The Valspar Corp. Board of Directors has authorized the repurchase of up to 15 million shares of outstanding common stock—about 15% of the company’s current outstanding shares, the company announced Wednesday (Oct. 13).
The new authorization is effective immediately, does not expire, and replaces the authorization approved in October 2009, which allowed for the repurchase of up to 4 million shares.
Shares may be purchased at management's discretion in market transactions or negotiated private purchases, said the Minneapolis-based paint and coatings manufacturer.
Depending on market conditions and other factors, these repurchases may commence or cease from time to time without prior notice, the company said. As of Oct. 12, the company had 97,969,277 common shares outstanding.
Several companies have been announcing or boosting buyback efforts lately, some because the need to preserve capital has eased during the economic recovery and others because they consider their equity undervalued, Dow Jones Newswire reports.
Valspar now has 1.5 million fewer shares outstanding compared with a year ago, Dow Jones said.
In its third-quarter earnings report, Valspar reported sales of $873.9 million, a 10% increase from the same period last year. Third-quarter adjusted net income per share increased to $0.70 in 2010, from $0.67 in 2009.
Valspar’s revenue grew less than expected, and gross margin suffered from rising materials costs, according to Dow Jones. Valspar’s company's stock closed Wednesday at $31.57, up 0.4%. The shares have risen 16% in value since the beginning of the year, outpacing the broader market climb, Dow Jones reported.
For more information, visit www.valsparglobal.com.