— Furniture Today,
MINNEAPOLIS (PR) — The Valspar Corp. said net income for the third quarter was $52,635,000 versus net income of $45,713,000 for the comparable period last year.


This year’s results include expenses of $0.01 per diluted share associated with Valspar’s manufacturing rationalization plan and $0.01 per diluted share for stock based compensation. Also included in this year’s results is a favorable tax adjustment of $0.03 per diluted share.

Last year’s results for the third quarter included expenses of $0.02 per share for manufacturing rationalization. Sales for the quarter increased 9.9% to $797,376,000, compared to $725,477,000 last year.

Net income for the first nine months of fiscal 2013 was $123,111,000 or $1.20 per diluted share, compared with $96,652,000 or $0.92 per diluted share for the same period a year ago. Sales for the first nine months increased 10.3% to $2,193,957,000 versus sales of $1,988,563,000 for the comparable period a year ago.

William L. Mansfield, president and CEO, said: “Our sales growth for the quarter was driven by continued strength in our architectural, industrial and resin product lines. Volume growth, improved manufacturing efficiencies and year-over-year price increases contributed to our margin improvement, but recent raw material cost increases will necessitate additional price initiatives.

“During the quarter, we increased our investment in promotional and advertising spending for the Cabot Stains brand, which accelerated new business sales growth across Cabot’s customer base. On July 26th, we acquired an 80% interest in Huarun Paints, a leading Chinese supplier of furniture, decorative wood and architectural coatings. Based on mid-year results, we expect Huarun to achieve full year sales of $200 – $210 million in calendar 2013. We believe our investments in Cabot and China are excellent long term growth vehicles that will generate strong returns for Valspar.”