PaintSquare.com


The First Word in Protective & Marine Coatings

A Product of Technology Publishing / PaintSquare
JPCL | PaintSquare News | Durability + Design | Paint BidTracker

Paint and Coatings Industry News

Main News Page


Valspar Rebounds with Q1 Valentine

Tuesday, February 14, 2012

More items for Coating Materials

Comment | More

Valspar Corp. celebrated Valentine’s Day with sweet success, bouncing back from an end-of-year loss with double-digit gains and a brighter full-year earnings outlook.

The Minneapolis-based paint and coatings company rebounded from a $295 million fourth-quarter loss, reporting increases in sales, net income and earnings Tuesday (Feb. 14) for the first quarter ended Jan. 27.

 Valspar Corp.

 Photo: Valspar Corp.

First-quarter sales in Valspar’s coatings segment grew to $494.6 million in 2012, compared to $456.3 million in 2011.

Valspar is the fifth-largest paint and coating company in North America and the sixth largest in the world.

Its portfolio runs from consumer paint, to coating intermediates, to coil and protective coatings, to packaging and automotive coatings.

Q1 Highlights

First-quarter 2012 sales totaled $885.6 million, a 5.1 percent increase from the first quarter of 2011, the company reported. Adjusted net income per share increased to $0.62 in Q1 of 2012, a 59 percent increase from the prior-year period.

(First-quarter adjusted net income per share excluded a $0.04 per share restructuring charge in 2012 and $0.05 per share in acquisition-related charges in 2011.)

 Valspar CEO Gary Hendrickson
CEO Gary E. Hendrickson announced that the company was increasing its full-year earnings guidance.

Net income for the first quarter of 2012 was $55.8 million (up from $33.4 million in Q1 of 2011), and reported earnings per share were $0.58 (compared to $0.34 for the year-ago period).

The coatings segment boomed, with first-quarter sales climbing to $494.6 million in 2012, compared to $456.3 million in 2011. Paint sales edged up to $339.5 million for the quarter, from $335.9 million in the year-ago period.

‘Excellent Execution’

“We are pleased to report strong earnings for the quarter, which were the result of excellent execution and generally in line with our expectations,” said Gary E. Hendrickson, president and chief executive officer. “We continue to make progress in restoring our operating margins through pricing, productivity and cost management.”

He also said the company had “strengthened our balance sheet by issuing a $400 million bond at attractive rates.”

Buoyed by the first-quarter report and “despite higher interest expense and challenging global markets,” Hendrickson announced that the company would raise its full-year earnings guidance to $2.92-$3.12.

2011 Loss

Valspar made a strong showing overall in 2011, with a 22.5 percent increase in sales, its 33rd consecutive dividend increase, and a big leap in adjusted earnings per share.

The good year ended badly, however, with a fourth-quarter loss of nearly $300 million, due to major impairment charges from over-valuation of two housing-related product lines.

When the balance sheet shook out at year’s end, Valspar posted a full-year loss of $138.6 million, or $1.47 per share.

   

Tagged categories: Architectural coatings; Earnings reports; Protective coatings; Valspar

Comment Join the Conversation:

Sign in to our community to add your comments.

Mitsubishi Gas Chemical America
Performance Amine 1,3-BAC

A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.


Polyval Coatings
Polyflex® Polyurea Linings

exhibit outstanding versatility in use; providing abrasion resistance, superior seamless waterproofing and high-chem corrosion protection. www.polyflexlinings.com


Sherwin-Williams
Heat-FLex® Hi-Temp 1200

• Improved Corrosion
  Resistance
• Enhanced Durability
• Faster Shop Throughput


BASF
New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films basf.us/industrialcoatings
polyorders@basf.com
800-231-7868


Hempel (USA) Inc.
HEMPEL PROTECTIVE COATINGS

Efficient systems and high quality products to reduce your maintenance costs. Visit Hempel Protective for more information.


Wasser High-Tech Coatings Inc.
Wasser Coatings Protect

some of the most important bridges in the country; learn about our NEPCOAT-approved system and our entire range of MCU & Polyurea coatings. 1-800-627-2968 www.wassercoatings.com


SSPC: The Society for Protective Coatings
http://www.sspc.org/

Join SSPC and Enhance
Your Career !

 
 
 
Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker JPCL Europe

 
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
 

© Copyright 2000-2014, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com