Coatings and paint company
said its fourth-quarter earnings rose 2% from a year ago period.
The Minneapolis, Minn.-based company earned $52.1 million, or 51 cents a share, in the quarter, compared with $51 million, or 50 cents a share, in the year-ago period. Analysts polled by Thomson First Call were expecting earnings of 47 cents a share in the most recent quarter.
Fourth-quarter revenue rose 8.1% to $784.1 million as against analysts' estimate of $808.5 million.
The company expects fiscal 2007 earnings in the range of $1.80 to $1.90 a share. Analysts expect $1.82 a share for 2007.
Operating income for the quarter was down 1 basis point at $87.5 million compared with last year quarter.
Valspar expects earnings of $1.80 a share to $1.90 a share in 2007. Analysts are expecting earnings of $1.82 a share.
By segment, paint revenue rose 10% to $255.1 million, coatings revenue was up 6% at $448.7 million and other revenue rose 16% to $80.3 million.
"We made three strategic investments that will fuel our growth: We acquired an 80% interest in Huarun Paints in China; we improved the productivity of our global manufacturing base with the completion of our manufacturing rationalization plan and we strengthened our consumer paint brands. In the face of major raw material cost increases over the past two years, we continued to restore the profitability of our business. In addition, our increased cash flow from operations combined with $103 million of additional debt enabled us to fund $365 million of acquisitions and capital investments and $60 million of dividends and stock repurchases," the company said.
Shares of the company were up 85 cents, or 3.13%, at $28.00 Monday in pre-market activity.
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