Durability + Design

Building Performance and Aesthetics

A Product of Technology Publishing
JPCL/PaintSquare | D+D | Paint BidTracker

Subscribe to D+D Magazine

Paint and Coatings Industry News

Main News Page


Valspar Paints It Black in 2012

Wednesday, November 21, 2012

More items for Coatings Technology

Comment | More

The Valspar Corp. is giving thanks this week with a year-end financial report that reverses the red-ink performance that closed fiscal 2011.

Fourth-quarter sales were flat, but share prices rose and sales improved for the year overall, completing the Minneapolis-based paint and coatings maker’s rebound from the massive year-ending loss of last year.

Valspar consumer paints
Photos: Valspar Corp.

Valspar's consumer brands include Guardsman, Cabot Stain, Duramax, Medallion, Devine Color, PlastiKote, Valspar interior and exterior primers and paints, and Quikrete coatings.

Fiscal year 2012 sales totaled $4.02 billion for the year ending Oct. 26, a two percent increase from fiscal year 2011, Valspar reported Tuesday (Nov. 20) in delivering its fourth-quarter and full-year results.

Adjusted net income per share increased by 24 percent to $3.28 in 2012 from $2.65 in 2011, excluding $0.18 per share in restructuring charges.

Reported net income for fiscal year 2012 was $292.5 million, or $3.10 per share.

Turnaround Time

The numbers were a marked improvement from a year ago, when the world’s sixth-largest paint and coatings company reported a net loss of $295.72 million ($3.18 per share) for the fourth quarter, compared to net income of $51.3 million ($0.51 per share) for the fourth quarter of 2010. The reported net loss for fiscal year 2011 was $138.6 million or $1.47 per share.

This year, however, has seen steady improvement. Valspar’s first quarter brought double-digit gains and a brighter full-year earnings outlook. The second quarter showed solid sales increases. Third-quarter growth was slower, but the previous gains held.

Valspar consumer

Valspar many consumer brands include Guardsman, Devine Color and Cabot Stain.

Valspar's extensive consumer brands include Valspar, Medallion, Duramax, Devine Color and PlastiKote paints, stains and primers; Cabot Stain, Guardsman and McCloskey Man O'War wood products; and Quikrete Coatings. Its high-performance architectural coatings consist of an extrusion coating line and coil surface coatings.

Valspar's protective line includes coatings for oil and gas pipeline, tanks, utilities, containers, and concrete-reinforcing steel.

Q4: Sales Slip

Fourth-quarter sales totaled $1.02 billion, compared to $1.05 billion for the fourth quarter of 2011. Excluding currency impact, sales were flat in the quarter.

Fourth-quarter adjusted net income per share was $0.86 in 2012, up two cents from 2011. However, the $0.84 of 2011 included $0.09 from a one-time non-recurring benefit from favorable tax rulings. In 2012, fourth-quarter adjusted net income per share in 2012 excludes $0.07 per share in restructuring charges.

Reported net income for the fourth quarter of 2012 was $73.8 million or $0.79 per share.

Overcoming Challenges

Valspar chairman and CEO Gary E. Hendrickson emphasized the company’s earnings picture and new business.

“We are pleased to deliver our fourth consecutive year of double-digit earnings growth,” Hendrickson said. “We overcame the challenge of uneven global markets by winning significant new business and through a relentless focus on productivity.

“We continued to invest in our brands and innovative technology to secure long-term growth. In addition, we returned cash to shareholders by repurchasing 5.7 million shares and increased our dividend for the 34th consecutive year.”

‘Uneven’ Times Ahead

Hendrickson laid out the pluses and minuses ahead for 2013.

“We expect uneven global demand to continue, but we are well-positioned for growth in both our Coatings and Paints segments,” he said. “We have a strong new product pipeline to help gain new market share.

“Additionally, our productivity initiatives and operating discipline will support further margin expansion. We estimate fiscal 2013 net income per share to be in the range of $3.65 to $3.85, delivering another year of double-digit earnings growth.”

This was Valspar’s last earnings report under the leadership of CFO Lori A. Walker, who has announced her retirement.

 

   

Tagged categories: Business operations; Coatings manufacturers; Earnings reports; Economy; Finance; Valspar

Comment Join the Conversation:

Sign in to our community to add your comments.

SSPC: The Society for Protective Coatings
http://www.sspc.org/

Join SSPC and Enhance
Your Career !


Dumond Chemicals Inc.
LEAD STOP®
Lead Encapsulating Compound

is a thick elastomeric coating that is made to be a long lasting barrier over lead-based paint. LEAD STOP® provides a protective barrier coat that seals and locks in lead that is contained in old lead-based paints on previously painted surfaces.


BASF
New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films basf.us/industrialcoatings
polyorders@basf.com
800-231-7868


Coatings For Industry, Inc.
For Tough Environments,
The Toughest Protection

A workplace exposed to vehicle traffic, fuel, and other harsh chemicals needs a floor coating that stands up to daily abuse. Wearcoat 100 high-build polyurethane provides superior protection.


KTA-Tator, Inc. - Corporate Office
KTA Inspection Instruments

Eliminate Application Uncertainties:
• Moisture Content
• Ambient Conditions
• Surface Preparation
• Coating Thickness
Call 1-800-KTA-GAGE
(800-582-4243)


PPG  Architectural Coatings / Porter Paints / PGH Paints
Property Maintenance Solutions

Glidden Professional at The Home Depot® provides property managers with professional paint recommendations, project planning and FREE jobsite delivery.


Arroworthy
ArroWorthy's Handcrafted Professional Brushes

One Dip of paint with our handcrafted semi-oval Rembrandt brush, you'll see why ArroWorthy makes a professional brush of unrivaled quality and performance.

 
 
 
Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker JPCL Europe

 
EXPLORE D+D:      Interact   |   Blogs   |   Resources   |   Buying Guides   |   Webinars   |   White Papers   |   Classifieds
GET D+D:      Subscribe   |   Advertising Media Kit
KNOW D+D:      About D+D   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
 

© Copyright 2010-2014, Technology Publishing, Co., All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com