Merger-related expenses ate into Valspar's fourth-quarter results, but the Minneapolis-based company still eked out a 1 percent increase in profits.
Earnings for the quarter were $104 million, or $1.27 a share, up 1 percent over the same period a year ago. Analysts were expecting $1.50 a share. However, the stock still gained 5 cents to close at $103.69 a share.
The fourth-quarter income includes about $3 million in expenses associated with the acquisition of Valspar by Cleveland-based Sherwin-Williams, and about $5 million for restructuring and other asset impairment charges. Those charges negatively affected the fourth-quarter EPS figure by about 10 cents.
Net income for the year was $353 million, or $4.36 per share, down 12 percent from the year before. It included about $19 million in expenses associated with the merger.
In March, Cleveland-based Sherwin-Williams and Valspar agreed to combine in a deal valued at $11.3 billion. Valspar shareholders approved the deal in June.
Both sides are waiting for final approval from regulators.
On Monday, the companies issued a joint statement in response to rumors about the deal, including a New York Post story quoting unnamed sources that the Federal Trade Commission has been aggressively vetting the deal and may require more actions before approving it.
Both companies confirmed they are cooperating fully with the FTC and that they still expect the deal will close by the end of the first quarter of 2017.
For the quarter, Valspar reported sales of $1.11 billion, down 4 percent for the year. Sales for the full fiscal year ended Oct. 28 were $4.2 billion, down 5 percent from the year before. Sales for the year, like with other multinational companies were affected by foreign currency translation that in Valspar's case negatively affected net sales by 3 percent.
Patrick Kennedy • 612-673-7926
