Along with announcing its third quarter financial performance, Valspar’s president and CEO, William L. Mansfield, said the company will reduce its manufacturing capacity worldwide by approximately 10% by the end of 2006.
For the third quarter ended July 29, Valspar’s sales rose 10.7% to $725.4 million compared to last year’s third quarter, with net income reported at $45.7 million versus $44.9 million for the comparable period last year. Third quarter results include after tax charges of $2 million associated with the planned closure of seven manufacturing facilities, according to the company.
Mansfield said the third quarter charge is the first phase of a “broad-based strategy to reduce our manufacturing capacity and enable us to better utilize our remaining plants.”
Plans call for reducing manufacturing capacity worldwide by approximately 10% “in order to focus our capital investments on our best facilities, increase efficiency and improve our ability to service and support our customers,” Mansfield said.
Valspar’s income for the first nine months of fiscal 2005 was $96.6 million compared with $102.3 million for the same period a year ago. Sales for the first nine months rose 10.7% to $1.98 billion compared to $1.79 billion during the comparable period a year ago.