MINNEAPOLIS - The Valspar Corp. has reported its results for the fourth quarter and fiscal year ended Oct. 31, 2008. Fourth-quarter sales totaled $923.2 million, an 8.3 percent increase from fourth quarter of 2007.

 

The fourth quarter of 2008 consisted of 14 weeks compared to 13 weeks in 2007. Sales for the quarter increased 3.8 percent excluding the 14th week. Net income for the fourth quarter was $38.9 million. Fourth-quarter adjusted net income per share was $0.42, which excludes a $0.13 per share charge related to restructuring actions, a non-cash charge of $0.03 per share for Huarun minority interest shares and a $0.09 per share after-tax gain from the sale of assets. Fourth-quarter reported earnings per share in 2008 were $0.35. Net income for the fourth quarter of 2007 was $48.8 million. Fourth-quarter adjusted net income per share in 2007 was $0.38, which excluded a $0.10 per share after-tax gain for the sale of assets and a non-cash charge of $0.03 per share for Huarun minority interest shares. Fourth-quarter reported earnings per share in 2007 were $0.45. The adjusted earnings per share comparison for the fourth quarter is $0.42 in 2008 and $0.38 in 2007.

 

Fiscal year 2008 sales totaled $3,482.4 million, an increase of 7.2 percent. Net income for the year totaled $150.8 million. Adjusted net income per share for the year was $1.57, which excludes a $0.16 per share charge related to restructuring actions, a non-cash charge of $0.12 per share for the Huarun minority interest shares and a $0.09 per share after-tax gain from the sale of assets. Reported earnings per share in fiscal 2008 were $1.38. Net income was $172.1 million in fiscal 2007. Adjusted net income per share in fiscal 2007 was $1.58, which excludes a $0.10 per share after-tax gain for the sale of assets and a non-cash charge of $0.18 per share for Huarun minority interest shares. Reported earnings per share in fiscal 2007 were $1.50. The adjusted earnings per share comparison is $1.57 in fiscal 2008 and $1.58 in fiscal 2007.

 

"We were pleased with our performance in difficult market conditions," said William L. Mansfield, Valspar Chairman and Chief Executive Officer. "By focusing on execution and operational discipline, we gained share in key markets, improved productivity and delivered strong cash flow. During the year we generated $160 million in free cash flow, an increase of $100 million from 2007, and reduced our debt by $94 million. Our liquidity position is strong, with $90 million in cash and $340 million of unused committed bank credit facilities providing total liquidity of $430 million at year end." Mansfield also commented on the outlook for 2009. "Anticipating a global recession, we expect our 2009 adjusted net income per share to be in the range of $1.55 to $1.65, excluding restructuring charges and a non-cash charge for Huarun minority interest shares. We have aggressively lowered our cost structure and continue to focus on execution. In addition, our strong brands, focus on customers, expanded global presence and strong free cash flow position us to meet the challenges of the weak global economy."