Business Group Lamps
Director Since 2004
John E. Jones
Retired Chairman,
President and
Chief Executive Officer
CBI Industries, Inc.
Director Since 1993
Dr. Stephen R. Lewis, Jr.
President Emeritus and
Professor of Economics
Carleton College
Director Since 2002
Daniel P. Neary
Chairman and
Chief Executive Officer
Mutual of Omaha
Director Since 2005
Charles D. Peebler, Jr.
Retired Chairman Emeritus
True North Communications, Inc.
Director Since 1999
Walter Scott, Jr.
Chairman
Level 3 Communications, Inc.
Director Since 1981
20
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
From left to right | Glen Barton,
John E. Jones, Daniel P. Neary,
Walter Scott, Jr., Kaj den Daas,
Mogens C. Bay, Dr. Stephen R. Lewis, Jr.,
Kenneth E. Stinson, Charles D. Peebler, Jr.
and Thomas F. Madison.
Kenneth E. Stinson
Chairman
Peter Kiewit Sons’, Inc.
Director Since 1996
Audit Committee
Walter Scott, Jr., Chairman
John E. Jones
Daniel P. Neary
Charles D. Peebler, Jr.
Compensation Committee
Thomas F. Madison, Chairman
Glen A. Barton
Dr. Stephen R. Lewis, Jr.
Charles D. Peebler, Jr.
Governance and
Nominating Committee
Thomas F. Madison, Chairman
Kaj den Daas
Dr. Stephen R. Lewis, Jr.
5
0
0
2
FINANCIAL AND CORPORATE INFORMATION
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
21
SELECTED 11-YEAR FINANCIAL SUMMARY
$
$
$
$
$
$
(Dollars in thousands, except per share amounts)
OPERATING DATA
Net sales
Operating income
Net earnings
Depreciation and amortization
Capital expenditures
Effective tax rate
PER SHARE DATA 1
Earnings:
Basic
Diluted
Cash dividends
INVESTED CAPITAL
Total assets
Less: accounts payable
Less: accrued expenses
Less: dividends payable
Total invested capital
FINANCIAL POSITION
Working capital
Property, plant and equipment, net
Total assets
Long-term debt, including current installments
Shareholders’ equity
KEY FINANCIAL MEASURES 2
Return on beginning shareholders’ equity
Return on invested capital
Long-term debt as a percent of invested capital
YEAR END DATA
Shares outstanding (000)1
Approximate number of shareholders
Number of employees
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1,108,100
82,863
39,079
39,807
35,119
37.8%
1,031,475
70,112
26,881
38,644
17,182
36.0%
837,625
54,623
25,487
34,597
17,679
854,898
70,289
33,629
33,942
13,942
36.3%
36.5%
36.9%
36.3%
36.9%
36.5%
36.3%
35.6%
35.7%
1.61
1.54
0.335
802,042
(90,674)
(67,869)
(2,107)
641,392
229,161
194,676
802,042
232,340
328,675
13.3%
7.7%
36.2%
24,765
5,700
5,336
1.13
1.10
0.320
843,351
(77,222)
(66,506)
(1,932)
697,691
277,444
205,655
843,351
322,775
294,655
10.1%
7.6%
46.3%
24,162
5,600
5,542
1.07
1.05
0.315
613,022
(71,481)
(55,856)
(1,921)
483,764
169,568
190,103
613,022
149,662
265,494
10.5%
7.4%
30.9%
23,825
5,400
5,074
1.40
1.37
0.290
593,649
(70,276)
(69,828)
(1,792)
451,753
154,112
193,175
593,649
166,391
242,020
14.9%
9.7%
36.8%
23,883
5,500
5,234
872,380
846,129
639,869
630,858
622,506
644,531
544,642
65,021
26,693
36,324
25,652
1.10
1.09
0.260
599,433
(67,563)
(58,042)
(1,598)
472,230
145,550
209,580
599,433
198,008
225,811
13.9%
8.6%
41.9%
24,477
5,500
5,342
67,256
30,400
30,270
46,456
1.31
1.28
0.260
600,135
(63,005)
(56,005)
(1,516)
479,609
145,575
208,272
600,135
205,472
191,911
17.8%
10.7%
42.8%
23,320
5,500
5,503
50,176
26,367
21,949
37,783
1.09
1.08
0.260
419,335
(46,753)
(49,962)
(1,524)
321,096
98,588
173,920
419,335
108,622
170,488
15.0%
9.9%
33.8%
23,354
5,500
3,948
47,752
27,636
19,843
29,667
1.04
1.02
0.250
406,957
(45,996)
(41,646)
(1,607)
317,708
99,466
157,447
406,957
96,218
175,913
13.3%
10.3%
30.3%
24,721
5,500
3,869
61,990
37,544
16,437
39,115
1.36
1.33
0.220
368,052
(48,717)
(47,380)
(1,555)
270,400
94,416
140,834
368,052
28,060
207,102
21.4%
15.4%
10.4%
27,641
5,400
3,751
36,644
21,248
14,832
35,559
0.78
0.76
0.190
341,648
(43,699)
(52,678)
(1,366)
243,905
81,403
120,579
341,648
29,573
175,231
13.3%
10.3%
12.1%
27,330
4,400
4,868
41,831
24,759
12,361
34,772
0.92
0.90
0.150
308,710
(46,900)
(45,475)
(1,017)
215,318
80,993
113,532
308,710
36,687
159,256
18.0%
13.0%
17.0%
27,120
3,900
4,166
1
2
Per share amounts and number of shares reflect the two-for-one stock split in 1997.
Operating Income after tax is calculated as ((Operating income-(Operating income multiplied by the Effective tax rate)).
Return on beginning shareholders’ equity is calculated as Net earnings divided by the prior year’s ending Shareholders’ equity.
Average invested capital is calculated as (prior year Invested capital plus current year Invested capital) divided by 2.
Return on invested capital is calculated as Operating income after-tax divided by the average invested capital.
Long-term debt as a percent of invested capital is calculated as Long-term debt, including current installments divided by Total invested capital.
22
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
(Dollars in thousands, except per share amounts)
OPERATING DATA
Net sales
Operating income
Net earnings
Depreciation and amortization
Capital expenditures
Effective tax rate
PER SHARE DATA 1
Earnings:
Basic
Diluted
Cash dividends
INVESTED CAPITAL
Total assets
Less: accounts payable
Less: accrued expenses
Less: dividends payable
Total invested capital
FINANCIAL POSITION
Working capital
Property, plant and equipment, net
Total assets
Long-term debt, including current installments
Shareholders’ equity
KEY FINANCIAL MEASURES 2
Return on beginning shareholders’ equity
Return on invested capital
Long-term debt as a percent of invested capital
YEAR END DATA
Shares outstanding (000)1
Approximate number of shareholders
Number of employees
82,863
39,079
39,807
35,119
1.61
1.54
0.335
$
802,042
(90,674)
(67,869)
(2,107)
$
641,392
$
$
$
229,161
194,676
802,042
232,340
328,675
13.3%
7.7%
36.2%
24,765
5,700
5,336
70,112
26,881
38,644
17,182
1.13
1.10
0.320
843,351
(77,222)
(66,506)
(1,932)
697,691
277,444
205,655
843,351
322,775
294,655
10.1%
7.6%
46.3%
24,162
5,600
5,542
54,623
25,487
34,597
17,679
1.07
1.05
0.315
613,022
(71,481)
(55,856)
(1,921)
483,764
169,568
190,103
613,022
149,662
265,494
10.5%
7.4%
30.9%
23,825
5,400
5,074
70,289
33,629
33,942
13,942
1.40
1.37
0.290
593,649
(70,276)
(69,828)
(1,792)
451,753
154,112
193,175
593,649
166,391
242,020
14.9%
9.7%
36.8%
23,883
5,500
5,234
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
$
1,108,100
1,031,475
837,625
854,898
872,380
65,021
26,693
36,324
25,652
846,129
67,256
30,400
30,270
46,456
639,869
50,176
26,367
21,949
37,783
630,858
47,752
27,636
19,843
29,667
622,506
61,990
37,544
16,437
39,115
644,531
36,644
21,248
14,832
35,559
544,642
41,831
24,759
12,361
34,772
37.8%
36.0%
36.3%
36.5%
36.9%
36.3%
36.9%
36.5%
36.3%
35.6%
35.7%
1.10
1.09
0.260
599,433
(67,563)
(58,042)
(1,598)
472,230
145,550
209,580
599,433
198,008
225,811
13.9%
8.6%
41.9%
24,477
5,500
5,342
1.31
1.28
0.260
600,135
(63,005)
(56,005)
(1,516)
479,609
145,575
208,272
600,135
205,472
191,911
17.8%
10.7%
42.8%
23,320
5,500
5,503
1.09
1.08
0.260
419,335
(46,753)
(49,962)
(1,524)
321,096
98,588
173,920
419,335
108,622
170,488
15.0%
9.9%
33.8%
23,354
5,500
3,948
1.04
1.02
0.250
406,957
(45,996)
(41,646)
(1,607)
317,708
99,466
157,447
406,957
96,218
175,913
13.3%
10.3%
30.3%
24,721
5,500
3,869
1.36
1.33
0.220
368,052
(48,717)
(47,380)
(1,555)
270,400
94,416
140,834
368,052
28,060
207,102
21.4%
15.4%
10.4%
27,641
5,400
3,751
0.78
0.76
0.190
341,648
(43,699)
(52,678)
(1,366)
243,905
81,403
120,579
341,648
29,573
175,231
13.3%
10.3%
12.1%
27,330
4,400
4,868
0.92
0.90
0.150
308,710
(46,900)
(45,475)
(1,017)
215,318
80,993
113,532
308,710
36,687
159,256
18.0%
13.0%
17.0%
27,120
3,900
4,166
The selected consolidated financial data set forth in the above table have been derived from the Company’s consolidated financial
statements. This data should be read in conjunction with, and are qualified by reference to, “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K, and the Company’s audited consolidated
financial statements, including the notes thereto, and the other financial information included elsewhere in the Annual Report on Form
10-K filed with the Securities and Exchange Commission.
