message to fellow shareholders

the year 2009 marked another record for valmont, with a 13.7 perent increase in earnings per share on a 6.3 percent decline in revenue.

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Our industry diversification played an important role in this year’s record performance. The improvements in earnings were contributed by our utility business, as our other segments were hit by the global recession to varying degrees. Operating income as a percent of sales improved to 13.3% compared with 12.0% in 2008. Our return on invested capital declined slightly to 15.2% from 16% last year. Overall, we are pleased with these results given the very difficult global economic environment. In reflecting on the year 2009, the severe global financial crisis prompts the question: Has anything fundamentally changed to threaten Valmont’s future opportunities for success?

We think not. Let me explain why.

Most major economies are still under stress and many infrastructure projects are being delayed. Furthermore, farm income has declined recently. We believe these are short-term challenges.

The two principal long-term drivers for Valmont’s businesses are general economic growth, which requires investments in infrastructure, and a growing population, which leads to increased pressures on production agriculture to more efficiently use limited fresh water resources. To support economic growth and expansion, our structures enhance the quality of a country’s infrastructure. To support population growth, Valmont’s irrigation products help farmers to increase production with less water. The link between our products and economic and critical social progress has not changed because of recent events.

Valmont is in a strong position. We hold market leadership positions in businesses that support infrastructure growth and the need for more food, and are very optimistic about our long-term opportunities.

In 2009, our Engineered Support Structures Segment faced many headwinds. The strongest one was global weakness in roadway and construction spending, resulting in a 7% decline in sales and a 5% reduction in operating income.

Our Utility Support Structures Segment had an extraordinary year. We started with a record backlog of orders and experienced strong activity throughout the year, which led to a 37% increase in sales. The high volumes led to excellent fixed cost leverage in the plants and good leverage of selling, general and administrative costs. As a result, operating income more than doubled.

Our coatings business did a good job of protecting the quality of its earnings. Despite an 18% sales decline and a 22% decline in operating income, operating income as a percent of sales remained above 20%.

Our Irrigation Segment results were defined by the North American farmers’ reluctance to invest, as they were faced with tremendous economic uncertainty during the core selling season and declining commodity prices. International markets were confronted with similar issues, as well as the additional stress of tighter credit. These adverse conditions led to a 35% drop in global irrigation sales and a 60% decline in operating income for the year. Let me update you on our progress with “The Valmont Way.” The Valmont Way is our method of implementing a culture of continuous improvement. It is our road map to becoming a true lean enterprise and is based upon our corporate values by which we live every day: passion for our customers and products; uncompromising integrity; the pursuit of excellence through continuous improvement; and delivering results.

In 2009, we continued to sharpen our focus on eliminating waste through the ongoing training and engagement of our global workforce in The Valmont Way. Each employee had individual and group training on the principles of the Valmont Way, and I believe we are gaining broad acceptance and enthusiasm for the power of these methods. Our commitment to the health and safety of our employees and communities remains unwavering. Around the world, our divisional and facility safety programs were strengthened through the streamlined reporting, improved communication, training, and auditing of our Environmental Health and Safety Department. Our emphasis on health and safety is an integral part of The Valmont Way.

We have also initiated a concerted effort to address our sustainability. We believe that companies that monitor and measure their practices with an eye toward the environment will become better companies and stronger competitors. We have an obligation to be good stewards of our resources.

One milestone for which we are particularly proud occurred in November, when Valmont was presented with the Presidential “E Star” Award. This award recognizes persons or organizations for significantly contributing to increasing United States exports.

Throughout 2009, I continued my visits to our facilities around the world. It is important for me to meet our employees face to face. I assure you, we have a dedicated worldwide team with great passion for our products and markets, and for serving our customers better than anyone else. I am proud of what they have accomplished, and I thank each one of my fellow employees for all they do for Valmont.

The turbulent economic environment will pose challenges for Valmont and for our customers in the coming year. We move into 2010 with a cautious outlook, but unbridled enthusiasm for the opportunities ahead. Regardless of the economic environment facing us in 2010, I can assure you that we will remain sharply focused on maximizing our performance and deliver­-ing the highest value possible to our customers and stakeholders.

Sincerely,

Mogens C. Bay
Chairman and Chief Executive Officer

Jeffrey S. Laudin

Investor Relations Department
Valmont Industries, Inc.
One Valmont Plaza
Omaha, NE 68154 USA
Tel 1-402-963-1000
Fax 1-402-963-1198