Valspar Reports Third Quarter Results
Third-quarter sales totaled $873.9 million, a 10.0 percent increase from the same period last year. Third-quarter adjusted net income per share increased to $0.70 in 2010 from $0.67 in 2009. Third-quarter adjusted net income per share for 2010 excludes a net $0.04 per share benefit from the sale of certain assets and charges related to restructuring actions. Third-quarter adjusted net income per share for 2009 excludes a $0.03 per share charge related to restructuring actions and a non-cash adjustment of $0.03 per share for Huarun minority interest shares.
Net income for the third quarter of 2010 was $75.1 million and reported earnings per share were $0.74. Net income for the third quarter of 2009 was $65.0 million and reported earnings per share were $0.61.
"We were pleased with our earnings performance despite the impact of significant raw material inflation," said William L. Mansfield, Valspar chairman and chief executive officer. "The success of our new business efforts drove our double-digit top line growth. Looking ahead, our results will continue to benefit from new business and operational discipline. We expect to deliver fiscal year 2010 adjusted net income per share in the range of $2.15 to $2.25."
During the quarter, the company also completed a transaction to purchase metal packaging coatings assets from DIC Corporation, a Japan-based specialty chemical manufacturer, and sell metal decorating inks assets to DIC. The transaction included sales and DIC's manufacturing site in Bangalore, India. Terms of the transaction were not disclosed.