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
23
SEGMENT SUMMARY
(Dollars in millions, except per share amounts)
CONSOLIDATED
Net sales
Gross profit
as a percent of sales
SG&A expense
as a percent of sales
Operating income
as a percent of sales
Net interest expense
Effective tax rate
Net earnings
Earnings per share
ENGINEERED SUPPORT STRUCTURES SEGMENT
Net sales
Gross profit
SG&A expense
Operating income
UTILITY SUPPORT STRUCTURES SEGMENT
Net sales
Gross profit
SG&A expense
Operating income(loss)
COATINGS SEGMENT
Net sales
Gross profit
SG&A expense
Operating income
IRRIGATION SEGMENT
Net sales
Gross profit
SG&A expense
Operating income
TUBING SEGMENT
Net sales
Gross profit
SG&A expense
Operating income
OTHER
Net sales
Gross profit
SG&A expense
Operating loss
NET CORPORATE EXPENSE
Gross profit
SG&A expense
Operating loss
MN – not meaningful
24
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
2005
2004
Change 2005-2004
2003
Change 2004-2003
$
$
$
1,108.1
278.3
25.1 %
195.4
17.6 %
82.9
7.5 %
17.7
37.8 %
39.1
1.54
470.7
127.2
82.6
44.6
218.9
48.6
27.9
20.7
72.1
17.6
9.2
8.4
260.4
61.0
36.2
24.8
71.9
20.6
6.0
14.6
14.1
4.3
8.4
(4.1)
(1.0)
25.1
(26.1)
1,031.5
245.9
23.8 %
175.8
17.0 %
70.1
6.8 %
14.7
36.0 %
26.9
1.10
402.0
102.8
71.2
31.6
175.3
32.1
25.0
7.1
73.5
14.0
9.8
4.2
297.8
73.8
38.3
35.5
68.7
20.3
6.9
13.4
14.2
4.6
7.4
(2.8)
(1.6)
17.3
(18.9)
7.4 %
13.2 %
11.1 %
18.3 %
20.4 %
45.4 %
40.0 %
17.1 %
23.7 %
16.0 %
41.1 %
24.9 %
51.4 %
11.6 %
191.5 %
(1.9) %
25.7 %
(6.1) %
100.0 %
(12.6) %
(17.3) %
(5.5) %
(30.1) %
4.7 %
1.5 %
(13.0) %
9.0 %
(0.7) %
(6.5) %
13.5 %
(46.4) %
37.5 %
45.1 %
(38.1) %
837.6
208.0
24.8 %
153.4
18.3 %
54.6
6.5 %
8.8
36.3 %
25.5
1.05
330.0
94.6
68.4
26.2
76.8
8.8
14.3
(5.5)
91.1
16.7
9.9
6.8
279.9
71.8
37.2
34.6
44.8
11.3
4.8
6.5
14.9
5.2
7.3
(2.1)
(0.4)
11.5
(11.9)
23.1 %
18.2 %
14.6 %
28.4 %
67.0 %
5.5 %
4.8 %
21.8 %
8.7 %
4.1 %
20.6 %
128.3 %
NM
74.8 %
NM
(19.3) %
(16.2) %
(1.0) %
(38.2) %
6.4 %
2.8 %
3.0 %
2.6 %
53.3 %
79.6 %
43.8 %
106.2 %
(4.7) %
(11.5) %
1.4 %
(33.3) %
NM
50.4 %
(58.8) %
(Dollars in millions, except per share amounts)
2005
2004
Change 2005-2004
2003
Change 2004-2003
ENGINEERED SUPPORT STRUCTURES SEGMENT
UTILITY SUPPORT STRUCTURES SEGMENT
CONSOLIDATED
Net sales
Gross profit
as a percent of sales
SG&A expense
as a percent of sales
Operating income
as a percent of sales
Net interest expense
Effective tax rate
Net earnings
Earnings per share
Net sales
Gross profit
SG&A expense
Operating income
Net sales
Gross profit
SG&A expense
Operating income(loss)
COATINGS SEGMENT
Net sales
Gross profit
SG&A expense
Operating income
IRRIGATION SEGMENT
Net sales
Gross profit
SG&A expense
Operating income
TUBING SEGMENT
Net sales
Gross profit
SG&A expense
Operating income
OTHER
NET CORPORATE EXPENSE
Net sales
Gross profit
SG&A expense
Operating loss
Gross profit
SG&A expense
Operating loss
MN – not meaningful
$
1,108.1
278.3
25.1 %
195.4
17.6 %
82.9
