Welcome!

Microsoft Cloud Authors: David H Deans, Yeshim Deniz, Janakiram MSV, Andreas Grabner, Stackify Blog

News Feed Item

Valmont Announces Fourth Quarter and Fiscal Year 2012 Results

Highlights:

OMAHA, Neb., Feb. 12, 2013 /PRNewswire/ -- Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure and mechanized irrigation equipment for agriculture, reported fourth quarter sales of $815.0 million compared with $752.7 million for the same period of 2011. Fourth quarter 2012 operating income was $111.7 million versus $77.4 million in 2011. When comparing this year's $2.43 fourth quarter diluted earnings per share to last year's reported fourth quarter diluted earnings per share of $4.33, it should be noted that included in last year's fourth quarter was $2.50 per share of favorable one-time items recognized as a result of a reorganization of the Company's legal structure. Excluding those favorable one-time items, fourth quarter 2011 diluted earnings per share were $1.83.

For fiscal 2012, sales were $3.0 billion versus $2.7 billion in 2011. Operating income for fiscal 2012 was $382.3 million versus $263.3 million in 2011. Valmont's fiscal year net earnings were $234.1 million, or $8.75 per diluted share compared with 2011 fiscal year earnings of $228.3 million, or $8.60 per diluted share, which included the aforementioned $2.50 per share of favorable one-time items in the fourth quarter of 2011.

Fourth Quarter Review:

"The main drivers of record fourth quarter operating results were the substantial sales increases in the Utility Support Structures and Irrigation Segments," said Mogens C. Bay, Valmont's Chairman and Chief Executive Officer. "Increased sales of wireless communication products and intercompany sales of utility products contributed to improved results in the Engineered Infrastructure Products Segment. In the Coatings Segment, a decline in Australian demand was the main reason for lower sales. Those businesses reported in "Other" had improved operating margins despite lower sales.

"Increased volumes in both the Utility Support Structures and Irrigation Segments allowed us to realize significant fixed cost leverage during the quarter. This led to a 13.7% operating margin for the quarter, compared with last year's 10.3%."

Fourth Quarter Segment Review:

Utility Support Structures Segment (30% of 4th Quarter Sales)

Steel and concrete structures for the global electric utility industry.

Sales of $252.6 million were 25% higher than 2011, mostly as a result of increased large-project demand from North American utility customers. Electric utilities continued to invest in structures for the transmission grid to improve reliability, add physical capacity and increase the interconnectivity of regional transmission grids. International utility sales increased, primarily due to higher export sales from China.

Valmont believes the transmission infrastructure needed to meet the objectives of improved reliability and interconnectivity will drive a multi-year period of high demand for utility structures. Consequently, in addition to capacity expansions announced earlier in the year, the Company made an additional investment in manufacturing capacity by purchasing a facility in Columbus, Nebraska during the fourth quarter.

Operating income rose 60% to $47.1 million, which represents 18.7% of sales. The increase in operating income was due to an improving mix of orders and the positive impact of volume and SG&A leverage.

Irrigation Segment (24% of 4th Quarter Sales)

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

Sales rose 13% to $203.4 million, with gains in North America more than offsetting a decline in international sales. While sales increased in most regions, total international sales declined due to a reduction in project business in North Africa.

North American demand was supported by a couple of factors. Historically high crop prices resulted in high levels of farm income. In addition, last summer's drought impacted many growing regions of the U.S.  Following periods of drought, in addition to the inherent benefits of mechanized irrigation, the economic benefits of irrigation during a drought becomes an additional driver. As a result, a large number of growers are seeking the benefits of irrigation. This led to record order rates and greatly improved sales during the fourth quarter.

Long-term drivers remain strong for the irrigation market. World population growth and dietary improvement create a long-term increasing demand for food. Water availability concerns will pressure agriculture to reduce its water consumption over time. Valmont's mechanized irrigation equipment helps to provide a solution to this global dilemma by improving farm productivity and using water efficiently.

