Valmont Industries (VMI) 22 Feb 242023 Q4 Earnings call transcript

Greetings. Welcome to the Valmont Industries, Inc. Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions]. Please note this conference is being recorded. the President, to Investor turn Campbell, host, now Vice Senior Relations will conference your over Renee I and Treasurer. Ms. begin. may you Campbell,

and Thank Interim Earnings a that be the Welcome and will morning. and by will on Chief are webcast webcast this you, the and presentation to provide and current Industries fourth brief our market and Tim long-term year and President summary of followed today's for in later Officer. our and today's results call our business on will call. of X morning. Please Quarter or which live A at presentation of Tim our Slide replay close end discussion be update will is This this side Officer; available Fourth indications Avner quarter Francis, Avner be to to the and results Applbaum, Full investors Financial accompany financial With valmont.com. will will for from statements, forward-looking call of full with Call. is and Q&A. read provide applies A note on available full outlook Valmont review targets. strategy today's XXXX Avner on financial on outlined Executive me dynamics. Chief disclosure today download Year XXXX. good morning, new the website will This an subject at our the is our

through site. Valmont please up and information, you would sign investor publishes notified like alerts news e-mail if to releases when Finally, be for other our

President to on to Chief brands the investors Executive Avner that, would our and social call our others media Applbaum. Officer, and like company follow and Valmont our listed encourage on the to now We website. With I over channels turn interested in also our

saying how on thank Renee. by team. proud like Valmont comments my of the joining key you the messages everyone, us. you, am for Slide Thank global with I'd morning, and Good X begin to I

firmly We challenges we are confidence have XXXX. many a much this navigated strategic over me were enduring I in achieving organization Together, beginning we're than success. our on past stronger at And the gives objectives. of year, believe we yet progress making our the today

some Over year, shaped resilient decisions. but necessary the past long-term capable we sustainable us made that stakeholders. value hard our of a have to Ones delivering company more into

sales. expanded Turning top faced The to XXXX. The we points full gross team year points. environment dynamic that solid operating executed highlights. line margins and results created well profit XXX adjusted we Valmont Despite demand this, XX impacted our basis headwinds delivered adversely in basis margins and

Our commercial job did operations keeping control business. and great costs winning teams a higher-value and under

share As generated of invested more managing investing operating flows than We a result, by return deployment of grew cash in adjusted XX%. earnings returning team strategy adjusted and capital our to shareholders. X%. on our capital, achieved working cash supporting growth also per capital The strong disciplined

in solid to segments. pricing to addition continue both strategy our operating In we follow performance,

our to lower expansion the add We sales are by and inflation value customers. margin capturing amid ongoing we driving

Higher than volume sales offset selling North by Turning than more sales America. sales offset more the year-over-year, the XX% higher to net net Higher sales TDNS to XX% portfolio. Agriculture X% down lower Infrastructure and in were where grew solar international average telecommunications prices segments. were due business were year-over-year much our increased volumes partially lower volume. year-over-year. across by in

and work, of favorable excited wrap we the our demand As XXXX, team. dedication drivers and up long-term the for Valmont resiliency based hard future I'm upon

on Turning to starting Slide with update X for markets, our an infrastructure.

at utilities such is replacing supported leading drivers CapEx aging to efforts as unchanged. demand infrastructure. by multiyear transition, is spending outlook energy relatively and grid These market levels. Our the segment megatrends elevated sustain are favorable their This resiliency

our solar favorable is by business to expected globally addition, continue. and strong demand In policy is supported

the benefits Wireless is Transportation and carriers business reduced expected being CapEx construction spending telecom have year, IIJA communicated road an in to year. & Lighting this by in investments supported is Our to leading lingering are which U.S. this tailwind softness be the business. from later incremental our

are recovers to quickly for increase and positioned strategically remain infrastructure output capacity business. the in Across invest We all long-term we this well confident maintain the when growth. to in in continue our segment's confidence market the and opportunity businesses,

conditions market Moving softening. to agriculture. We see

compared ag North XXXX we markets, long-term fundamentals However, supporting farm demand. market XXXX income in underlying recent U.S. American that are suggest levels. significant decline remain about In to projections in positive a

strong. to balance expect projected is income decline Growers we remain Although sheet to

remains for irrigation However, are sign we rates is coming last of XXXX income order the peak a after muted we systems year. off positive seeing as sentiment which Currently, somewhat ahead begin year, tracking levels.

