Boston, MA 05/20/2014 (wallstreetpr) – The Valspar Corporation (NYSE:VAL) announced the results for the second quarter of fiscal year 2014.
The company announced net sales to be as much as $1.1 billion, which is a rise of almost 10% as compared to the same quarter results of last year. Its adjusted net income for the reported quarter is $93 million, which is comparable to the same period results of prior year which was $83 million. Earnings per diluted share, exclusive of nonrecurring items, increased to $1.07 from last year’s $0.91.
Paints Segment
The Valspar Corporation (NYSE:VAL) reported an increase of 8% in net sales in its Paints division which amounted to $472 million in the second quarter of the year. In addition, it announced an increase in volumes across most geographical areas such as Australia, China and the U.S. In total, growth in volume was reported to be 10%. The adjusted earnings in this segment were $57 million. This is less than previous years’ results because of expansion on advertising and marketing expenses which were aimed at supporting new retail programs.
Coatings Segment
The leading paint and coatings company reported an increase of 12% in its Coatings unit in the second quarter of the year. Apart from take- over, volumes in this division was reported to rise by 4%. Adjusted EBIT in the segment increased by 21% to $101 million. This is on account of acquisitions, enhanced sales mix, higher volumes as well as productivity initiatives.
The Valspar Corporation (NYSE:VAL) reported its full year adjusted EPS guidance to be in the range of $3.95 and $4.15. The company’s Chairman and Chief Executive Officer, Gary E. Hendrickson, said that the company has reported strong results in both the segments which have been a direct impact of its strategy involving acquisitions and enhancing productivity.
Valspar’s Board of Directors has announced a quarterly dividend of as much as $0.26 a share on its stock which will be payable on June 13 to shareholders of record on June 2.