7.5 %
17.7
37.8 %
39.1
1.54
$
1,031.5
245.9
23.8 %
175.8
17.0 %
70.1
6.8 %
14.7
36.0 %
26.9
1.10
470.7
127.2
82.6
44.6
218.9
48.6
27.9
20.7
72.1
17.6
9.2
8.4
260.4
61.0
36.2
24.8
71.9
20.6
6.0
14.6
14.1
4.3
8.4
(4.1)
(1.0)
25.1
(26.1)
402.0
102.8
71.2
31.6
175.3
32.1
25.0
7.1
73.5
14.0
9.8
4.2
297.8
73.8
38.3
35.5
68.7
20.3
6.9
13.4
14.2
4.6
7.4
(2.8)
(1.6)
17.3
(18.9)
7.4 %
13.2 %
11.1 %
18.3 %
20.4 %
45.4 %
40.0 %
17.1 %
23.7 %
16.0 %
41.1 %
24.9 %
51.4 %
11.6 %
191.5 %
(1.9) %
25.7 %
(6.1) %
100.0 %
(12.6) %
(17.3) %
(5.5) %
(30.1) %
4.7 %
1.5 %
(13.0) %
9.0 %
(0.7) %
(6.5) %
13.5 %
(46.4) %
37.5 %
45.1 %
(38.1) %
$
837.6
208.0
24.8 %
153.4
18.3 %
54.6
6.5 %
8.8
36.3 %
25.5
1.05
330.0
94.6
68.4
26.2
76.8
8.8
14.3
(5.5)
91.1
16.7
9.9
6.8
279.9
71.8
37.2
34.6
44.8
11.3
4.8
6.5
14.9
5.2
7.3
(2.1)
(0.4)
11.5
(11.9)
23.1 %
18.2 %
14.6 %
28.4 %
67.0 %
5.5 %
4.8 %
21.8 %
8.7 %
4.1 %
20.6 %
128.3 %
NM
74.8 %
NM
(19.3) %
(16.2) %
(1.0) %
(38.2) %
6.4 %
2.8 %
3.0 %
2.6 %
53.3 %
79.6 %
43.8 %
106.2 %
(4.7) %
(11.5) %
1.4 %
(33.3) %
NM
50.4 %
(58.8) %
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
25
CORPORATE AND BUSINESS UNIT OFFICERS
COR PORATE OFFI C ERS
Mogens C. Bay
Chairman and
Chief Executive Officer
Terry J. McClain
Senior Vice President and
Chief Financial Officer
E. Robert Meaney
Senior Vice President
Ann F. Ashford
Vice President
Human Resources
Steven G. Branscombe
Vice President
Information Technology
Mark C. Jaksich
Vice President
Corporate Controller
Walter P. Pasko
Vice President
Procurement
P. Thomas Pogge
Vice President
General Counsel
and Secretary
Mark E. Treinen
Vice President
Corporate Development
and Treasurer
I N FRASTRUCTU R E
Thomas D. Spears
Group President
I R R IGATION AN D TU B I NG
Leonard M. Adams
Group President
North American Structures
North American Irrigation
and Coatings
Richard S. Cornish
Vice President
Operations
Coatings
Doug Kochenderfer
Vice President and
General Manager
Specialty Structures
Thomas F. Sanderson
Vice President
Sales and Marketing
and Tubing
Duane Bier
Vice President
Operations
Irrigation
James L. Brown
Vice President
North American Sales
Irrigation
I NTER NATIONAL
Victor D. Grizzle
Group President
North American Structures
Valmont International
Thomas J. Sutko
Vice President
Operations
North American Structures
UTI L ITY SU PPO RT
STRUCTU R E S DIV ISION
Earl Foust
President
Wesley J. Oliphant
Vice President
Steel Business Units
Douglas C. Sherman
Vice President
Market Development
Michael Banat
Vice President
International Structure
Sales and Marketing
Klavs Guldager
Vice President
Operations
Bernhard L. Kiep
Vice President and
General Manager
International Irrigation
Stéphane Devulder
General Manager
Southern Europe
Huang Xiao Yong
General Manager
China
26
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
CORPORATE AND STOCK INFORMATION
COR PO RATE H EADQ UA RTERS
SHA R EH OLDE R AN D I NVE STOR R E L ATIONS
Valmont Industries, Inc.