impacted Turning to can America. North international, seen retail in similar markets be by drivers

performed Brazil have in years record well We irrigation consecutive with of sales. X

due conditions role higher lower Weather prices planting to rates. However, influencing and also crop income and farm softening are playing are sentiment grain interest stress and decisions. expected a in levels

throughout solutions remains us part It are Egypt address underscore strategy. for on these the the is market compelling our advantage return how of a may pivot, that for dedication products our expected food projects Valmont provide markets opportunities. project the products other regions, while and In technology and and influencing and Technology our leading project of These and our competitive furthering also irrigation buying for They decisions. customers. impact short-term most concerns to growth, long-term our previously long-term supply is on development. is return anchor attractive enhances ultimately XXXX. a that to of gives Although market a investment attractive Shipment one factors favorable global provide economics solutions leadership. to industry continue Brazil help position security announced the expertise testament our a sustainable key

turn outlook. it for our fourth financial Now to Tim quarter I'll over XXXX

Avner, and you, everyone. Thank good morning,

the focus the on adjusted the Reg disclosure as appendix. comments X outlined G presentation in My in the in will to release Slide and results. Turning and fourth results quarter press

this reflect global of results strength quarter Our our diversification. the increased

and to in business net decreased in XX.X% $X.XX Fourth market America the billion offshore $X of decreased segment, Solid of operating operating net weakness of the Other continued year-over-year. prior helped decreased in slowing quarter margin divestiture X.X%. our sales the Brazil. and reported SG&A decreased margins mitigate share wind market year. of year-over-year, lower million per Accounting sales performance Infrastructure in North ag XXXX XX.X% agriculture segment Operating demand higher earnings for with was income X.X% of sales. versus Diluted $XXX.X attributed

volumes. solar, in and were with of market sales telecommunications Slide by Infrastructure offset to million year-over-year. TD&S decreased strong utility along supported pricing continued across than more segments and Turning the and $XXX.X X% favorable demand, X. lower Higher the volumes by coatings portfolio

slightly were by of operating overall While more margin improved sales. offset goods million, to to deliberate of decreased operating than net cost XX.X% Favorable sold pricing income lower $XX.X to improve actions and volumes.

of grower higher last equipment and million, Slide of and of XXXX. sales fourth XX.X% to to driven comparable the project sales was elevated volumes XX.X% of delivery lower XX. sales Agriculture year-over-year. lower were higher and decreased by growth impacting XXXX more backlog. to were offset fourth in International Moving benefited $XXX.X level income as margin America, quarter from $XX.X the selling sales to a are as net compared lower returned by SG&A. irrigation Brazil million year. Operating decreased grain irrigation backlog the quarter acquisition, driven operating and Products HR normalized the sentiment as In sales prices North volumes ongoing was Average prices sales lower from of to by

to Turning year reductions flows diligent million management, cash inventory. of full Slide contributed flows primarily approximately operating Strong quarter flow cash flows to in $XXX and cash cash million of the $XXX working on fourth free earnings and capital XX. through in

