The Valspar Corp. reported net income of $61.7 million for the company’s second quarter ended April 30, a significant increase from net income of $31.1 million for the same period a year earlier. Sales for the quarter rose 20.2%, to $803.6 million, as demand strengthened for paint and coatings products.
The figure for net income excludes charges related to restructuring actions, the company said.
William L. Mansfield, chairman and CEO, said sales “increased significantly in all regions in both our Paint and Coatings segments, with core growth and new business contributing to the improvement." He added, "Volume growth in combination with operating discipline and tight control of expenses were the main drivers of our earnings performance.”
For the company’s first half ended April 30, net income was $95.610 million, up sharply from net income of $42.298 million for the same period a year earlier. Sales for the half rose 12.8%, to $1.476 billion.
For the company’s Coatings segment, sales for the quarter ended April 30 were $442.091 million, a gain of 23% from the prior-year period. Earnings before interest and taxes (EBIT) rose sharply, to $62.4 million, from $29.9 million in the same period a year earlier.
For the Paint segment, sales for the quarter ended April 30 were $303.996 million, an 18% increase from the same period a year earlier. EBIT for the quarter rose 47%, to $52.2 million.
Earnings outlook brightens
In comments on the outlook for the remainder of the fiscal year, Mansfield said the company is increasing its earnings forecast to reflect demand recovery, although he added that higher raw material costs remain a factor that could affect earnings. He said the company is forecasting earnings per share in the range of $2.10 to $2.25, excluding restructuring charges, for the full year. The company’s forecast at the end of its first quarter called for full-year earnings per share in the range of $1.85 to $2.05.