Paint company's earnings slightly above forecast
Valspar Corp. Tuesday posted a 21 percent increase in third-quarter profits over a year ago, beating Wall Street expectations by a tad.
The Minneapolis-based paint and coating company recorded net income of $86.4 million, or 92 cents per share. Adjusted for restructuring charges of 5 cents per share, the company had earnings of 97 cents per share. Wall Street analysts were expecting 96 cents.
Valspar reported third-quarter sales of $1.08 billion, up one percent over a year ago, but below analysts' estimates of $1.13 billion. The company noted in a news release that, excluding negative currency swings affecting international business, sales were up 3 percent during the quarter.
"Looking ahead to our fourth quarter, we expect continued softness in some international markets and modest growth in North America," CEO Gary Hendrickson said in the statement. "However, we are confident the strength of our portfolio, our growth initiatives and our proven ability to drive productivity improvements will offset these challenges."
Valspar reaffirmed its earnings guidance for the remainder of the year.
Valspar’s stock in morning trading was at $52.12, down 83 cents or 1.6 percent.
Mike Hughlett • 612-673-7003