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

 

Download our free ebook on Abrasive Blast Cleaning

Paint and Coatings Industry News

Main News Page


Valspar Q2 Rings Up a Sunnier Forecast

Tuesday, May 15, 2012

More items for Coating Materials

Comment | More

The Valspar Corp. is treating investors to a brighter earnings forecast for 2012 on the heels of a solid second quarter.

Strong sales increases in both paint and coatings kept the Minneapolis-based company well above the billion-dollar mark in the second quarter that ended April 27, according to a company earnings report issued Tuesday (May 15).

 Valspar Corp.

 Valspar Corp.

New business in Valspar’s industrial segment opened the door to higher coatings sales in the second quarter.

Second-quarter 2012 sales totaled $1.03 billion, a 4 percent increase from the same period of 2011. Adjusted net income per share increased to 84 cents for the second quarter of 2012, up 31 percent from 2011.

Industrial Sees New Business

“We were pleased with our performance in the quarter,” said Gary E. Hendrickson, president and CEO.  “Our earnings growth was driven by new business in our industrial product lines, better price-to-cost balance, productivity improvements and benefits from last year’s restructuring actions.”

He added: “Our volume trend improved sequentially in both our Coatings and Paint segments in the quarter.”

Valspar’s portfolio includes coating intermediates, coil and protective coatings, packaging and automotive coatings, and consumer paint.

Earnings Forecast Revised

The good-news quarterly report was the second consecutive one for the world’s sixth-largest paint and coatings company, which ended 2011 with a fourth-quarter loss of nearly $300 million, due to over-valuation of two product lines.

The new report came with a reward for investors: an increased full-year earnings per share guidance of $3.30, up from $3.20, “reflecting our expectation of further volume growth and continued execution of our key operational initiatives,” said Hendrickson.

Q2, YTD Highlights

Second-quarter net sales were $1.03 billion, up from $992,729 in the prior-year period. Year-to-date net sales were $1.9 billion, up from $1.8 billion in the first half of 2011. Gross profit increased to $355 million in the second quarter of 2012, from $315 million in Q2 of 2011. For the first half of the year, gross profit was $648.7 million, compared with $574.4 million for the first half of 2011.

R&D spending nudged down slightly in the second quarter, to $29.4 million from $30.0 million in the same period of 2011. For the first half of the year, R&D spending declined by about $1.5 million.

Net income increased to $76.5 million for the quarter, up from $56.3 million from 2011. Net income for the year to date was $132.3 million, up from $89.7 million for the first half of 2011.

Segment Results

Coatings continued to make up the majority of Valspar’s sales; the segment accounted for $540 million in second-quarter sales (up from $509 million in Q2 of 2011) and $1.03 billion in the first half of the year. Paint sales totaled $426 million in the first quarter (up from $418 million over 2011) and $765 million in the first half of the year.

Earnings Before Interest and Taxes (EBIT) were $89.1 million for coatings in the second quarter (up from $59.9 million in 2011) and $162.9 million for the first half of the year. Paint EBIT was $49.3 million for the second quarter (up from $38.9 million) and $72.6 million (up from $58.4 million) for the first half of the year.

   

Tagged categories: Earnings reports; High-performance coatings; Protective coatings; Valspar

Comment Join the Conversation:

Sign in to our community to add your comments.

Sherwin-Williams
Sherwin-Williams Protective & Marine Coatings

With 4,000 distribution points and 3,700+ years of experience, Sherwin-Williams delivers the products, support and expertise you need, right where you need it.


Polyval Coatings
Polyflex® Polyurea Linings

Polyflex™ new Polyurea Geotextile Membrane System has been specifically engineered to protect the environment in containment applications.
www.polyflexlinings.com


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.


Jessup Manufacturing Company
More Traction for Extreme Marine Conditions

Jessup Safety Track® 3800 Military Grade peel-and-stick non-skid tapes and treads provide extra slip resistance for decks. MIL-PRF-24467C Type XI, Black & Gray.


International Paint LLC

International Paint Engineered Coatings

Learn about our solutions for:
  • Structural Steel
  • Piping & Equipment
  • Storage Tanks
  • Pressure Vessels
  • Secondary Containment


    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


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

    Join SSPC and Enhance
    Your Career !


    Thermion Inc
    Buy Back Program

    We are offering $5,000
    credit for your old Model
    This drive system is
    being discontinued by
    the manufacturer.
    More information at
    thermioninc.com
    877.884.3428


    Carboline Company
    Hydrocarbon Fire & Jet Fire Protection

    Pyroclad X1 is the latest breakthrough in epoxy based intumescent fireproofing technology

  •  
     
     
    Technology Publishing

    The Technology Publishing Network

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

    © Copyright 2000-2015, 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