Valspar Reports Second Quarter Results
MINNEAPOLIS, May 14, 2007 - The Valspar Corporation (NYSE-VAL) today reported its results for the second-quarter ended April 27, 2007.
Second quarter sales totaled $808.5 million, a 5.4 percent increase from the second quarter of 2006. Net income for the second quarter was $41.5 million. Adjusted earnings per share were $0.40 for the quarter, which excludes a non-cash adjustment of $0.05 per share for Huarun minority interest shares. Reported earnings per share were $0.35. In 2006, second-quarter earnings were $47.9 million, or $0.46 per share, which included a $0.01 per share charge for manufacturing rationalization.
Sales for the first six months of fiscal 2007 were $1,503.0 million, up 7.6 percent from the same period a year ago. Net income for the first half was $65.1 million. Adjusted earnings per share for the first half were $0.63, excluding a $0.10 per share non-cash adjustment for the Huarun minority interest shares. Reported earnings per share for the first half were $0.53. First-half 2006 net income was $70.5 million, or $0.69 per share, which included a $0.02 per share charge for manufacturing rationalization. The company continues to expect fiscal year 2007 adjusted earnings per share to be at the low end of the $1.80-$1.90 range. This guidance excludes an estimated $0.18 per share non-cash adjustment for the minority interest shares.
"Results for the quarter were right in line with our expectations," said William L. Mansfield, Valspar president and chief executive officer. "We are successfully managing through the current challenges in our architectural paints and wood coatings businesses and remain confident that we will deliver on our second-half expectations."
"Our long-term growth agenda is advancing," Mansfield continued. "Our global expansion, acquisition and productivity improvement initiatives are delivering solid results and our investment in building the Valspar brand is off to a strong start."
William L. Mansfield and Lori A. Walker, vice president, treasurer and controller, 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 1:30 p.m. Central Time May 14 through Midnight on May 28 by dialing 1-800-475-6701 from with in the U.S. or 320-365-3844 from outside of the U.S., using access code 872599.
Investor Contact: Lori A. Walker, (612) 375-7350
Media Contact: Mike Dougherty, (612) 375-7802
The Valspar Corporation (NYSE:VAL) is a global leader in the paint and coatings industry. Since 1806, Valspar has been dedicated to bringing customers the latest innovations, the finest quality and the best customer service in the coatings industry.
For more information, visit www.valsparglobal.com.