Operating income grew 49% to $40.5 million and was 19.9% of segment sales. The improvement in operating margin was largely the result of operating leverage, a favorable sales mix and good factory performance.

Engineered Infrastructure Products Segment (27% of 4th Quarter Sales)

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

Fourth quarter sales were $229.1 million, a 4% increase over 2011. In North America, sales of lighting and traffic products were flat and the market environment was little changed. Intercompany sales to the utility division were higher than last year.

Sales of lighting and traffic structures in Europe were lower due to continued economic weakness and government austerity programs. Lower sales comparisons also reflect the exit in 2011 from certain geographic operations.

In the Asia-Pacific region, sales rose in all product lines, particularly in the Webforge engineered access systems business.

Sales of wireless communication structures and components were higher in North American markets and lower in China.

Operating income was $13.1 million, or 5.7% of segment sales. Excluding the impact of one-time charges to reduce the carrying value of certain trade names in the fourth quarter of 2011, fourth quarter segment operating income in 2012 was slightly improved over 2011. The improvement was mostly due to increased performance in wireless communication in North America and broad improvement in the Asia-Pacific businesses, which more than offset decreased profitability in the global lighting businesses.

Coatings Segment (10% of 4th Quarter Sales)

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

Sales of $83.2 million were 7% lower than last year. Most of the sales decline was attributable to reduced demand in Australian markets reflecting a slowdown in construction in eastern Australia. In North America, sales were comparable to last year with increased internal irrigation and utility demand offsetting lower custom demand.

During the fourth quarter, the Company acquired Pure Metal Galvanizing in Ontario, Canada. This acquisition expands Valmont's North American footprint and complements our global portfolio. The acquisition had minimal impact on fourth quarter results. Integration activities are proceeding on schedule.

Operating income declined 10% to $17.1 million, or 20.5% of segment sales due to the reduction in Australian volumes.

2012 Fiscal Year Review:

"Very strong utility and irrigation market demand were the main drivers of record results in 2012," said Mr. Bay. "Looking at results by segment, the Utility Support Structures Segment benefited from significantly increased investments by utility companies in the transmission grid.  In the Irrigation Segment, increased demand for feed-grains, strong crop prices and historically high farm incomes led to record demand for mechanized irrigation equipment. In the second half of the year, widespread drought in North America accelerated demand. Sales in international irrigation markets were modestly higher for the year. In the Engineered Infrastructure Products Segment, sales increases in the North American and Asia-Pacific regions more than offset lower sales in Europe. The most significant contributor to increased profitability for the segment was improved performance in the North American wireless communication business. Our coatings business operated well, generating increased profitability on slightly lower sales.

"For the year, operating income as a percent of sales for the Company improved substantially from 9.9% to 12.6%."

Subsequent Event:

On February 5, 2013 the Company acquired privately-held Locker Group Holdings Pty Ltd., a market leader in Australia and Asia for the manufacture of perforated and expanded metal for the non-residential market, industrial flooring and handrails for the access systems market, and screening media for applications in the industrial and mining sectors.

2013 Outlook:

"We expect another record performance in 2013," Mr. Bay said, "The current demand for Utility Support Structures is strong as reflected by our record backlogs at year end. We expect a solid first-half in the Irrigation Segment, which also had record year-end backlogs. In the Coatings Segment we expect solid demand and continued good performance. In the Engineered Infrastructure Products Segment, despite continued restraint in government spending we still expect a modest sales increase and continued profitability gains. While it is still early in the year, we currently expect low teens revenue growth and high teens earnings growth for 2013."

An audio discussion of Valmont's fourth quarter results by Mogens C. Bay, Chairman and Chief Executive Officer and Terry J. McClain, Senior Vice President and Chief Financial Officer, will be available live by telephone by dialing 1-877-493-2981 and entering Conference ID#: 98703081 or via the Internet at 8:00 a.m. CST February 13, 2013, by pointing browsers to: http://www.valmont.com/page.aspx?id=445&pid=21 After the event you may listen by accessing the above link or by telephone. Dial 1-855-859-2056 or 404-537-3406, and enter the Conference ID#: 98703081 beginning February 13, 2013 at 10:00 a.m. CST through 12:00 p.m. CST on February 20, 2013.

