MINNEAPOLIS – The Valspar Corp. has reported its results for the first quarter ended January 30, 2009. First-quarter sales totaled $639.5 million, a 16.4 percent decline from the first quarter of 2008.
First-quarter adjusted net income per share was $0.20 in 2009 and $0.24 in 2008, excluding non-cash adjustments of $0.03 per share for Huarun minority interest shares in 2008 and 2009, and a $0.06 per share charge in 2009 related to restructuring actions. Net income for the first quarter of 2009 was $14.2 million. First-quarter reported earnings per share in 2009 were $0.11. Net income for the first quarter of 2008 was $24.0 million. First-quarter reported earnings per share in 2008 were $0.21.
During the quarter, the company took additional steps to reduce its cost structure, an expansion of restructuring actions initiated in July 2008. The company now expects restructuring costs to total $0.35-$0.38 per share. The restructuring actions are expected to be completed by the end of the third quarter of fiscal 2009. In fiscal 2010, these steps are expected to generate annual savings of $0.20-$0.23 per share.
“Despite the global recession, earnings for the quarter were in line with our expectations,” said William L. Mansfield, Valspar Chairman and Chief Executive Officer. “Through solid execution and operational discipline, we were able to mitigate the impact of lower sales. We are meeting the challenges presented by the difficult economic environment and continue to expect fiscal-year 2009 adjusted net income per share to be in the range of $1.55 to $1.65, excluding restructuring charges.”