MINNEAPOLIS - The Valspar Corp. has reported its results for the second quarter ended April 25, 2008. Second-quarter sales totaled $836.4 million, a 3.5 percent increase from the second quarter of 2007.
Net income for the second quarter was $40.8 million. Second-quarter adjusted net income per share was $0.41 in 2008 and $0.40 in 2007, excluding non-cash adjustments of $0.03 and $0.05 per share, respectively, for Huarun minority interest shares. In 2007, second-quarter net income was $41.5 million. Second-quarter reported earnings per share were $0.38 in 2008 and $0.35 in 2007.
"Results for the quarter were in line with our expectations and reflect the impact of operational discipline and tight control of expenses," said William L. Mansfield, Valspar Chairman and Chief Executive Officer. "Our packaging, coil and general industrial coatings product lines performed well. New business and pricing helped to partially offset the impact of rising raw material costs and a weak U.S. economy."
Looking ahead, the company now expects fiscal year 2008 adjusted net income per share to be in the range of $1.55 to $1.65. "Raw material costs have increased beyond our prior expectations, and we anticipate demand in the U.S. to remain soft for the rest of the year," said Mansfield. "We are responding with additional pricing actions and remain focused on aggressively reducing costs, gaining new business and investing in our long-term growth opportunities."