Valmont a 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 EARNINGS

(Dollars in thousands, except per share amounts)

(unaudited)










Fourth Quarter


Year-to-Date


13 Weeks Ended


52 Weeks Ended


29-Dec-12


31-Dec-11


29-Dec-12


31-Dec-11

Net sales

$           815,037


$           752,730


$         3,029,541


$      2,661,480

Cost of sales

590,692


557,785


2,227,085


1,994,670

          Gross profit

224,345


194,945


802,456


666,810

Selling, general and administrative expenses

112,601


117,588


420,160


403,500

          Operating income 

111,744


77,357


382,296


263,310

Other income (expense):








     Interest expense

(7,968)


(9,460)


(31,625)


(36,175)

     Interest income

2,191


2,346


8,272


9,265

     Other

(560)


(1,867)


347


(2,643)


(6,337)


(8,981)


(23,006)


(29,553)









          Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 

105,407


68,376


359,290


233,757

Income tax expense

39,497


(46,022)


126,502


4,590

          Earnings before equity in earnings of nonconsolidated subsidiaries 

65,910


114,398


232,788


229,167

Equity in earnings of nonconsolidated subsidiaries

817


3,550


6,128


8,059

          Net earnings

66,727


117,948


238,916


237,226

Less:  Earnings attributable to non-controlling interests

(1,691)


(3,217)


(4,844)


(8,918)

          Net earnings attributable to Valmont Industries, Inc.

$             65,036


$           114,731


$            234,072


$         228,308

















Average shares outstanding (000's) - Basic

26,517


26,361


26,471


26,329

Earnings per share - Basic

$                 2.45


$                 4.35


$                  8.84


$               8.67









Average shares outstanding (000's) - Diluted

26,812


26,499


26,764


26,550

Earnings per share - Diluted

$                 2.43


$                 4.33


$                  8.75


$               8.60









Cash dividends per share

$               0.225


$               0.180


$                0.855


$             0.705



VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(unaudited)












Fourth Quarter


Year-to-Date



13 Weeks Ended


52 Weeks Ended



29-Dec-12


31-Dec-11


29-Dec-12


31-Dec-11

Sales









     Engineered Infrastructure Products


$         229,115


$     220,003


$          882,106


$     817,593

     Utility Support Structures


252,556


202,848


873,520


624,870

     Coatings


83,155


88,905


334,552


327,322

     Irrigation


203,427


180,640


750,641


666,007

     Other


82,980


85,009


328,737


331,986

          Total


851,233


777,405


3,169,556


2,767,778










Intersegment sales









    Engineered Infrastructure Products


(11,731)


(6,961)


(48,793)


(24,996)

     Utility Support Structures


(785)


2,634


(3,857)


(4,105)

     Coatings


(14,216)


(12,251)


(52,478)


(46,534)

     Irrigation


449


(103)


(49)


(111)

     Other


(9,913)


(7,994)


(34,838)


(30,552)

          Total


(36,196)


(24,675)


(140,015)


(106,298)










Net sales









    Engineered Infrastructure Products


217,384


213,042


833,313


792,597

     Utility Support Structures


251,771


205,482


869,663


620,765

     Coatings


68,939


76,654


282,074


280,788

     Irrigation


203,876


180,537


750,592


665,896

     Other


73,067


77,015


293,899


301,434

          Total


$         815,037


$     752,730


$       3,029,541


$  2,661,480










Operating Income









    Engineered Infrastructure Products


$           13,106


$         9,846


$            54,013


$       40,753

     Utility Support Structures


47,124


29,429


129,025


70,643

     Coatings


17,070


19,056


71,641


58,656

     Irrigation


40,450


27,136


143,605


107,759

     Other 


13,162


12,769


46,575


45,670

     Corporate


(19,168)


