Valspar News
MAY-12-2008
Valspar Reports Second Quarter Results
Company Updates FY 2008 Guidance
MINNEAPOLIS, Minn., May 12, 2008 - The Valspar Corporation (NYSE-VAL) today reported its results for the second-quarter ended April 25, 2008.
Second-quarter sales totaled $836.4 million, a 3.5 percent increase from the second quarter of 2007. Net income for the second quarter was $40.8 million. Second-quarter adjusted net income per share was $0.41 in 2008 and $0.40 in 2007, excluding non-cash adjustments of $0.03 and $0.05 per share, respectively, for Huarun minority interest shares. In 2007, second-quarter net income was $41.5 million. Second quarter reported earnings per share were $0.38 in 2008 and $0.35 in 2007.
"Results for the quarter were in line with our expectations and reflect the impact of operational discipline and tight control of expenses" said William L. Mansfield, Valspar chairman and chief executive officer. "Our packaging, coil and general industrial coatings product lines performed well. New business and pricing helped to partially offset the impact of rising raw material costs and a weak U.S. economy."
Looking ahead, the company now expects fiscal year 2008 adjusted net income per share to be in the range of $1.55 to $1.65. "Raw material costs have increased beyond our prior expectations, and we anticipate demand in the U.S. to remain soft for the rest of the year," said Mansfield. "We are responding with additional pricing actions, and remain focused on aggressively reducing costs, gaining new business and investing in our long-term growth opportunities."
Mansfield and Lori A. Walker, senior vice president and chief financial officer, will conduct a conference call for investors at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) today. The call can be heard live over the Internet at Valspar's website at www.ValsparGlobal.com under Investor Relations. Those unable to participate during the live broadcast can access an archive of the call on the Valspar website. A taped delay of the call will also be available from 12:00 p.m. Central Time May 12 through Midnight on May 27 by dialing 1-800-475-6701 from within the U.S. or 320-365-3844 from outside of the U.S., using access code 921998.
Investor Contact: Tyler N. Treat, (612) 375-7358
Media Contact: Mike Dougherty, (612) 375-7802
