| Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise


Download the FREE Equipment and Rental Resource Guide

Paint and Coatings Industry News

Main News Page

Coatings Nudge Valspar Upward in Q3

Wednesday, August 15, 2012

More items for Coating Materials

Comment | More

Sales of industrial and other coatings fueled third-quarter growth by the Valspar Corp., but the second-quarter sunshine cooled slightly for the Minneapolis paint and coatings maker.

Overall, sales inched up 1% overall for the third quarter, compared to the same period a year earlier.

 Notable market share gains in industrial and other sectors helped to offset soft coatings.

 Photos: Valspar Corp.

Market share gains in industrial coatings helped offset soft performance in other segments.

Net income for the quarter ended July 27 was $86.4 million, compared to $67.4 million in the prior-year period, with the increase attributed in part to new business in the coatings segment and exits by last year’s unprofitable product lines.

3% Revenue Increase

Sales for the quarter totaled $1.08 billion, up from $1.07 billion from Q3 of 2011 and up from $1.03 billion in the second quarter of 2012. The second-quarter showing was up 4 percent from that prior-year period.

“We were pleased with our performance in the quarter,” said Gary E. Hendrickson, chairman and CEO. “Excluding negative currency impact, our revenue increased three percent, and our strong earnings growth is the outcome of excellent execution in a challenging global environment.”

For the company’s fiscal year, sales were $2.997 billion, up from $2.906 billion a year earlier. Net income thus far was $218.7 million compared to $157.1 million for the prior-year period.

Coatings Show Gains

For the Coatings segment, sales for the quarter were $569.7 million, up from $560.8 million for the same period a year earlier. Segment earnings before interest and taxes (EBIT) were $98.2 million compared to $67.8 million in the prior-year period.

According to the company, the 5.2% increase in the Coatings segment was due in part to new business, prior pricing action, and last year’s exits of unprofitable product lines.

Coatings segment sales for the year so far were $1.605 billion, up from $1.526 billion a year earlier. Segment EBIT for the year was $261.2 million, compared to $178.5 million in the prior-year period.

Moreover, notable market share gains in wood coatings, packaging and industrial coatings helped to offset soft markets in this segment, Hendrickson noted.

Paint Sales Inch Up

Paint segment sales for the quarter were $442.6 million, up from $441.6 million a year earlier. Segment EBIT for the quarter was $48.8 million, compared to $42.1 million in the prior-year period.

 Gary E. Hendrickson, Valspar chairman and CEO, says he expects “continued softness” in the fourth quarter.
Gary E. Hendrickson, Valspar chairman and CEO, says he expects “continued softness” in the fourth quarter.

Hendrickson credited the company’s “Love Your Color” campaign with some of the paint segment growth, saying the campaign was delivering on expectations in North America.

Paint segment sales for the year were $1.20 billion, up from $1.19 billion a year earlier. Segment EBIT for the half was $121.5 million, compared to $101 million in the prior-year period.

Looking Ahead

Hendrickson predicted a slower fourth quarter, but he remained confident about the company’s fundamentals.

“We expect continued softness in some international markets and modest growth in North America,” he said. “However, we are confident the strength of our portfolio, our growth initiatives and our proven ability to drive productivity improvements will offset these challenges.”

He also reaffirmed the full-year earnings per-share forecast of $3.20 to $3.30, from an earlier forecast of $2.92 to $3.12 per share.


Tagged categories: Coatings manufacturers; Earnings reports; Finance; Valspar

Comment Join the Conversation:

Sign in to our community to add your comments.

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.

New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films

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.

Wasser High-Tech Coatings Inc.
Wasser Coatings Protect

Wasser Coatings offer a complete range of Moisture Cure Urethane (NEPCOAT approved) systems in addition to Polyurea membranes and linings(NSF).

Carboline Company
Fireproofing Solutions

Pyroclad® X1 Thermo-Lag® Pyrocrete® – protecting against hydrocarbon and jet fires, explosions, and cryogenic spills.

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.

International Paint LLC
Rapid cure, high temperature lining

AkzoNobel introduces Enviroline 405HTR, an ultra-low VOC lining. 405HTR offers rapid return to service, and excellent chemical resistance at high temperatures.

Polyval Coatings
Polyflex® Polyurea Linings

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

Hempel (USA) Inc.

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

Farrow System USA, Inc.
       SIMPLY the BEST
In Wet Abrasive Blasting

Automated controls simplify operation. 100lb. media capacity & enclosed water tank, for hours of continuous blasting. Dry weight of 350 lbs. & 150 psi capable.

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   |   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