(20,879)


(62,563)


(60,171)

          Total


$         111,744


$       77,357


$          382,296


$     263,310










The backlog of orders for the principal products manufactured and marketed was $903 million at the end of the 2012 fiscal year and $703 million at the end of the 2011 fiscal year. We anticipate that most of the backlog of orders will be filled during fiscal year 2013. At year-end, the segments with backlog were as follows (dollar amounts in millions):


29-Dec-12



31-Dec-11





Engineered Infrastructure Products 

$            212



$            208





Utility Support Structures 

434



383





Irrigation 

231



97





Other 

26



15






$            903



$            703














The company has four reportable segments based on its management structure.


Engineered Infrastructure Products:This segment consists of the manufacture of engineered metal structures and components for global lighting and traffic, wireless communication, roadway safety and access systems applications.


Utility Support Structures:This segment consists of the manufacture of engineered steel and concrete structures for the global utility industry.


Coatings:This segment consists of global galvanizing, painting and anodizing services.


Irrigation:This segment consists of the manufacture of agricultural irrigation equipment and related parts and services worldwide.


In addition to these four reportable segments, Valmont also has other businesses that individually are not more than 10% of consolidated net sales. These businesses, which include the manufacture of forged steel grinding media, tubular products, electrolytic manganese dioxide and industrial fasteners, are reported in the "Other" category.



VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(unaudited)






29-Dec-12


31-Dec-11

ASSETS




Current assets:




     Cash and cash equivalents

$     414,129


$     362,894

     Accounts receivable, net

515,902


426,683

     Inventories

412,384


393,782

     Prepaid expenses

25,144


25,765

     Refundable and deferred income taxes

58,381


43,819

          Total current assets

1,425,940


1,252,943

Property, plant and equipment, net

512,612


454,877

Goodwill and other assets

629,999


598,256


$  2,568,551


$  2,306,076





LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




     Current installments of long-term debt

$            224


$            235

     Notes payable to banks

13,375


11,403

     Accounts payable

212,424


216,729

     Accrued expenses

180,408


157,128

     Income taxes payable

-


17,808

     Dividend payable

6,002


4,767

          Total current liabilities

412,433


408,070

Long-term debt, excluding current installments

472,593


474,415

Other long-term liabilities

276,515


225,680

Shareholders' equity

1,407,010


1,197,911


$  2,568,551


$  2,306,076



VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS

REGULATION G RECONCILIATION

(Dollars in thousands, except per share amounts)

(unaudited)


Non-recurring items listed below relate to: a one-time tax benefit from a legal reorganization and the net effect of other significant 2011 non-recurring items.


Quarter ended December 31, 2011

Diluted earnings per share







Net earnings attributable to Valmont Industries, Inc. - as reported

$     114,731

$          4.33
















Tax benefit from legal reorganization

(66,026)

-2.49
















Other non-recurring items - net of tax

(215)

-0.01
















Net earnings attributable to Valmont Industries, Inc. - Adjusted

$       48,490

$          1.83







 

 

 

SOURCE Valmont Industries, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Recently, IoT seems emerging as a solution vehicle for data analytics on real-world scenarios from setting a room temperature setting to predicting a component failure of an aircraft. Compared with developing an application or deploying a cloud service, is an IoT solution unique? If so, how? How does a typical IoT solution architecture consist? And what are the essential components and how are they relevant to each other? How does the security play out? What are the best practices in formulating...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
SYS-CON Events announced today that Elastifile will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Elastifile Cloud File System (ECFS) is software-defined data infrastructure designed for seamless and efficient management of dynamic workloads across heterogeneous environments. Elastifile provides the architecture needed to optimize your hybrid cloud environment, by facilitating efficient...
There is only one world-class Cloud event on earth, and that is Cloud Expo – which returns to Silicon Valley for the 21st Cloud Expo at the Santa Clara Convention Center, October 31 - November 2, 2017. Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers. Companies are each developing their unique mix of cloud technologies and service...
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.