Valspar sales rise 8.8%, net income up 24% in 1Q
By Furniture Today Staff -- Furniture Today, February 24, 2003
Minneapolis — Valspar, a major supplier of furniture finishes and coatings, said sales in its first quarter rose 8.8% and net income jumped nearly 24%.
The company said demand remained weak in its industrial segment, which includes furniture finishes and coatings, but said the segment managed a sales gain "in the high single digits" by taking market share away from competitors.
"We believe that our growth and cost initiatives will continue to augment our performance in this challenging business environment, and that we remain on track to achieve 15% earnings growth in 2003," said Richard Rampala, chairman and chief executive officer.
The company doesn't break out sales by business unit, but said total sales were $469 million for the quarter ended Jan. 24, compared with $431 million in last year's first quarter. Net income totaled $15.6 million, versus $12.6 million in the comparable period a year ago.
In a conference call with securities analysts, Rampala said the company is building a new furniture coatings plant in Asia. "We had a decent wood (finish) business in North America, but the bulk of that growth will come from Asia," he said.
| Quarter ended 1/24 | 2003 | 2002 | Change |
|---|---|---|---|
| Sales | $468,971,000 | $431,040,000 | 8.8% |
| Operating income | 37,147,000 | 33,540,000 | 10.8% |
| Net income | 15,618,000 | 12,608,000 | 23.9% |
| Earnings per share | 0.30 | 0.25 | 20.0% |
