valspar051308
On the homepage
Food
Out There
Reusse's Turkey
NewsBreak
Soft demand hits Valspar's profit and its outlook
The Minneapolis paintmaker said today that it's being hurt by higher costs for raw materials and softening demand because of the economy.
Print this story
E-mail this story
Save to del.icio.us
Share on Facebook
Share on Digg
Minnesota business by the numbers
See Minnesota's top earning companies, CEOs and non-profits
More from Business
Valspar Corp., the Minneapolis-based paintmaker, said Monday that second-quarter earnings declined 1.6 percent from a year ago, falling just short of analyst estimates. The company also cut its full-year earnings outlook, citing higher costs and soft demand.
In the quarter ended April 25, Valspar earned $40.8 million, or 38 cents a share, compared with $41.5 million, or 35 cents a share, a year ago. Revenue was up 3.5 percent, to $836.4 million.
Excluding a non-cash expense related to Valspar's minority shares in Huarun Paints, Valspar earned 41 cents a share in the quarter, compared with 40 cents a share a year ago. Analysts had expected 42 cents a share, according to Thomson First Call. Revenue also fell short of the consensus analyst expectation of $865.6 million.
For the full fiscal year, Valspar said it now expects adjusted net income per share of $1.55 to $1.65, down from the company's previous estimate of $1.65 to $1.75.
"Raw material costs have increased beyond our prior expectations, and we anticipate demand in the U.S. to remain soft for the rest of the year," Valspar CEO William Mansfield said in a prepared statement. "We are responding with additional pricing actions, and remain focused on aggressively reducing costs, gaining new business and investing in our long-term growth opportunities."
In trading Monday, Valspar shares opened lower, then recovered to close at $21.88, up 1 cent.
STAFF REPORT
2nd quarter FY2008, 4/25
2008 2007 % chg. Revenue $836.4 $808.5 +3.5 Income 40.8 41.5 -1.6 Net/cm 37.9 36.4 +4.1 Earn/share 0.38 0.35 +8.66 months
Revenue $1,601.5 $1,503.0 +6.6 Income 64.9 65.1 -0.4 Net/cm 59.0 55.0 +7.4 Earn/share 0.59 0.53 +11.3Figures in millions except for earnings per share.
Recent Business stories
AP Source: No suitors have emerged to buy Saab after specialty car maker pulled out of deal - May 12, 2008
AP Source: No suitors have emerged to buy Saab after specialty car maker pulled out of deal - General Motors Co. has not talked with any other potential buyers for the Swedish Saab brand since a specialty car maker pulled out of a deal to buy it this week, a person briefed on GM's plans said Wednesday. More
- Ponzi scheme suspect liked cars -- and his submarine
- 2 charged with running $190M Ponzi scheme
- China executes 2 for role in tainted milk scandal
- Toyota to replace gas pedals on 4 million vehicles
- 3 state firms are accused of forging signatures
- 'Christmas creep' pushes shopping ever earlier
- No verdict; Petters jury to resume deliberations Monday
Blog: Patent Pending
Lights out at U energy conference. Irony police notified.
Just as Lawrence Kazmerski, a top official at the National Renewable Energy Laboratory, was about to give the keynote address at the University of Minnesota's annual E3 conference at the RiverCentre in St. Paul, the lights went out, bathing the audience in darkness and a deep sense of irony.
Comment on this story | Be the first to comment | Hide reader comments