PaintSquare.com
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

Coatings Industry News

Main News Page


Industrial No Help to Valspar in Q2

Wednesday, May 15, 2013

More items for Coating Materials

Comment | More

Declining demand for pipeline and other industrial coatings stunted Valspar Corp.'s growth in the second quarter, but the company notched improved performance overall, buoyed by strength on the consumer side.

Sales for the quarter ended April 26 totaled $1.03 billion, equal to 2012’s second quarter. Net income for Q2 was $83 million, up slightly from $80 million for the same period a year earlier, the company announced Tuesday (May 14).

Valspar Industrial
Valsparindustrial.com

The company says lower demand in the general industrial product lines, including pipeline coating products, is being offset by growth in other areas. It held to its revised full-year guidance.

Second-quarter net income per share was $0.91, an increase from $0.84 in 2012. Valspar reaffirmed its full-year projected earnings per share to be in the $3.60 to $3.80 range. The company adjusted its 2013 full-year guidance after a flat first quarter.

Highlighting Volume

The Minneapolis-based paint and coatings maker said volume increased 7 percent in the quarter, thanks to the inclusion of volumes resulting from the recent Ace Paint deal.

“The seven percent growth in total volumes, inclusive of Ace volumes, was a significant accomplishment, especially given the uneven demand this year in several markets,” said Gary E. Hendrickson, chairman and CEO.

Hendrickson noted solid performance and momentum in the company’s consumer paints, packaging, wood and coil product lines.

Valspar Ace Deal
Valspar Corp.

In January, Valspar announced it would manufacture and supply Ace-branded paint products. Growth from this deal helped increase volumes by 7 percent.

“The strengthening U.S. housing market, coupled with our continued new business initiatives, should provide further improvements in the second half of the year,” he added.

North America Fuels Paints Segment

For the company’s Paints segment, second-quarter sales were $438 million, edging up 3 percent from the same period in 2012.

The increase was due to volume and sales growth in North America, the company says. Paint sales there rose 13 percent, the company reported.

Paint segment adjusted earnings before interest and taxes (EBIT) increased 11 percent to $59.1 million, fueled by higher sales volume.

Coatings Unit Takes Hit

As for Valspar’s Coatings unit, net sales dipped 1 percent from the same period a year ago, to $537 million.

Valspar
Valspar Corp.

Paint sales in North America rose 13 percent for the second quarter after a flat first quarter, the company reported.

The company reported that sales growth in packaging, wood and coil coatings was offset by lower demand in the general industrial product line, primarily for off-road equipment, shipping container and pipeline coatings products.

The segment’s adjusted EBIT fell 8 percent to $83 million.

Restructuring Initiatives

The company also announced restructuring actions primarily focused on “improving its North American paint manufacturing footprint following the Ace paint acquisition and to continue improving profitability in its Australian business.”

These actions are expected to result in total non-recurring charges estimated at $18 million to $23 million (after tax) in fiscal 2013 and 2014, Valspar noted.

In addition, approximately $30 million of Valspar’s planned capital spending will be used to support facility consolidations, production line transfers and efficiency improvements.

When fully implemented, the company expects to generate annual savings of approximately $0.10 per diluted share by fiscal 2015.

The company’s portfolio includes:

  • Industrial OEM coatings;
  • Coatings and inks for rigid packaging;
  • Paints, varnishes and stains, primarily for the DIY market;
  • Coatings for refinishing vehicles;
  • High-performance floor coatings; and
  • Resins and colorants for internal use and for other paint and coatings.

   

Tagged categories: Architectural coatings; Coatings manufacturers; Earnings reports; OEM (Original Equipment Manufacturers); Paint and Coating Sales; Valspar; Wood coatings

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
Sherwin-Williams
 
Sherwin-Williams Water & Wastewater App
 
Our coatings and linings expertise available 24/7, allowing you to explore the best Sherwin-Williams solutions for your water and wastewater treatment facility. Android users click here. Download today!
 

 
Jotun Paints Inc.
 
Jotachar JF750 - The Time Saving Solution
 
The only mesh free solution for jet fire scenarios. Jotachar saves installation time and material costs - the next generation of epoxy passive fire protection.
 

 
PPG Protective and Marine Coatings Group
 
We Protect and Beautify the World
 
PPG is widely recognized as a world leader in protective and marine coatings, developing innovative, cutting-edge products and services.
 

 
SAFE Systems, Inc.
 
Portable Blast &
Recovery Equipment
 
Trailer or skid mounted blast and recovery equipment. Systems designed for maximum versatility, environmental compliance
and overall cost savings.
Call 1-800-634-7278
 

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

 
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.
 

 
BASF
 
New resins from BASF will have metals loving water!
 
Excellent corrosion resistance, low VOC, high gloss, thin films www.basf.us/industrialcoatings dpsolutions@basf.com 800-231-7868
 

 
Corrosion Probe, Inc.
 
From Detection to Correction
 
Corrosion Probe, Inc. has the Most Concrete Coatings Experience and Expertise. Contact us today at
860-767-4402, www.cpiengineering.com
 

 
Axxiom Manufacturing
 
Revolutionary Units
 
By integrating Schmidt's Aftercoolers with our blast pots, these systems remove moisture from air and minimize equipment footprint on jobsite.
Call 1-800-231-2085
 

 
Montipower, Inc.
 
The MBX Bristle Blaster
 
Get a 2.7 to 3.3 mil profile and a Near White Metal Clean. For info visit www.mbxit.com or call 877 629-8777
 

 
 
 

Technology Publishing Co., 2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings 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