YEAR ESTABLISHED: 1806
HEADCOUNT: 8,788 t (2008: 9,341)
Coatings REVENUEs: $2.654 billion t (2008: $3.168)
TotaL REVENUEs: $2.879 billion t (2008: $3.482)
net income: $160 million s (2008: $150)
R&D Budget: $91 million t (2008: $96)
• Coatings Segment: 55%
• Paints Segment: 37%
• Other Segment: 8%
William Mansfield, chairman and CEO; Gary Hendrickson, president and COO; Rolf Engh, executive VP, general counsel and secretary; Steven L. Erdahl, executive VP; Anthony L. Blaine, senior VP; Howard Heckes, senior VP; Lori A. Walker, senior VP and CFO; J.R. Benites, group VP; Brian Falline, goup VP; Bernard Ouimette, group VP; James Randolph, group VP.
Valspar’s net sales for the year fell 17.3 percent to $2.879 billion, reflecting the impact of the global recession. Sales in the Paints segment declined 4.9 percent to $1.072 billion. The Paints segment includes a wide variety of products such as paints, primers, topcoats and aerosol spray paints sold primarily through retailers and distribution networks. It 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 product lines.The firm’s North America architectural product line posted increased sales for the year, while the overall paint market declined more than 10 percent.
Coatings segment sales were down 22.9 percent to $1.582 billion. The Coatings segment includes a broad range of decorative and protective coatings for metal, wood and plastic, primarily for sale to original equipment manufacturing (OEM) customers. Products within the Coatings segment include primers, top coats, varnishes, inks, sprays, stains, fillers and other coatings used by customers in a wide range of manufacturing industries, including building products, appliances, furniture, transportation, agricultural and construction equipment, metal packaging and metal fabrication. Valspar utilizes a wide variety of coatings technologies to meet its customers’ coatings requirements, including electrodeposition, powder, solvent−based, waterborne and UV light−cured coatings. This segment includes the packaging product line and three industrial product lines: coil, general industrial and wood. According to the company, the performance of its global packaging product line helped to mitigate the impact of lower revenues in its industrial product lines.
Net income in 2009 totaled $160.2 million, up $9.4 million from $150.8 million in 2008. The company said these positive results were due to an improved cost-price ratio, higher efficiency in its operations from restructuring and productivity actions, and good control of expenses.
In 2009, Valspar expanded its global automotive color operations by opening a color technology center in Shunde, China. Establishing a color technology center in this location enables Valspar to offer more service options to its automotive customers in Asia Pacific and Australia. The center is designed to increase the quantity of available colors for automotive customers while at the same time ensuring that common technology, methods and procedures are being practiced. The center plans to develop 6,000 colors the first year with plans to grow to a capacity of 9,000 colors per year. The center includes employees skilled as colorists, sprayers and color information experts. The new color technology center will also support global color development projects for Valspar’s automotive refinish brands including De Beer and Valspar Refinish.
Also during the year, in response to consumer demand, Valspar introduced 24 new paint colors to its Laura Ashley Home collection, available in Valspar Signature Colors. The updated colors range from soft peaches and corals, to deep red, muted purple, and teal, adding intriguing colors with depth while maintaining the Laura Ashley aesthetic of contemporary English elegance. The new collection is comprised of a mix of light, calm, summery tones along with deep reds, blues and purples. These colors can be used alone or combined to create a classic, yet feminine atmosphere synonymous with the Laura Ashley brand.
Supporting Habitat for Humanity
During 2009, The Valspar Corporation Foundation extended its long-standing relationship with Habitat for Humanity International with a multi-year commitment totaling more than $20 million in cash and paint donations. The Valspar Foundation will provide paint to Habitat affiliates across the U.S. and financial support to build Habitat’s A Brush With Kindness program, an effort that assists families in need, into a nationwide program. The Valspar Foundation and Habitat for Humanity International launched their national partnership in 2002. With this extended commitment, The Valspar Foundation’s paint and cash partnership with Habitat for Humanity International will reach nearly $40 million by 2012. Valspar makes its highest quality paint available to all Habitat affiliates in the United States and works with them in Brazil, China, South Africa, Thailand and Vietnam.