Edited from: “Fourth-quarter adjusted net income per share increases 10.5% from 2007, October 2008”, “JP Morgan cuts US paint maker Valspar forecast”, 25 November 2008, ICIS news and company website
Valspar reported sales of $3.5bn (fiscal-year ended 31 October 2008), an increase of 7.2%. "We were pleased with our performance in difficult market conditions", says chairman and chief executive officer, William Mansfield.
"By focusing on execution and operational discipline, we gained a share in key markets, improved productivity and delivered strong cash flow”, continues Mansfield.
However, in November 2008, JP Morgan reduced Valspar’s 2009 earnings per share (EPS) forecast to $1.55 from $1.75, due to expected sharp declines in demand for the period.
Echoing broad sentiment about the global economy, Valspar stated that its “corporate picture would worsen before it improves”.
"In North America, we've closed four manufacturing plants and continue to reduce our cost structure”, says Mansfield.
The company has also cut its workforce by 7% since January 2008, and it expects the number to grow to 10% by the time its restructuring operations are complete.
Investing in technology and building on its brands will remain a key area of its ongoing strategy for achieving profitable growth on a global basis. A top priority in 2009 will be executing its manufacturing consolidation plan, which will allow it to focus on its “best” facilities, increase efficiency and improve its ability to service its customers without limiting its capacity to grow.
Looking ahead, Valspar expects 60% of its business, packaging, architectural, automotive refinishing and Huarun Paints in China to perform well in 2009, while it believes its coil, industrial and wood products businesses will face more intense demand contraction.
The company will further continue to identify and integrate acquisitions that closely relate to its core businesses, add to or improve product lines or technologies and/or expand its business geographically.
“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”, says Mansfield.
Its key strategic points include:
Being number 1 or number 2 and a technology leader in each of its target markets.
Be in the top five in global sales.
Be the leader in sales growth, earnings growth and return on investment (ROC).
Be the lowest cost supplier through integrating technology and productivity improvements.
Be environmentally responsible.
Establish an accident-free work environment.
ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales.
A PDF of the ICIS Top 100 Chemical Companies is available for download on ICIS connect.
See the article and analysis of the ICIS Top 100 on ICIS news.
Financial highlights: Valspar, year ended 31 October
|
|
2009 |
2008 |
2007 |
2006 |
2005 |
|
Sales ($ m) |
2,879 |
3,482 |
3,249 |
2,978 |
2,714 |
|
Operating Profit ($ m) |
291 |
293 |
310 |
307 |
271 |
|
Net Profit ($ m) |
160 |
151 |
172 |
175 |
148 |
|
Total Assets ($ m) |
3,511 |
3,520 |
3,452 |
3,192 |
2,732 |
|
Diluted earnings per share ($) |
1.49 |
1.38 |
1.50 |
1.50 |
1.71 |
|
Number of Employees |
9,500 |
9,500 |
9,946 |
9,556 |
7,540 |
Currency Converter by
OANDA.com, The Currency Site.
Valspar
Company Structure
Valspar provides coatings, paints, varnishes, inks and coating intermediates to a wide variety of customers. Its products range from varnishes and stains for the do-it-yourself (DIY) and professional markets to coatings and inks for rigid packaging, such as food and beverage cans to ultraviolet (UV) varnishes, water based varnishes and laminating adhesives for the graphic arts market.
More about Valspar Structure
News:
Get news on Valspar plus the latest chemical news, information, data, market movements and analysis
in one place with ICIS news
Search:
Find details on other chemical companies and suppliers with
ICIS search
Newsletters:
ICIS offers a range of FREE e-newsletters to ensure that you don't miss out on the latest development and key market intelligence in your industry. If you want the latest news sent to your inbox, sign up for ICIS e-newsletters today.
Plants and projects:
Find out more about current and planned chemical plants and projects by subscribing to our comprehensive database