Valspar Reports First Quarter Earnings
Valspar Reports First Quarter Earnings
The Valspar Corporation (NYSE-VAL), a leading coatings manufacturer, today reported net income for the first quarter ended January 27, 2006 of $22,541,000 or $0.22 per diluted share versus net income of $11,698,000 or $0.11 per diluted share for the comparable period last year. This year's results include expenses of $0.01 per diluted share related to the manufacturing rationalization plan announced in 2005 and $0.01 per diluted share related to expensing of stock based compensation. Sales for the quarter increased 13.0% to $629,765,000, compared to $557,144,000 last year.
Commenting on the first quarter, William L. Mansfield, President and Chief Executive Officer, said, "We are pleased with our first quarter results in light of the challenging raw material environment. Both our Paint and Coatings segments delivered strong sales growth in the quarter with exceptional growth in our Architectural product line due to continued retail sales momentum and favorable weather conditions. Margin improvement reflects significant progress in recovering raw material cost increases experienced over the past two years."
Commenting on the outlook for the balance of the year, Mr. Mansfield said, "We expect full year sales growth of 9-10%, second quarter earnings in the range of $0.39 to $0.43 per share and full year earnings per share in the range of $1.45 to $1.55. These earnings estimates include expensing stock based compensation and the net cost of manufacturing rationalization."
For further information, contact Lori A. Walker, Vice President, Treasurer and Controller at Valspar / 612-375-7350.
Note: Valspar hosted a conference call on Monday, February 13th. Those who were unable to participate during the live broadcast can access an archive of the call on the Valspar website. A taped replay of the call can also be accessed by dialing 1-800-475-6701 in the U.S. or 320-365-3844 outside the U.S. using access code 816746.
This press release contains certain "forward-looking" statements. These forward-looking statements are based on management's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company that could cause actual results to differ materially from such statements. These uncertainties and other factors include, but are not limited to, dependence of internal earnings growth on economic conditions and growth in the domestic and international coatings industry; risks related to any future acquisitions, including risks of adverse changes in the results of acquired businesses and the assumption of unforeseen liabilities; risks of disruptions in business resulting from the integration process and higher interest costs resulting from further borrowing for any such acquisitions; our reliance on the efforts of vendors, government agencies, utilities and other third parties to achieve adequate compliance and avoid disruption of our business; risks of disruptions in business resulting from the Company's relationships with customers and suppliers; unusual weather conditions adversely affecting sales; changes in raw materials pricing and availability; delays in passing along cost increases to customers; changes in governmental regulation, including more stringent environmental, health and safety regulations; the nature, cost and outcome of pending and future litigation and other legal proceedings; the outbreak of war and other significant national and international events; and other risks and uncertainties. The foregoing list is not exhaustive, and the Company disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements.