MINNEAPOLIS, MN -- The Valspar Corp. reported its results for the fourth quarter and fiscal year ended October 30, 2009.
Fourth-quarter sales totaled $776.6 million, a 15.9 percent decline from the fourth quarter of 2008. The fourth quarter of 2009 consisted of 13 weeks compared to 14 weeks in 2008. Sales for the quarter declined 11.8 percent adjusting for the 14th week of 2008. Fourth-quarter adjusted net income per share increased to $0.53 in 2009 from $0.42 in 2008. Fourth-quarter adjusted net income per share in 2009 excludes a $0.04 per share charge related to restructuring actions. Fourth-quarter adjusted net income per share in 2008 excludes a $0.13 per share charge related to restructuring actions, a non-cash charge of $0.03 per share for Huarun minority interest shares and a $0.09 per share after-tax gain from the sale of assets. Net income for the fourth quarter of 2009 was $49.9 million and reported earnings per share were $0.49. Net income for the fourth quarter of 2008 was $38.9 million and reported earnings per share were $0.35.
Fiscal year 2009 sales totaled $2,879.0 million, a decline of 17.3 percent or 16.2 percent when adjusting for the additional week in fiscal 2008. Adjusted earnings per share increased to $1.77 in 2009 from $1.57 in 2008. Adjusted net income per share for 2009 excludes an $0.18 per share charge related to restructuring actions and a non-cash charge of $0.10 per share for Huarun minority interest shares. Adjusted net income per share for 2008 excludes a $0.16 per share charge related to restructuring actions, a non-cash charge of $0.12 per share for the Huarun minority interest shares and a $0.09 per share after-tax gain from the sale of assets. Net income for 2009 totaled $160.2 million and reported earnings per share were $1.49. Net income for 2008 was $150.8 million and reported earnings per share were $1.38.
"Our strong earnings performance for the year, achieved under extremely challenging global economic conditions, reflects the operational discipline of Valspar employees," said William L. Mansfield, Valspar Chairman and Chief Executive Officer. "During the year, we maintained our investments in branding and development of leading-edge technologies, significantly lowered our cost structure and strengthened our global operations. By remaining focused on execution, we gained share in key markets, improved productivity and delivered strong cash flow."
Mansfield also commented on the outlook for 2010. "Our outlook for fiscal 2010 assumes modest revenue growth and ongoing pressure on raw material costs. We currently expect our 2010 adjusted net income per share to be in the range of $1.85 to $2.05."