Turning through ended cash. full year were of deployment. XX repurchase $XX nearly the capital for dividends and $XXX the inclusive approximately accelerated million. to repurchases, of in million Slide the to year We returned with quarter. $XXX share Capital a capital million program shareholders announced million expenditures share $XXX of in fourth We summary

desired Moving X.Xx. of adjusted XX. within to Total to to X.Xx our range X.XXx EBITDA of debt Slide was

and cash as to introduce on balances, shown and outlook would sheet now ample I credit reduce available strategy. to Our us our XX. allocation short-term balance XXXX our like execute provide with Slide borrowings flexible liquidity capital

down net in be range to sales guiding with a compared X% flat XXXX. are and between We

this Turning to mid-single-digit our segment growth assumptions. year. approach In infrastructure, expect we to

the be telecom markets expect we continue is in expected to similar XXXX. through Softness to of XXXX, and sales to quarter quarter telecom fourth first

our expect lower more income agriculture, across year, grain by challenging projections. more time, this due strength markets. Avner's In XXXX prices in comments, we global building will than other at market expected this For conditions infrastructure to farm the softness be in offset on

sales be expect As XX% XX% to to lower. the for a segment we result,

softening some international pipeline price purchasing to Brazil, market. To attention our focused demand, we close Additionally, on remain technology is project mitigate increasing we are our this international our help strengthening paying in which solutions. of trends adoption largest of and leadership,

As in of comparison shipment in compared due from a ongoing can this the backlog the segment timing quarter expect quarter first sales to XXXX. We international XXXX the of reminder, predict shipments quarter-to-quarter. be hard tougher project a of of first to rest do to elevated

modest made the diluted we profit range reducing sharpened we've be focus businesses, expense. coupled XXXX to consolidated in margin Through of of in this we to our to SG&A $XX.XX. earnings some the focus, gross share operating sales expect expect despite segments, Across and per our both projections. changes We margins on $XX.XX already with improvement lower structural

will to price volume in ongoing decline. leadership efficiencies improvement offset and operational Our from commitment deleverage

our long-term to in expense XXXX more reminder in year. resulted SG&A These than benefit announced October, expense expect lower pretax our a and with We of realignment sustainability which the expect approximately come. organization our success segment corporate the years million the initiative reductions we we lower our XXXX, much align cash actions part more an to inflationary will in SG&A of These expenses to ensure offset that program of to effectively $XX actions proactive recover as from realignment that the growth of in this in commitment expected taken organizational and teams are through increases. A strategy. actions

growth focused the million quarter our capital quarterly XXXX environment initiatives in are us growth continue benefit as our steel we enhancing recent to reviewing and gross on will are the a in increase operational outliers first efficiencies. The expect in expansion infrastructure variability savings million we Texas dynamic expected to of to this to support which and This capacity. Brenham, be of expenditures focus cost $XXX profitable with lead The XXXX. expected such range is segment in as businesses productivity margin, to cost across year. pursue can cost strategic actions on variations to underway profit $XXX We and

to over this Avner. flows ongoing management. With will on through improve year turn We call cash to I our capital focus that, expect back now free the working

Tim. you, Thank

Turning Slide XX. to

this focus Before we remarks from to near the like I'll future share term the current of new to conclude our targets. shift prepared Today, our I morning, financial with view our XXXX. would beyond

managing Importantly, expectations foundational consistent achievable this dedication growth returning reflects and to view principles financial our of to performance. and Valmont's

was Moving as model remain our It years to that Slide Valmont business and start first creation. we to same. our start, This want centered introduced values model. priorities value shows several I around core the everything do a with company XX. is To communicates our ago.

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to our we on stakeholders. Next, to we our been our to areas. refined These ensure turn focus priorities have promises deliver four

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at set great a have team and high we have We Valmont expectations.

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solutions. customer innovative Finally,

to rate exceptional achieve value stakeholders. enhancing customers. innovates new of AI-enabled and and retain we bring customer-centric do product our how Through our values Our the adoption core gain all focus will helps us areas, innovation for and new value with improves these can approach many we ways, we offering, products driving in and technology, processes customers. sustainable business, refining to creation our Valmont by introducing