One Valmont Plaza
Valmont’s common stock trades on the
New York Stock Exchange (NYSE) under
Omaha, Nebraska 68154-5215 USA
the symbol VMI.
Tel
Fax
1-402-963-1000
1-402-963-1198
valmont.com
I N DE P E N DE NT P U B L IC ACCO U NTANTS
Deloitte & Touche LLP
Omaha, Nebraska USA
LE GAL COU N S EL
McGrath North Mullin & Kratz, PC LLO
Omaha, Nebraska USA
STO C K TRAN S FE R AG ENT AN D R EG ISTRA R
Address Shareholder Inquiries to:
The Bank of New York
Shareholder Relations
Department, 11 E
P.O. Box 11258
Church Street Station
New York, NY 10285 USA
1-866-886-9962
Send Certificates for Transfer
and Address Changes to:
The Bank of New York
Receive and Deliver Department
P.O. Box 11002
Church Street Station
New York, NY 10286 USA
AN N UAL M E ETI N G
The annual meeting of Valmont’s
shareholders will be held at 2:00 p.m.
on Monday, April 24, 2006, at the Joslyn
Art Museum in Omaha, Nebraska USA.
We make available, free of charge through our
Internet Web site at www.valmont.com, our
annual report on Form 10-K, quarterly reports
on Form 10-Q, current reports on Form 8-K,
and amendments to those reports filed or
furnished pursuant to Section 13(a) or 15(d)
of the Securities Exchange Act of 1934, as soon
as reasonably practicable after such material
is electronically filed with or furnished to the
Securities and Exchange Commission.
We have also posted on our Web site our (1)
Corporate Governance Principles, (2) charter
for the Audit Committee, Compensation
Committee, and Governance and Nominating
Committee of the Board, (3) Code of
Business Conduct, and (4) Code of Ethics
for Senior Officers applicable to the Chief
Executive Officer, Chief Financial Officer and
Controller. Valmont shareholders may also
obtain copies of these items at no charge
by writing to:
Jeffrey S. Laudin
Investor Relations Department
Valmont Industries, Inc.
One Valmont Plaza
Omaha, NE 68154 USA
Tel
Fax
1-402-963-1000
1-402-963-1198
VA L M O N T I N D U S T R I E S , I N C . | AN N U A L RE P O R T 2005
27
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on assumptions that management has made in light
of experience in the industries in which the Company operates, as well as
management’s perceptions of historical trends, current conditions, expected
future developments and other factors believed to be appropriate under
the circumstances. These statements are not guarantees of performance
or results. They involve risks, uncertainties (some of which are beyond the
Company’s control) and assumptions. Management believes that these
forward-looking statements are based on reasonable assumptions. Many
factors could affect the Company’s actual financial results and cause them
to differ materially from those anticipated in the forward-looking state-
ments. These factors include, among other things, risk factors described
from time to time in the Company’s reports to the Securities and Exchange
Commission, as well as future economic and market circumstances,
industry conditions, company performance and financial results, operating
efficiencies, availability and price of raw materials, availability and market
acceptance of new products, product pricing, domestic and international
competitive environments, and actions and policy changes of domestic
and foreign governments.The Company cautions that any forward-looking
statements included in this report are made as of the date of this report.
VALMONT INDUSTRIES, INC.
ONE VALMONT PLAZA
OMAHA, NEBRASKA 68154-5215 USA
402 .963.1000
VALMONT.COM