This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Valspar's CEO Discusses F3Q2012 Results - Earnings Call Transcript

Average diluted shares outstanding were 93.6 million, down 2.3 million from last year. In the quarter, we continued to return cash to shareholders, repurchasing approximately 1.2 million shares for $57.6 million and have 3.8 million shares remaining under our current authorization. We estimate average diluted shares outstanding for the fourth quarter to be approximately 93.5 million.

Recapping our sales performance, adjusted for currency net sales increased 3.3% in the quarter. Currency impact was negative 2.6% resulting in reported sales growth of about 1%. Acquisitions did not have any impact on the quarter.

Looking at our segment results for the quarter, adjusted for currency, our coatings segment sales increased 5.2%. Sales in this segment benefited from new business and prior pricing actions that offset uneven market conditions and last year’s exit of unprofitable product lines. The impact on coatings segment sales from this exited product line is in the low single digits.

Paint segment sales when adjusted for currency increased just under 2%. In our North America consumer product line, sales were up more than 10% driven by strong consumer response to our market initiatives and timing of seasonal inventory builds in the North American home improvement channel.

In China, we saw continued volume growth from our initiatives aimed at the affordable housing market. However these volume improvements were partially offset by softness in our business in Australia, due in part to a continued weak residential housing market and last year’s loss of the Bunnings business.

Sales in our other segment when adjusted for currency declined roughly 2%. I’m now going to move into a discussion of our EBIT margins for the quarter and all of the numbers I’ll be discussing exclude restructuring charges. So our coatings segment EBIT margin was 17.2%, up 360 basis points from 13.6% in the third quarter of 2011. The segment benefited from new business with higher than average margins, productivity improvements, the planned exit of unprofitable product lines and better price cost balance.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.27 -0.76%
FB $101.00 1.47%
GOOG $684.12 0.89%
TSLA $143.67 -3.09%
YHOO $27.10 1.04%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs