PaintSquare.com
      | Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise
  

 

Download our free e-book! Overcoating bridges and other structures.

Coatings Industry News

Main News Page


Coatings Power Up Valspar’s Q3

Wednesday, August 13, 2014

More items for Coating Materials
More items from Europe

Comment | More

Buoyed by a double-digit bounce in coating sales in the third quarter, Valspar Corp. announced an improved 2014 forecast on Tuesday, forecasting nine percent sales growth for the year.

Net sales in the coatings segment increased by 16 percent in the third quarter of 2014, reflecting improvement across all product lines, the world's sixth-largest paint and coatings company reported Tuesday (Aug. 12).

Valspar industrial
Photos: Valspar Corp.

Valspar's numbers got a boost from the 2013 acquisition of the Inver Group, a leading European industrial coatings supplier.

Combined with a smaller increase in paint sales, the company reported third-quarter 2014 net sales of $1.2 billion, an increase of 10 percent over the prior-year period, and a 13 percent increase in Earnings Per Share (EPS) as adjusted, to $1.21.

Chairman and CEO Gary E. Hendrickson credited a "diverse business portfolio" for delivering "strong results."

“These results were driven by the successful integration of acquisitions; strong performance from China and Europe; improved sales and profitability in our coatings segment; benefits of new growth initiatives; investments in innovative products; and the positive impact of productivity initiatives,” he added.

Coatings Boom

Valspar's Coatings segment showed volume and sales increases across all product lines. Excluding acquisitions, sales in the segment increased 6 percent, and volumes were up by the mid-single digits.

“We realized the highest growth in the General Industrial product line, which benefited from the impact of the Inver acquisition and modestly improving end-market demand," said Hendrickson.

The General Industrial portfolio includes protective, off-road equipment, container, transportation, gneeral industry and other coatings.

Valspar Industrial

Valspar's coatings segment showed volume and sales increases across all product lines.

Valspar announced in 2013 that it planned to acquire Italy-based Inver Holding S.r.l., a leading industrial coatings supplier in Europe.

Hendrickson also reported growth in the Packaging product line, "driven by market share gains and momentum of our non-BPA products." Valspar is the top global supplier of metal packaging coatings.

Volumes were up in all geographic regions.

Paint Growth

Net sales in the Paints segment increased by four percent to $474 million in the third quarter, led by growth in China and Australia; overall volume increased in the high single digits.

Sales in the U.S. increased by the low single digits, impacted by second-quarter shipments to support the introduction of new retail programs in both the home improvement and hardware channels, Valspar said.

Valspar Paints

The quarter featured the introduction of Valspar Reserve and the rollout of Valspar paint at Ace Hardware.

The company launched its new Valspar Reserve premium paint at Lowe’s and rolled out Valspar-branded paint at more than 3,000 Ace Hardware stores. Advertising and marketing costs from those launches, however, nicked 16 percent from third-quarter EBIT, when compared to the prior-year period, the company reported.

Looking Ahead

Based on its 2014 performance to date and its outlook for the fourth quarter, Valspar updated its fiscal 2014 sales guidance to nine percent—the upper limit of its earlier projections. Adjusted EPS guidance was adjusted to $4.05 to $4.15, said Hendrickson.

A webcast of the Valspar's third-quarter earnings conference call is available in the company's Investor Center.

   

Tagged categories: Architectural coatings; Coatings manufacturers; Earnings reports; Market share; Paint and Coating Sales; Valspar

Comment Join the Conversation:

Sign in to our community to add your comments.

Hempel (USA) Inc.
Trusted worldwide for advanced protective coatings

Trusted worldwide
for advanced
protective, coatings
–Full range of 
  advanced coatings
–Optimised application
–Fast, reliable service  worldwide. Contact us at oilandgas@hempel.com


Carboline Company
Carboline is pouring with opportunities

We are proud of our exceptional products and services, and believe that people are our greatest asset. Come grow with us!


PPG Protective and Marine Coatings Group
We Protect and Beautify the World

PPG is widely recognized as a world leader in protective and marine coatings, developing innovative, cutting-edge products and services.


SAFE Systems, Inc.
Enduroguard -
The Tough Cable
for a Tough Industry.

Reduce maintenance costs and down time, increase job site safety with Enduroguard Cable. Available exclusively from SAFE Systems. UL listed, flexible, abrasion resistant and cut resistant.


Tnemec Company, Inc.
Online Coating Courses from Tnemec

For decades, Tnemec has offered its expertise to clients presenting face-to-face coatings courses. Now, these presentations are available to anyone for CEUs at Tnemec University.


Jotun Paints Inc.
Jotachar JF750 - The Time Saving Solution

The only mesh free solution for jet fire scenarios. Jotachar saves installation time and material costs - the next generation of epoxy passive fire protection.


Sherwin-Williams
Sherwin-Williams General Polymers Resinous Flooring App

Our coatings and linings expertise available 24/7, allowing you to explore the Sherwin-Williams systems best suited for your flooring needs. Android Users Click here to Download the app today!


PreTox Products - NexTec, Inc.
GOT LEAD? Specify Pretox System products

The ONLY Lead Stabilizer Compatible with All Paint Removal Methods. Works with all Blast Media: Grits | Recyclable Abrasives | CO2 | Water | Power Tools | Etc. Call Dave Steffen at 800.338.8296.


NLB Corporation
NLB Sure Shroud: Greater Protection and Flexibility

NLB’s Sure Shroud’s lighter weight and flexibility reduces operator fatigue and offers unmatched protection against high pressure hose ruptures. 10k to 40k psi rated.


US Minerals
US Minerals -
Black Magnum

With nationwide production and distribution capabilities, U.S. Minerals supplies a complete range of coal slag and other abrasives to meet all of your blasting needs.

 
 
 

Technology Publishing Co., 2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us