Turning will on digits expected to believe our growth. growth with infrastructure. We view term. long sales XX and Beginning see our over Slide the and markets of stable markets mid-single

have towards of grid renewable rise weather and Aging sources infrastructure a are and transition. stages reliability. concerns due the about needs energy beginning hardening transitioning energy a increasing and severe multiyear to at Power are We raised energy in consumption. are

a mandate. materials of Farmers in productivity and products inputs. rate despite Our of ag and needs wide customers solutions In increase digits challenged growth support fewer variety sustainable resilient mid-single cycle. our an swings agriculture, expect cycle, the we and in with will consistently of the to average are clean energy land through the market

can. technology solutions growers we expertise, do to security growth else do global irrigation water target market, new geographies. we for sales as more Ongoing digits. and can demand above each to come. In with these With grow improved support to Factors no driving are to market less. the change, growth irrigation things expect to capabilities Our practices mid-single help will sustainability our are climate above We scarcity designed population one food segment, capabilities and considerations farming engineering net manufacturing leading move concerns and such consolidated years can and a

and deep innovation for solutions. look We have to new customer relationships, products through they us and

Our broad footprint flexible makes us profitable. competitive and more and

In continue these to forward when I a you will of to take just more approach growth initiatives opportunities. these prioritizing expansion. meaningful with we profitable sharing look become initiatives, are our as growth I terms to business. over discussing measured

margins. and Slide with financial beginning operating XX to our Turning results, long-term

capitalize growth to the pricing will strategic across We our value we on and customers. sustain the actions reflecting portfolio, our deliver

approaching continued mid-teens. factors, quicker us Our operational greater for margin an recently combined and to allows operating streamlined adaptability. organization guide efficiencies decision-making with These

a allocation capital We strategy. are disciplined reinforcing

We in profitable effectively. deployed and strategic resources criteria will and be will growth. filtered projects acquisitions through to ensure financial persist investments sustainable, drive Internal strategic making to are

in We the are ROIC confident teens. high these actions in will result

cash to free Our conversion XXX%. goal net remains earnings flow at

growth. flow. on will a have track we We a working focus capital efficiency generating capital strong future management, to our proven record With of improve cash fund

within committed for improved credit maximize supported markets We're managing in secular The to straightforward. actions Additionally, serve end our financial by in results. summary, what and set attractive investment our maintaining to up we our beyond. XXXX drivers. many takeaways grade is are are today us rating. In from took we performance We long-term control XXXX

our control elements our to to is opportunities objectives. long-term the job Our future manage within reach seize and

execute our which Our can ability above us grow gives advantages, confidence to rest on we competitive markets. our

on the focused critical creating future. of on business lives. I the very objective model we now are keep well excited on Finally, our legacy back I'm and believe our that to over we building will united around our us I Renee. way of the turn value. improving successful call to about are conserving resources will

At Thank questions. call you, Avner. operator this open for up the will time, the

Instructions]. [Operator

of Our with comes Blair. from first question line Brian Drab William the

on I segment. Irrigation wanted the first ask to

order up -- seeing the Just the that fourth the as And in trying to well. seeing earlier to think, that trend, I reconcile decline year, the quarter you're if for XX% the XX%. order rates early forecast in in and are you're year year-over-year,

question. the take I'll Yes, Brian.

of a projections in what reduction XX% on the farm soybean prices on based XX% income. seeing based the higher Brazil showing seeing we're and the USDA reduction our We're on between net are projection based So around interest softness overall, in rates. to XX% grain

So our and and that's reduction. we provided they're overall farmers sentiments impacting that why guidance farmer of

we're year However, starting North than they America, actually the in a stronger ago. seeing were year orders

is year down. year, going But any last without going that going that this overall, actually And year into versus are backlog. to So expectations us. the encouraging for in our is be we're

give of into year. lot the So us it doesn't visibility a

to one down or XXXX be other international than the Can going you is be in your domestic if you which the forecast? more say -- in business business expect the to

the same percentage. pretty They're be much going both similar, down to

little mentioned too to Egyptian moment. you is into a challenges Avner, had will expected XXXX? then, in the choppy ship can XXXX. Egypt order And $XX that It's to at throughout there. the you million incremental project And not expect about talk been any do you and far what -- that are governments also, How And ship Okay. healthy you? you've

that have curious where and how that you visibility just much you project? are So to in

