Valspar Corp. (VAL) reported that its second-quarter net income increased to $76.91 million or $0.84 per share, from $76.54 million or $0.80 per share in the same quarter last year.
Adjusted net income for the quarter were $83.32 million or $0.91 per share, up from $79.83 million and $0.84 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.90 per share for the quarter. Analysts' estimates typically exclude special items.
Net Sales for the quarter were $1.031 billion, compared to $1.032 billion last year. Ten analysts had consensus revenue estimate of $1.05 billion for the quarter.
The company also announced restructuring actions primarily focused on improving its North American paint manufacturing footprint following the Ace paint acquisition and to continue improving profitability in its Australian business. These actions are expected to result in total non-recurring charges estimated at $18 million to $23 million in fiscal 2013 and 2014. In addition, approximately $30 million of the company's planned capital spending will be used to support facility consolidations, production line transfers and efficiency improvements. When fully implemented, these actions are expected to generate annual savings of about $0.10 per share by fiscal 2015.
For 2013, the company now expects earnings to be in the range of $3.45 - $3.65 per share, and adjusted earnings of $3.60 - $3.80 per share. While announcing the first-quarter result, the company had expected earnings of $3.60 to $3.80 per share for fiscal 2013. Analysts expect the company to report earnings of $3.68 per share for fiscal 2013.
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