Valspar sees weaker Q4 on US housing slump

02 October 2007 03:25  [Source: ICIS news]

SINGAPORE (ICIS news)--US-based Valspar has lowered its fourth quarter profits forecast due to continued weakness in the US housing market impacting its paints and coatings businesses, it said late on Monday.

Fourth-quarter 2007 adjusted earnings for the quarter ending 26 October were expected to be in the range of $0.47-0.50 (€0.33-0.35) per share, compared with $0.51 per share in the same quarter last year.

Full-year adjusted earnings per share were expected at $1.67-1.70 compared with $1.71 last year.

The paints and coatings company previously reported fourth quarter earnings before income taxes of $72.7m in 2006, and then-projected fiscal 2007 earnings per share stood between $1.80-1.90.

“Our businesses in markets outside of the US, including our recent acquisitions, continue to perform well,” Valspar chairman, president and CEO William L Mansfield said in a statement.

Valspar expects the weak sales environment to continue impacting its domestic business into 2008, but will take actions to reduce costs and inventory levels, he added.

($1=€0.70)

By: Joyce Khoo
+65 6780 4359

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