Yes.

we So to in that care much continue of of closely. very one aware and monitor course, Egypt, situation do the we're very

year. we we it As make to to we make the place that before shipping last our started make do minimize risk LC sure it We ship, we project, in and our have we before sure we sure confirmation relates reduce every ship product. the of

now, right difficult based always these projects project So I'd XXXX. to is course, timing the variability the predict And to ship all on say majority the of of of still the that expected region. is in in

I in shipping Can Okay. quarter? project fourth Were you that for ask? the

Yes, we have.

of Jones comes Our Stifel. line with next Nathan question the from

follow questions. up I'll ag the some guess on I of

what As during lot 'XX could of operating margins you see revenue and the expectations some towards with be, a and to can in see Maybe end you're didn't down, margins anything us you COVID a we expecting ag deleverage. pretty we going see actions significantly offset of you do of 'XX, where operating are Just for taken saw 'XX? where how COVID, of the to of expect that? revenue increasing you've of cost that coming some kind should leverage to lot with deleverage in set we what help

question. Yes, of were the gross QX. Nathan, XX% profit agriculture during Tim. with We segment margin I'll that the for pleased it's take

to knowing long have We demand. a how to a customer levels, history react reduction our in of adjust to production

on We also for buy efficiency we the things including have of multiple side most team operational level, strategic house. the our important how at to out infrastructure trying best but the only on the sourcing teams not plant focused figure the pivot,

that XX% that margins we we the fiscal our gross terms be we printed margins just in XXXX, in expect forecast in recognized So for than profit financial but XXXX. QX, better versus profit would of gross down slightly

quickly. doesn't SG&A I guess, And the as move then

compress? So margins operating should the

that of expectation similar the in to that is here we I have XXXX. level our as would a SG&A sales say seen percentage stays

As to have was was was we additional have SG&A is $XX of release, And it million $X or million modeled and in XXXX. we as $XX discussed in realignment ag, a earnings cost program, expected of found million in million That savings inflation. $X for million infrastructure, the we addition, that our put corporate. that of we $XX offset out projections

impact. challenging some of very ag percentages able all similar And the actions let we took that We're me these XXXX margin comments have just profitability we it to a larger these very the despite and maintain past, the much beyond. in But reduction, ]. fact allows we're businesses [ our of that environment. you have us levels pleased when would kind in type the these profitable In a have with and to maintain add operating improved really other

helpful. wanted org I Great. redesign, org on That's realignment. the to ask

You've that? of out of from derive to the us about kind I hoping was talk savings could financial for more And strategic a are redesign, hoping given the the that. you're value strategic of organization. the rationale what what bit you realignment

for Thanks we agile, we've Nathan, this with org organization done We us. and helps quicker quickly. it's design more be can decisions. very really make our What to critical that move can

We have better access to We the quicker than data. market. were

better visibility market. drive to the help us work organization better transparency, better and in this have we're collaboration innovation. into with We able will And

that strong an returns. So drive keep can and it's structured, we so innovation capitalize on these organization driving market now trends we overall, and have

impact on capitalize some of to excited strong that our and about So these already and business on markets. move forward seeing are our we ability

[Operator next Chris of Securities. comes CJS Moore question Our the from with Instructions] line

Or markets start that I'll in is ag include recovery Do don't some of targets. in they telecom? the XXXX. they function begin and long-term a XXXX? like Maybe Obviously, with financial

Yes.

commitment we've long-term our taken at growth sustainable, look we've [indiscernible] profitable we more and driving overall targets, when long-term of here, approach, what creation. a value flexible So done

not end really practices. of businesses. at So cyclicality to It an well specifically a we're point. beginning looking for It's or industry aligns account the with these

for So us the to we're X at keep years. -- allows us but even ability gives is cycle, term, the the we're it. beyond through looking innovating, at looking how -- on not short investing, It

horizon. is sustainable time profitable wouldn't So doing to strategy as updates this continue cycle. value. overall, responding our drive we're how provide will through And periodic market specific we're And shareholder at and it on to dynamics. growth, overall our goal a It's on the we to I look how create

