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|Valspar Reports Fourth-Quarter and Fiscal-Year Results|
MINNEAPOLIS, Nov 22, 2010 (BUSINESS WIRE) -- The Valspar Corporation (NYSE:VAL) today reported its results for the fourth-quarter and fiscal-year ended October 29, 2010.
Fourth-quarter sales totaled $876.8 million, a 12.9 percent increase from the fourth quarter of 2009. Fourth-quarter adjusted net income per share increased to $0.56 in 2010 from $0.53 in 2009. Fourth-quarter adjusted net income per share in 2010 excludes a $0.03 per share charge for fees related to the acquisition of Wattyl and a $0.02 per share charge related to restructuring actions. Fourth-quarter adjusted net income per share in 2009 excludes a $0.04 per share charge related to restructuring actions. Net income for the fourth quarter of 2010 was $51.3 million and reported earnings per share were $0.51. Net income for the fourth quarter of 2009 was $49.9 million and reported earnings per share were $0.49.
Fiscal year 2010 sales totaled $3,226.7 million, a 12.1 percent increase. Adjusted earnings per share increased 26 percent to $2.23 in 2010 from $1.77 in 2009. Adjusted net income per share for 2010 excludes an $0.08 per share charge related to restructuring actions, a $0.03 per share charge for fees related to the acquisition of Wattyl and an $0.08 per share gain from the sale of assets. Adjusted net income per share for 2009 excludes an $0.18 per share charge related to restructuring actions and a non-cash charge of $0.10 per share for Huarun minority interest shares. Net income for 2010 was $222.1 million and reported earnings per share were $2.20. Net income for 2009 totaled $160.2 million and reported earnings per share were $1.49.
"Our strong earnings performance for the year reflects solid volume growth driven by new business and outstanding operational discipline by Valspar employees," said William L. Mansfield, Valspar chairman and chief executive officer. "During the year we continued to invest in branding and leading-edge technologies, maintained tight control of our cost structure and strengthened our global presence."
Mansfield also commented on the outlook for Fiscal 2011. "Revenue growth from our new business initiatives and our Wattyl acquisition, together with pricing and productivity to offset ongoing pressure on raw material costs, position us to deliver another strong year. We currently anticipate fiscal 2011 adjusted net income per share in the range of $2.45 to $2.65."
Mansfield, Gary Hendrickson, president and chief operating officer, and Lori A. Walker, senior vice president and chief financial officer, will conduct a conference call for investors at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) today. The call can be heard live over the Internet at Valspar's website at www.valsparglobal.com under Investor Relations. Those unable to participate during the live broadcast can access an archive of the call on the Valspar website. A taped delay of the call will also be available from 12:30 p.m. Central Time November 22 through Midnight on December 6 by dialing 1-800-475-6701 from within the U.S. or 320-365-3844 from outside of the U.S., using access code 178645.
The Valspar Corporation (NYSE:VAL) is a global leader in the paint and coatings industry. Since 1806, Valspar has been dedicated to bringing customers the latest innovations, the finest quality and the best customer service in the coatings industry. For more information, visit www.valsparglobal.com.
This press release contains certain "forward-looking" statements. These forward-looking statements are based on management's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside our control and could cause actual results to differ materially from such statements. These uncertainties and other factors include, but are not limited to, changes in general economic conditions both domestic and international, including recessions and other external economic and political factors, which may adversely affect our business, the value of our investments, the financial stability of our customers and suppliers and our ability to obtain financing; dependence of internal earnings growth on economic conditions and growth in the domestic and international coatings industry; competitive factors including pricing pressure and product competition; risks related to any future acquisitions, including risks of adverse changes in the results of acquired businesses and the assumption of unforeseen liabilities; risks of disruptions in business resulting from the integration process and higher interest costs resulting from further borrowing for any such acquisitions; our reliance on the efforts of vendors, government agencies, utilities and other third parties to achieve adequate compliance and avoid disruption of our business; risks of disruptions in business resulting from our relationships with customers and suppliers; risks and uncertainties associated with operations and achievement of growth in developing markets, including China and Central and South America; unusual weather conditions adversely affecting sales; changes in raw materials pricing and availability; delays in passing along cost increases to customers; changes in governmental regulation, including more stringent environmental, health and safety regulations; changes in accounting policies and standards and taxation requirements such as new tax laws or revised tax law interpretations; the nature, cost and outcome of pending and future litigation and other legal proceedings; civil unrest and the outbreak of war and other significant national and international events; and other risks and uncertainties. The foregoing list is not exhaustive, and we disclaim any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements.
(1) Huarun redeemable stock accrual reduced basic and diluted net income per common share $0.10 in the year-to-date period of 2009.
The following is a reconciliation of "Forecasted Net Income per Common Share - diluted" to our "Full Year Guidance" for the period presented.
* Certain amounts in prior years' financial statements have been reclassified to conform with the 2009 presentation.
SOURCE: The Valspar Corporation
The Valspar Corporation
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