Valspar 2Q profit edges up, revenue steady
MINNEAPOLIS (AP) — Valspar said Tuesday that its fiscal second-quarter net income rose slightly as paint sales climbed in North America.
The company anticipates that the U.S. housing market recovery should help its performance during the year's second half.
Valspar earned $76.9 million, or 84 cents per share, for the three months ended April 26. That compares with $76.5 million, or 80 cents per share, a year ago.
Removing certain items, earnings were 91 cents per share. Analysts polled by FactSet expected adjusted earnings of 90 cents per share, on average.
Revenue was basically flat at $1.03 billion, missing Wall Street's estimate of $1.05 billion.
Paint sales in North America rose 13 percent in the quarter, while sales for the segment increased 3 percent to $438 million. Sales for the coatings unit dipped 1 percent to $537 million.
Chairman and CEO Gary Hendrickson said in a statement that business improved in the U.S, helped by solid performances from its consumer paints, packaging, wood and coil products. He said higher sales for packaging, wood and coil coatings was offset by lower demand in the general industrial product line, mostly for off-road equipment, shipping container and pipeline coatings products.
Volumes climbed 7 percent in the quarter.
Valspar Corp. still expects fiscal 2013 earnings between $3.60 and $3.80 per share. Analysts foresee earnings of $3.68 per share.
Its shares fell 3 cents to $67.83 in premarket trading about a half-hour before the market opening.