MINNEAPOLIS - The Valspar Corp. reported its results for the fourth-quarter and fiscal-year ended October 28, 2011, beating Wall Street estimates.

Fourth-quarter sales totaled $1.05 billion, a 19.4 percent increase from the fourth quarter of 2010. Fourth-quarter adjusted net income per share increased to $0.84 in 2011, a 50 percent increase from $0.56 in 2010.

Fourth-quarter adjusted net income per share in 2011 excludes a $3.82 per share non-cash impairment charge for goodwill and intangibles associated with the company’s wood coatings and gelcoat product lines and a $0.13 per share restructuring charge. Fourth-quarter adjusted net income per share for 2010 excludes a $0.03 per share charge for fees related to the acquisition of Wattyl and a $0.02 per share restructuring charge. Including the after-tax non-cash impairment charge of $363.4 million, the reported net loss for the fourth quarter of 2011 was $295.7 million or $3.18 per share. Net income for the fourth quarter of 2010 was $51.3 million and reported earnings per share were $0.51.

The fiscal year 2011 fourth quarter non-cash goodwill impairment charge was associated with the wood coatings and gelcoat product lines from the acquisition of Lilly Industries Inc. in 2000. The action is a result of the company’s annual impairment analysis of goodwill. The company concluded that the economic outlook for the end-markets served by these product lines, which are closely tied to U.S. housing starts, is not likely to change in the foreseeable future. Therefore, the carrying amount of these businesses exceeded their fair value.

Fiscal year 2011 sales totaled $3.95 billion, a 22.5 percent increase from fiscal year 2010. Adjusted earnings per share increased 18.8 percent to $2.65 in 2011 from $2.23 in 2010. Adjusted net income per share for 2011 excludes a $3.75 per share non-cash goodwill impairment charge, a $0.24 per share restructuring charge and $0.09 per share in acquisition-related charges. Adjusted net income per share for 2010 excludes an $0.08 per share charge related to restructuring actions, a $0.03 per share charge for fees related to the acquisition of Wattyl and an $0.08 per share gain from the sale of assets. Including the non-cash impairment charge, the reported net loss for fiscal year 2011 was $138.6 million or $1.47 per share. Net income for 2010 was $222.1 million and reported earnings per share were $2.20.

“Delivering strong sales and double-digit earnings growth for the year was a significant accomplishment given challenging market conditions and substantially higher raw material costs,’ said Gary E. Hendrickson, President and Chief Executive Officer. “We were very successful with our new business efforts and made progress in restoring our operating margin through pricing and productivity. We continued to invest in our brands and leading technologies, and took additional steps to reduce our cost structure. In addition, we returned cash to shareholders by repurchasing 6.75 million shares and increased our dividend for the 33rd consecutive year.”

Hendrickson also commented on the outlook for fiscal 2012. “While the outlook for the global economy is unclear, our sales will benefit from our diverse mix of businesses and growth in fast-growing coatings markets in Asia and Latin America. We have a strong pipeline of new products and significant opportunities for share gains in both our Paint and Coatings segments globally. We will benefit from our restructuring actions and maintain our operational and pricing discipline. We currently anticipate fiscal 2012 adjusted net income per share in the range of $2.87 to $3.07, our fourth consecutive year of double-digit earnings growth.”