By Tess Stynes
Valspar Corp.'s (VAL) fiscal fourth-quarter earnings fell 14% as
stronger paint sales were offset by charges for restructuring and
other items.
For the recently started fiscal year, the paint-and-coatings
company forecast per-share earnings of $3.95 to $4.15 and total
sales growth of 7% to 9%. Analysts polled by Thomson Reuters most
recently expected per-share profit of $4.12 and revenue growth of
9%.
Chairman and Chief Executive Gary E. Hendrickson in August said
that its consumer paint, packaging and wood-product lines continued
to see strong volume growth thanks to the company's business
initiatives. However, its general industrial markets and some
regions abroad continued to face economic pressures from the
economy.
On Tuesday, Mr. Henderson stated that in the latest period
Valspar "saw the benefit of new business wins in all product lines.
These wins were partially offset by weakness in certain end markets
and international regions, as has been the case throughout
2013."
Net sales in Valspar's paints segment increased 13% to $449
million, primarily driven by strong growth in the U.S. and new
business wins.
Last month rival Sherwin-Williams Co. (SHW) posted
better-than-expected third-quarter earnings, also with a boost from
stronger paint sales volume at its stores.
For the period ended Oct. 25, Valspar reported a profit of $63.5
million, or 72 cents a share, down from $73.8 million, or 79 cents
a share, a year earlier. Excluding restructuring- and
acquisition-related charges and other items, adjusted earnings were
up at 97 cents from 86 cents. Revenue increased 8.2% to $1.1
billion.
Analysts polled by Thomson Reuters recently expected per-share
earnings of 91 cents and revenue of $1.09 billion.
Shares closed Monday at $70.67 and were inactive in recent
premarket trading. Through the close, the stock is up 27% from a
52-week low in late November 2012.
Write to Tess Stynes at tess.stynes@wsj.com
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