Valspar sales outpace profits in quarter, six months
Janice Chamberlain -- Furniture Today, June 20, 2005
Minneapolis — Coatings supplier Valspar reported sales bounced up 10.6% and 10.8%, respectively, in the quarter and six months ended April 29.
Quarterly sales reached $705.9 million, up from $638.4 million in the comparable year-earlier period, and six-month sales rose to $1.3 billion from $1.1 billion in the same period in 2004.
Net income in the latest quarter inched up 0.4% to $39.2 million from $39.1 million a year ago. Profits in the first six months slid 11.4% to $50.9 million, or 97 cents per share, compared with $57.5 million, or $1.09 per share, in the year-earlier period.
The most recent six months benefited from a 4 cents per share favorable lawsuit settlement, and a lower tax rate, which contributed 3 cents per share to Valspar's earnings.
Chairman and CEO William Mansfield said, "As expected, rising raw material costs have continued to constrain our financial results. We have responded with across-the-board increases in selling prices and continued focus on expense controls.
"As a result, we have made considerable progress in restoring our margins and expect a significant improvement in our second-half financial performance," he said.
In the latest quarter, Valspar's operating margin was 9.7%, up substantially from the 5.5% achieved in its first quarter ended Jan. 28.
| Quarter ended 4/29 | 2005 | 2004 | Change |
|---|---|---|---|
| Sales | $705,942,000 | $638,387,000 | 10.6% |
| Operating income | 68,391,000 | 73,855,000 | (7.4%) |
| Net income | 39,241,000 | 39,089,000 | 0.4% |
| Earnings per share | 0.75 | 0.74 | 1.4% |
| 6 months ended 4/29 | 2005 | 2004 | Change |
| Sales | $1,263,086,000 | $1,139,978,000 | 10.8% |
| Operating income | 99,086,000 | 114,107,000 | (13.2%) |
| Net income | 50,939,000 | 57,475,000 | (11.4%) |
| Earnings per share | 0.97 | 1.09 | (11.0%) |