I XX% the that Got see it. only last don't it. metric is Appreciate EPS is to from correct? May The XX% growth,

Yes. We've I EPS earnings provided increase. course, we're, of an mean expecting to not guidance.

such not any elements However, EPS were provide of benefits dividends, our time. since that overall we would as or buyback, capital guidance any there strategy, so felt many an are to your EPS are that -- allocation, providing not tied capital provide not would it included, this share allocation at acquisitions

with revenue had as was just was, last XX%. Got percentage last that -- in goal side, ag you roughly one Is year think moving for it. a on me about, XX% still And the The parts I forward? 'XX. I a maybe think, of talked goal a

Yes.

It what right? products segment, So is market, focusing looking we overall whole real mid-single as we're with help sales, But as Agriculture at the the them growers the it and of our how all the do part to part relates on overall, we're overall, going and is growing at And focus our growing we agriculture we're it important does margin. with digit above it irrigation above our in whole. our overall business. are grow an have looking agriculture offering aspects. a in the to we're better-than-average at The provide including looking on solutions, solution our business way

Our the next Wright with Partners. of Brian question Capital comes from line ROTH

picture targets. you each big buybacks, to I prior just just allocation on dividends, of financial But what in you -- allocation think your about rank decisions? think those hurdle gives long-term the understand share lot that up of including and you comments just XX capital rates not -- of wanted how capital how a Slide and about kind acquisitions for relative ordering of kind to I your follow flexibility. wanted the

Yes.

know long-term for at strong specifically as goals, and So we organic are we'll infrastructure, provided use capital and overall, have not included. when you opportunities aging and we are in when CapEx. generate look which areas targets around organic transition, priorities, our infrastructure expect data invest the we business, like those agriculture We energy share of technology, our allocation we When number look best acquisitions to look flows, we significant. consumption long-term at those drivers today at and our capital our the around own allocation, cash is is security, the ourselves, opportunity our to sustainability. It But lot growth footprint I one market for food population innovation. us in our invest a own our in There is market and and kind our -- the in in of own ourselves.

So that is number for have one the those strongest returns the us.

based level, at capital of core. value. these our sure we the to year uses based part on when is is of be at high We They're They then very always that second we close the and accretive with acquisitions look like keep strong are very are of We tied to acquisition. -- synergies take approach. X a and We're our year X. a products [ we acquisitions, to at share by And And ] acquisitions buybacks driving that objective and will needs we're capital have. look know markets make strategy other on our synergistic. disciplined be then The we closely on capital to quickly we these dividend. going to going to allocation know,

just we to lot on is point at testament our investing to keep how capital when a XXXX it. drive in business look opportunities of that and and sustainable at we is look And elevated growth. So last see you profitable our that's a one role a

Great. That was very helpful.

little wanted dig irrigation into Brazilian a I side. follow-up, my So just the to bit

the being I recall been the I growth up a the lot has exception. in But churn. of faster lot last just months point, until about part in a growth. we've Investor a is talking recent cycle that think had know And the from X of Day replacement I Brazil there years.

of And into replacement so numbers. how Is kind the some maybe more to like dynamic? Or about that that? part XXXX think how think activity like to that seeing through a of like about coming just

Yes.

And increasing it, years So activity. Africa. overall, off new We're Middle our in on Brazil. so business Brazil, generate also additional with in East parts -- machines, when keep we strong seeing very in that the that at a I will years, We're business. all coming record look we X and are as lot Brazil, of have North

putting pivots part in on have keep we the we will field, sales. additional as So

The more in other than crop in work a as Brazil in we more which, we right triple machines element crops, lot usage they'll Africa. hours, X when on run we need crops, is X dynamics same again, of more will get Brazil,

for a good in that So will provide us runway the future those markets.

