14 February 2012 15:14 [Source: ICIS news]
HOUSTON (ICIS)--Valspar’s fiscal 2012 first-quarter net income rose 67% year on year to $58.8m (€44.7m) on improved margins and a 5.1% year-on-year increase in sales, the US-based paint and coatings firm said on Tuesday.
Valspar said operating margins improved through better pricing, productivity gains and cost management.
Valspar’s sales for the three months ended 27 January 2012 rose to $885.6m, from $842.4m in the same period a year earlier.
First-quarter gross profit was up 13% to $293.3m. Gross profit as a percentage of sales was 33.1%, compared with 30.7% in the same period a year earlier.
“We are pleased to report strong earnings for the quarter, which were the result of excellent execution and generally in line with our expectations,” CEO Gary Hendrickson said.
Hendrickson said that “despite higher interest expense and challenging global markets” Valspar is raising its full-year fiscal 2012 earnings per share guidance to $2.92-$3.12.
This compares with a previous guidance, issued last November, of 2012 earnings per share of $2.87-$3.07.
Valspar's share price was up 4.1% to $45.82 at 09:37 in New York.
($1 = €0.76)
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