Valspar Reports Second-Quarter Results
Company Reaffirms FY 2011 Guidance, Announces Actions to Reduce Cost Structure
MINNEAPOLIS, Minn. - May 16, 2011 - The Valspar Corporation (NYSE-VAL) today reported its results for the second-quarter ended April 29, 2011.
Second-quarter sales totaled $992.7 million, a 23.5 percent increase from the second quarter of 2010. Second-quarter adjusted net income per share increased to $0.64 in 2011 from $0.61 in 2010. Second-quarter adjusted net income per share in 2011 excludes $0.05 per share in acquisition-related charges and a $0.01 per share charge related to restructuring actions. Net income for the second quarter of 2011 was $56.3 million and reported earnings per share were $0.58. Net income for the second quarter of 2010 was $61.7 million.
The company announced restructuring actions related to improving the profitability of its Wattyl acquisition and further reducing the cost structure of its global wood product line. These actions are expected to result in charges to earnings of $0.30-$0.35 per share over the next 12 months and generate annual savings of $0.12-$0.14 per share by fiscal 2013.
"We were pleased with our improved sales and earnings performance for the quarter, a particularly solid accomplishment given the strength of our results in the second quarter of 2010," said William L. Mansfield, Valspar chairman and chief executive officer. "Double-digit top-line growth resulting from acquisitions, pricing and the continued success of our new business efforts helped to mitigate the impact of substantially higher raw material costs. We are continuing to raise our selling prices and taking steps to further reduce our cost structure while maintaining investments in our brands and technology. We continue to expect fiscal year 2011 adjusted net income per share in the range of $2.45 to $2.65."
Mansfield, Gary Hendrickson, president and chief operating officer, 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 12:30 p.m. Central Time May 16 through Midnight on May 30 by dialing 1-800-475-6701 from within the U.S. or 320-365-3844 from outside of the U.S., using access code 204009.
Media Contact: Mike Dougherty, (612) 851-7802
Investor Contact: Tyler Treat, (612) 851-7358
2011 Q2 Balance Sheet
2011 Q2 Key Data