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Valspar Reports First-Quarter Results

Published on 2010-02-18. Author : SpecialChem

MINNEAPOLIS -- The Valspar Corporation reported its results for the first-quarter ended January 29, 2010.

First-quarter sales totaled $672.4 million, a 5.1 percent increase from the same period last year. Adjusted net income per share was $0.36 in 2010 and $0.20 in 2009, excluding charges related to restructuring actions of $0.02 and $0.06, respectively, and a non-cash adjustment of $0.03 per share for Huarun minority interest shares in 2009. 2010 results reflect a $0.04 per share benefit from the settlement of certain tax audits. Net income for the first quarter of 2010 was $33.9 million and reported earnings per share were $0.34. Net income for the first quarter of 2009 was $14.2 million and reported earnings per share were $0.11.

"Improved top-line results, particularly in our Paints segment and in Asia, contributed to our strong earnings performance," said William L. Mansfield, Valspar chairman and chief executive officer. "New business and share gains, together with our focus on productivity and cost control, are helping to offset ongoing weakness in U.S. industrial markets. Looking ahead to the remainder of the year, we expect top-line growth consistent with our current results and continuing upward pressure on raw material costs. We are confident that we will deliver fiscal year 2010 adjusted net income per share in the range of $1.85 to $2.05, excluding restructuring charges."

About Valspar Corporation:

The Valspar Corporation 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.

Forward-looking statements

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 our control and could cause actual results to differ materially from such statements. These uncertainties and other factors include, but are not limited to, changes in general economic conditions both domestic and international, including recessions and other external economic and political factors, which may adversely affect our business, the value of our investments, the financial stability of our customers and suppliers and our ability to obtain financing; dependence of internal earnings growth on economic conditions and growth in the domestic and international coatings industry; competitive factors including pricing pressure and product competition; 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 our relationships with customers and suppliers; risks and uncertainties associated with operations and achievement of growth in developing markets, including China and Central and South America; 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; changes in accounting policies and standards and taxation requirements such as new tax laws or revised tax law interpretations; the nature, cost and outcome of pending and future litigation and other legal proceedings; civil unrest and the outbreak of war and other significant national and international events; and other risks and uncertainties. The foregoing list is not exhaustive, and we disclaim any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements.

Source: Valspar Corporation

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