Our question next comes with D.A. line Davidson. from [indiscernible] of the

your any in the around telecom again you share of Can for views group life Are there XXXX? that business? signs

So we've a the seen in challenging environment telecom business.

comp this the looking in looking carrier in forward. As we've to of quarter the year's at, expecting there a difficult on first spending. We're noted have previous calls, we've based seen softness while

XXXX And North -- that now, America. it's be is expecting we're year right for difficult in a lot us. to of So a

consumption, we at be cycle expand of very trends XG look XG. mega some around mean, around some of And forward long as keep have the we should the of the geographies well and our you significant We those on to it area, those growth in densification. in I we as need bodes term, for globally. in data us opportunities are the But for that seeing business. going us investing

I So bit how see excited is a about for going is it. be long challenging us XXXX the to term.

drive structuring margins capital appears opportunities finding significant concentrated these stance pricing T&D. utilities years. It to of still gears different in any company with amount customers? contracts the here? towards shifting And are towards coming Are is T&D And you to taking or the improving guys

the we TDS market. So bullish are about extremely

just connect the Data seeing are areas load electrification. ago based need energy to growth that growth We centers in consumption. We're grid. the data a energy seeing renewable minute took need data based energy transition. strong to on We you demand the those about on very consumption, more

with our ability or well And product those could really for help areas very for our positive those solve So all concrete, very, it we're all us. needs, if our other. doing and be customer steel in to are offering areas

partners be with projects provide. bid strong in we price and those have and and that help on services well, make based could our we successful a strengthening with working that we the value of We alliances that we them and lot there's the on our keep provide alliance, come. on to that we as we then And sure the so we years

to these So capitalize strong and overall, strength markets. the of on we relationships yes, continue maintain our

you on is So guys just into into the increasing we said we reading you're pricing? improvements that the Am will I that that factors, to other and any -- based confirm, XXXX. right? inflation price the growth when see services margin can provide, therefore, say year-over-year And or taking projects, with account you imply you

Tim. It's

Let take that me question.

the tied where majority -- them pricing it remember, our being have -- steel of in mechanisms utility to. the a contracts price index being ends what ends up So in up is

I had market. a remarks, in has tell steel would dynamic been So you, cost as dynamic I my of the very prepared

more we that will our at in expect much as right pricing would we now, of put not were our there increase get on to average volume we cost or to based projecting. But able volumes we into TDS for we're leverage be improvement well as of in factories the steel As decrease factories. today's

to end reached have will I remarks. the We question-and-answer for now Campbell turn the session, Renee and call of closing over the

today. for Thank you joining us

quarter. for with on playback we or and speaking to you today's phone next our next website for X will days, be mentioned, available forward look by call the As again

anticipated statements, filed the and on including and conditions, the market business disclosed general as materials; overall economic economic served company's of Commission, of should results, company affecting domestic Exchange foreign Securities competitive availability other future and the financial forward-looking regarded differ raw or domestic and actions and and beliefs. The price integration revisions contain pricing, changes unanticipated after current the plans, market discussion such the company slides estimates such and geopolitical well to the the or company's specifically known of other company that its and acceptance market Such conference. as of concludes circumstances, statements and to be of new and these of or declines governments. accompanying results future statements occurrence of that of today's Consequently, Litigation events. This as results Act events involve performance acceptance conditions, international reflect publicly forward-looking does XXXX. not contain cause could forward-looking may undertake any policy and efficiencies, be the factors and and made unknown to actual risks, the materially statements and These reports by statements risks the services; subsidiaries, product with and by industry within operating the statements products, from obligation the industry's reflect circumstances the any such uncertainties and release environments, to availability or to meaning factors acquisitions the and any of of Private will date of implied the such oral the Reform company and results conditions Securities products expressed periodic

Thank time. this your disconnect for you lines at your participation. now may You