Valmont Industries, Inc. Q1 2008 Earnings Call Transcript

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2008-04-17 07:19:09.0

Tags: Valmont Industries Inc.

Question-and-Answer Session

[Operator Instructions]. Your first question comes from the line of Jon Braatz with Kansas City Capital.

Jonathan Braatz - Kansas City Capital

Good morning, Terry.

Terry J. McClain - Senior Vice President and Chief Financial Officer

Good morning, Jon.

Jonathan Braatz - Kansas City Capital

Canwe get a little bit more on the revenue. Revenues were up 24%, and of course, there was some acquisition revenue in there, and by my guess, may be internal revenue or quarter organic revenue was up about 17%, 18%. But what can you tell us about the impact on price increases versus volume increases on that? Let's say I'm correct at about that 17%, 18% organic growth rate.

Terry J. McClain - Senior Vice President and Chief Financial Officer

Well, the bulk of the increase is organic growth, Jon.

Jonathan Braatz - Kansas City Capital

Volume growth.

Terry J. McClain - Senior Vice President and Chief Financial Officer

Volume related.

Jonathan Braatz - Kansas City Capital

Okay.

Terry J. McClain - Senior Vice President and Chief Financial Officer

Yes.

Jonathan Braatz - Kansas City Capital

Okay. But if that's going to change a little bit going forward?

Terry J. McClain - Senior Vice President and Chief Financial Officer

Well, at this point, I think somewhat depends on what happens to steel prices in terms of pricing changes. But, I would say it's going to continue forward with volume as we see it right now.

Jonathan Braatz - Kansas City Capital

Okay, okay. And I was looking at the couple of earning releases, other earning releases today, and sort of the common thread is how we are going to deal with these steel prices. At this moment, given what you see, do you envision any issues with regards to availability?

Terry J. McClain - Senior Vice President and Chief Financial Officer

We haven't seen availability issues to date. There is concern that is the steel industry moves around with the pricing and some of their... particularly issues related to mills been down, and some of the raw material availability that they have for input into their products. There is a little concern about availability. Right now, I wouldn't say it's a high concern, but there is a nervousness.

Jonathan Braatz - Kansas City Capital

Okay, okay. One... go ahead.

Terry J. McClain - Senior Vice President and Chief Financial Officer

Go ahead... while you have seen that in some of the releases from the steel companies where they have talked about availability of their raw materials.

 

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