Valspar confident on momentum of US housing recovery

13 February 2013 00:03  [Source: ICIS news]

HOUSTON (ICIS)--Growth of nearly 10% in Valspar’s wood coatings segment during its fiscal 2013 first quarter is an indicator of continued recovery within the domestic housing market, the US-based coatings firm said on Tuesday.

In 2006 and 2007, that business declined leading into the recession, CEO Gary Hendrickson said during an earnings conference call. “Now it’s coming out, and we think that is a leading indicator of what’s going on in the North American housing market," Hendrickson said. "That business is perfectly correlated to the housing market.”

Existing home sales are the driver of overall architectural paint demand, according to Hendrickson, who added that new construction is a relatively small percentage. “So, to the extent that existing home sales continue to be positive, I think the US paint market is in for a good year in 2013,” he said.

Despite a slight overall first-quarter net income decline, the company’s North American wood coatings and US consumer paint division grew in terms of volume and revenue during the period.

“The good performance of these two businesses indicates a continued recovery in the US housing market that we expect will maintain momentum as the year progresses,” Hendrickson said.

Hendrickson also mentioned eventual profits from Valspar’s acquisition of two paint plants from Ace Hardware, saying that purchase and the company’s retail programme “underscore our confidence in the US housing market. We believe that any investment we make now in the recovery of the US housing market is a good one for the long term.”

($1 = €0.75)

For more on TiO2, visit the ICIS Plants & Projects database


By: Larry Terry
1 713 525 2653



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index