Valspar’s sales for fiscal year 2012 totaled $4.03 bn, a two percent increase from fiscal year 2011. Revenues in the company’s Coatings segment increased four percent. This segment gained new business in every product line, and saw double-digit sales growth in general industrial and coil product lines. The Coatings segment includes a broad range of decorative and protective coatings for metal, wood and plastic, primarily for sale to OEM customers. Products within the Coatings segment include primers, topcoats, varnishes, inks, sprays, stains, fillers and other coatings used by customers in a wide range of manufacturing industries, including building products, appliances, furniture, transportations, agricultural and construction equipment, metal packaging and metal fabrication.
Paint segment revenues were flat for the year, reflecting weakness in China and Australia and slow economic recovery in the U.S. Despite these challenges, Valspar achieved double-digit volume growth in China with the successful introduction of a new product line for the affordable housing market. In Australia, the partnership with Masters, a regional joint venture with Lowe’s, continues to gain traction. All Masters stores feature Valspar’s Wattyl paint as the flagship paint brand and its 150-store growth plan is on target. The Valspar paint brand’s introduction of the “Love Your Color Guarantee” in the U.S. and Australia was well-received by consumers and generated positive paint sales and volumes. Through its Paints segment, Valspar offers a wide variety of products such as paints, primers, topcoats and aerosol spray paints sold primarily through retailers and distribution networks. The company sells branded and other products in the paints segment, including Valspar, Cabot, Huarun, DeBeer and House of Kolor. This segment includes architectural and automotive refinish lines.
Valspar continued to invest in fast-growing markets outside of the U.S. Sales in markets outside of the U.S. accounted for 46 percent of total company revenues. Latin America business delivered a double-digit revenue increase reflecting strength in industrial and packaging product lines and last year’s acquisition of Isocoat, a Brazilian-based manufacturer of powder coatings. Valspar’s progress in China continued with aggressive efforts to expand the Huarun and Valspar brands and the introduction of new products for the affordable housing market. The consumer paint business in China generated mid-single-digit revenue growth and high single-digit volume growth in the second half of the year.
Valspar also initiated a new partnership with B&Q, the largest home improvement retailer in the United Kingdom and Ireland. Valspar will become the flagship paint brand in all 350 B&Q retail stores in 2013. This positions Valspar for strong future growth in the European paint market.
Valspar has entered into a long-term strategic supply relationship with Ace Hardware Corporation under which Valspar will manufacture and supply Ace-branded paint products as well as make a comprehensive line of Valspar-branded paints available to more than 4,000 Ace retail locations in the United States. In addition, the two companies announced that Valspar has acquired Ace Hardware’s paint manufacturing assets, including two manufacturing facilities located near Chicago.
The relationship combines Ace’s in-store service model and neighborhood store footprint with Valspar’s national paint brand, manufacturing and distribution expertise and technology. Ace customers can expect the same quality and performance from Ace-branded paint products while also benefitting from Valspar’s color expertise, enhanced sales support for retailers and a competitively priced product assortment, the company reported.
Valspar will immediately begin manufacturing and distributing Ace’s existing portfolio of Ace-branded paint products. Over the next year, Ace and Valspar will collaborate with retail owners to enhance their paint departments. Introduction of Valspar paint products is expected to begin in the fall of 2013. Ace will retain ownership of its existing paint brand trademarks, including Clark+Kensington and Ace Paint, but Valspar will manufacture Ace’s product lines exclusively for the retailer.
YEAR ESTABLISHED: 1806
Revenue: $4.03 billion s (2011: 3.704 bn)
• Architectural coatings • General industrial • Coil coatings • Wood coatings • Automotive refinish
Gary Hendrickson, president and CEO; Rolf Engh, executive VP, general counsel and secretary; Steven Erdahl, executive VP; Anthony Blaine, senior VP; Howard Heckes, senior VP; James Muehlbauer, CFO; Brian Falline, group VP; Bernard Ouimette, senior VP; Roeland Polet, senior VP.