Valspar cuts outlook, citing challenges overseas
Paint and coatings maker Valspar cuts profit outlook for year, cites international challenges
MINNEAPOLIS (AP) -- Paint and coatings maker Valspar on Tuesday cut its profit outlook for the year, saying "challenging demand" overseas and in key industries had dampened results in its most recent quarter.
The Minneapolis company's fiscal third-quarter net income rose 9 percent to $93.8 million, or $1.04 per share. . That compares with $86.4 million, or 92 cents per share, in the May-July period last year.
Stripping out costs related to acquisitions and restructuring, per-share earnings rose to $1.07 from 97 cents.
Revenue increased 1 percent, to $1.09 billion from $1.08 billion, as paint sales increased 3 percent and coatings sales rose 1 percent.
Analysts were expecting more. They predicted adjusted earnings of $1.09 per share on revenue of $1.13 billion, according to a FactSet survey.
"Sales and earnings finished slightly below our expectations for the quarter due to continued macroeconomic headwinds in key general industrial market segments and certain international regions," said CEO Gary Hendrickson in a statement.
The company cited lower demand for its coatings from off-road equipment and shipping container customers.
Valspar now expects adjusted earnings for the fiscal year, which runs through October, of $3.45 to $3.55 per share. Its prior guidance was for $3.60 to $3.80 per share. Analysts forecast earnings of $3.70 per share.
