Valspar to Record Earnings Charge Related to Service Contracts
The company's fourth quarter ended Oct. 31. The furniture protection plans are service contracts for furniture repair offered at the retail level.
Chairman and CEO Richard M. Rompala said the company's coatings product lines are "performing well," but its furniture-protection plans "have experienced higher-than-expected claims." He said the company has responded with operational changes, including the discontinuation of sales of a comprehensive furniture-protection plan that Valspar assumed with the acquisition of Lilly Industries Inc.
The earnings charge is related to anticipated costs due to future claims involving the discontinued program.
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