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Valmont Announces Record Fourth Quarter, and Fiscal Year 2010 Results

OMAHA, Neb. Feb. 17, 2011 VMI $598.7 million $398.6 million $34.9 million $1.32 $30.0 million $1.14

$1.976 billion $1.787 billion $94.4 million $3.57 May 12, 2010 $150.6 million $5.73

May 12, 2010

Fourth Quarter Review:

Mogens C. Bay

"Sales in the Engineered Infrastructure Products Segment were higher due to the inclusion of the Delta businesses. The North American transportation market was weaker and a decline in project orders led to lower sales in international markets. In the Irrigation Segment, global sales were higher benefitting from rising farm income. Coatings Segment sales rose as a result of the addition of Delta and stronger demand from industrial and agricultural markets.

"Positive operating income comparisons were due largely to the contribution of the Delta businesses, and improved performance in the Irrigation and Coatings segments which more than offset a decline in profitability in the Utility Support Structures Segment."

Fourth Quarter Segment Review:

Engineered Infrastructure Products Segment (35% of 4th Quarter Sales)

Lighting, traffic and highway safety products, wireless communication structures and components, and industrial gratings and access systems worldwide.

$210.8 million $55.2 million North America

China

$17.9 million $5.8 million $2.0 million

Utility Support Structures Segment (21% of 4th Quarter Sales)

Steel and concrete structures for the global electric utility industry.

$128.5 million North America

India

$15.8 million North America

Irrigation Segment (22% of 4th Quarter Sales)

Center pivot and linear move mechanized irrigation equipment and parts for agriculture in global markets.

$134.3 million North America

$19.4 million

Coatings Segment (13% of 4th Quarter Sales)

Hot-dip galvanizing, and other coatings to protect against corrosion of steel and aluminum in global markets.

$76.5 million $27.2 million $42.0 million

$14.3 million $6.0 million

2010 Review:

"Typically Valmont’s results trend with the later stages of economic cycles. We were more negatively impacted by the global recession in 2010 than we were in 2009," said Mr. Bay. "As a result, for the first time in a number of years Valmont did not have a record year.

"The acquisition of Delta was a significant milestone for Valmont, bringing new platforms for growth and increasing our international revenue mix.

"Turning to full-year segment results, comparisons in the Utility Support Structures Segment contrasted sharply with 2009’s exceptional results. A substantial contraction in transmission structure orders led to overcapacity in the industry. As industry participants struggled to utilize capacity, highly competitive pricing pressure resulted. Despite the substantial decline in volumes, operating profits in this segment remained at double digit levels for the year.

North America North America Europe

"Irrigation Segment results were driven by more favorable market conditions and operational excellence. International markets were particularly strong during the second half of the year as prospects for a tightening in global grain supplies drove demand. Operating income improved due to productivity and volume gains.

"Coatings Segment sales rose due to the contribution of Delta, and due to inventory rebuilding activity among our North American customers. Sales to the agriculture industry were notably higher. Operating income performance was good as productivity remained high.

"For the year, operating income as a percent of sales declined to 9.0% from 13.3% in 2009. Return on invested capital fell to 8.1% from 15.2% due to the increase in total assets and the decline in operating income."

2011 Outlook:

"The year 2011 holds great opportunity and many challenges for Valmont," Mr. Bay said, "The operating environment during the first quarter will be a particular challenge due to severe weather and the pressures of rising steel costs.

"For the full year, we expect favorable comparisons in the Irrigation Segment as tighter crop supplies and rising farm income should drive sales. In the Coatings Segment, the addition of the Delta locations will lead to positive sales comparisons. In the Engineered Infrastructure Products Segment, our customer base is operating in an environment of no long-term highway bill, budgetary pressures and struggling European markets. Rising steel prices and a weak competitive pricing environment create additional challenges for this segment. In the Utility Support Structures Segment we look for volume gains, and until industry capacity is more fully utilized, a competitive pricing environment.

"With respect to our outlook for earnings, at the present time we expect 2011 earnings per share to increase between 35-45%.

"Over the long-term, our two markets, Infrastructure development and Agriculture provide ample opportunity for us to grow. Economic progress relies on infrastructure. Population growth demands more efficient production agriculture. Our challenges are to best serve our customers today and to wisely invest for tomorrow’s opportunities."

An audio discussion of Valmont’s fourth quarter results Mogens C. Bay Terry J. McClain 8:00 a.m. CST February 18, 2011 http://www.valmont.com/page.aspx?id=445&pid=21 February 18, 2011 10:00 a.m. CST 12:00 p.m. CST February 25, 2011

Valmont is the global leader in designing and manufacturing poles, towers and structures for lighting and traffic, wireless communication and utility markets, industrial access systems, highway safety barriers and a provider of protective coating services. Valmont also leads the world in mechanized irrigation equipment for agriculture, enhancing food production while conserving and protecting natural water resources. In addition, Valmont produces a wide variety of tubing for commercial and industrial applications.

This release 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 Valmont 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. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont’s control) and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include among other things, risk factors described from time to time in Valmont’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 material, 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 statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share amounts)

(unaudited)

Fourth Quarter

Year-to-Date

13 Weeks Ended

52 Weeks Ended

25-Dec-10

26-Dec-09

25-Dec-10

26-Dec-09

Net sales

$ 598,712

$    398,627

$ 1,975,505

$ 1,786,601

Cost of sales

441,036

275,968

1,455,931

1,254,587

         Gross profit

157,676

122,659

519,574

532,014

Selling, general and administrative expenses

95,358

75,133

341,161

294,020

         Operating income

62,318

47,526

178,413

237,994

Other income (expense)

    Interest expense

(8,068)

(3,913)

(30,947)

(15,760)

    Interest income

1,658

523

4,840

1,509

    Other

649

424

676

2,340

(5,761)

(2,966)

(25,431)

(11,911)

         Earnings before income taxes,

          and equity in earnings of

         nonconsolidated subsidiaries

56,557

44,560

152,982

226,083

Income tax expense

20,101

13,249

55,008

72,894

         Earnings before equity in

         earnings of nonconsolidated

         subsidiaries

36,456

31,311

97,974

153,189

Earnings in nonconsolidated subsidiaries

453

171

2,439

752

         Net earnings

36,909

31,482

100,413

153,941

Less:  Earnings attributable to non-controlling interest

(2,042)

(1,491)

(6,034)

(3,379)

         Net earnings attributable to Valmont Industries, Inc.

$   34,867

$      29,991

$      94,379

$    150,562

Average shares outstanding (000’s) – Basic

26,151

25,995

26,100

25,951

Earnings per share – Basic

$       1.33

$          1.15

$          3.62

$          5.80

Average shares outstanding (000’s) – Diluted

26,427

26,384

26,422

26,289

Earnings per share – Diluted

$       1.32

$          1.14

$          3.57

$          5.73

Cash dividends per share

$     0.165

$        0.150

$        0.645

$        0.580

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(unaudited)

Fourth Quarter

Year-to-Date

13 Weeks Ended

52 Weeks Ended

25-Dec-10

26-Dec-09

25-Dec-10

26-Dec-09

Net sales

    Engineered Infrastructure Products

$ 210,756

$    156,084

$    677,314

$    597,046

    Utility Support Structures

128,455

129,814

474,920

700,548

    Coatings

76,528

27,235

238,273

115,530

       Infrastructure products

415,739

313,133

1,390,507

1,413,124

    Irrigation

134,317

82,848

443,371

362,187

    Other

67,913

14,392

198,550

68,639

    Less: Intersegment sales

(19,257)

(11,746)

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