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Valmont Unit to Distribute Trimble Irrigation Solution
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Valmont Industries Inc. (VMI - Free Report) announced that Valley Irrigation, a division of Valmont, will become the exclusive OEM distributor of Trimble’s (TRMB - Free Report) Irrigate-IQ precision irrigation solution. Trimble is a premier provider of precision agriculture solutions.
The solution will be available for Valley Corner Sprinkler Sequencing and Variable Rate Irrigation (VRI) products through the global Valley dealer network and will optimize water application for center pivot irrigation systems.
In order to maximize yield and maintain the health of plants it is essential for the crop to receive uniform and accurate water supply throughout the year. The union of two recognized leaders, Valley Irrigation and Trimble, will provide farmers with an advanced control, GPS-guided, individual nozzle irrigation solution.
Valley is known for superior irrigation technology and has an extensive global customer base. This agreement is expected to strengthen its position as the technology leader in the global irrigation market. Also, it will provide Valley with the opportunity to be the only pivot manufacturer to provide Trimble's Irrigate-IQ solution to its channel. Products are expected to be available globally prior the beginning of the second quarter of 2017.
Valmont has outperformed the Zacks categorized Steel-Pipes and Tubes industry over a year. While the company's shares gained 4.12% in this period, the industry saw a decline of 9.5%.
Valmont is expected to benefit from its restructuring actions mostly in the infrastructure business. The restructuring allows Valmont to not only consolidate its operations but also keep up its customer service, thus maintaining its position in the market. These actions are expected to improve the company’s overall cost structure, thereby supporting its earnings. In 2016, Valmont benefited from $22 million of cost savings from its restructuring actions.
Valmont is pursuing an aggressive acquisition strategy to boost growth. The acquisition of leading Northern European engineered steel products maker, DS SM A/S (rechristened Valmont SM A/S) has allowed Valmont to cater a wide range of industries including wind energy, oil and gas exploration and power transmission. Moreover, the acquisition of a majority stake in South Dakota-based AgSense strengthened Valmont’s portfolio in remote monitoring and control technology for agriculture.
However, Valmont faces persistent challenges in its irrigation business due to weak commodity pricing. Moreover, its utility business remains affected by absence of larger projects. Limited growth in infrastructure investment in Europe is also affecting the company’s Engineered Support Structures unit.
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Valmont Unit to Distribute Trimble Irrigation Solution
Valmont Industries Inc. (VMI - Free Report) announced that Valley Irrigation, a division of Valmont, will become the exclusive OEM distributor of Trimble’s (TRMB - Free Report) Irrigate-IQ precision irrigation solution. Trimble is a premier provider of precision agriculture solutions.
The solution will be available for Valley Corner Sprinkler Sequencing and Variable Rate Irrigation (VRI) products through the global Valley dealer network and will optimize water application for center pivot irrigation systems.
In order to maximize yield and maintain the health of plants it is essential for the crop to receive uniform and accurate water supply throughout the year. The union of two recognized leaders, Valley Irrigation and Trimble, will provide farmers with an advanced control, GPS-guided, individual nozzle irrigation solution.
Valley is known for superior irrigation technology and has an extensive global customer base. This agreement is expected to strengthen its position as the technology leader in the global irrigation market. Also, it will provide Valley with the opportunity to be the only pivot manufacturer to provide Trimble's Irrigate-IQ solution to its channel. Products are expected to be available globally prior the beginning of the second quarter of 2017.
Valmont has outperformed the Zacks categorized Steel-Pipes and Tubes industry over a year. While the company's shares gained 4.12% in this period, the industry saw a decline of 9.5%.
Valmont is expected to benefit from its restructuring actions mostly in the infrastructure business. The restructuring allows Valmont to not only consolidate its operations but also keep up its customer service, thus maintaining its position in the market. These actions are expected to improve the company’s overall cost structure, thereby supporting its earnings. In 2016, Valmont benefited from $22 million of cost savings from its restructuring actions.
Valmont is pursuing an aggressive acquisition strategy to boost growth. The acquisition of leading Northern European engineered steel products maker, DS SM A/S (rechristened Valmont SM A/S) has allowed Valmont to cater a wide range of industries including wind energy, oil and gas exploration and power transmission. Moreover, the acquisition of a majority stake in South Dakota-based AgSense strengthened Valmont’s portfolio in remote monitoring and control technology for agriculture.
However, Valmont faces persistent challenges in its irrigation business due to weak commodity pricing. Moreover, its utility business remains affected by absence of larger projects. Limited growth in infrastructure investment in Europe is also affecting the company’s Engineered Support Structures unit.
Valmont Industries, Inc. Price and Consensus
Valmont Industries, Inc. Price and Consensus | Valmont Industries, Inc. Quote
Zacks Rank & Key Picks
Valmont currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the industrial products space include Actuant Corporation and EnerSys (ENS - Free Report) , both of which hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Actuant has expected long-term growth of 12%.
EnerSys has expected long-term growth of 9.5%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>