MINNEAPOLIS - The Valspar Corp. reported second quarter 2014 net sales of $1.1 billion, an increase of 10% over the prior year. Second quarter 2014 adjusted net income and earnings per diluted share, excluding certain nonrecurring items, were $93 million and $1.07, respectively. Second quarter 2013 adjusted net income and earnings per diluted share were $83 million and $0.91, respectively.
“We are pleased to report another strong quarter of volume and sales growth from both our Coatings and Paints segments,” said Gary E. Hendrickson, Chairman and Chief Executive Officer. “We are successfully executing our growth plans by integrating acquisitions, scaling new business wins and improving productivity. These efforts are evident in our results as sales for the first half of the fiscal year increased 9% and adjusted diluted EPS is up 17%. We remain focused on executing these initiatives to achieve our full-year sales and earnings growth objectives.”
Net sales in the Paints segment increased 8% to $472 million in the second quarter of 2014. Volume increased in all geographic regions including the United States, China and Australia. Volume growth in the United States increased over 10%. Paints segment adjusted earnings before interest and taxes (EBIT) of $57 million was down slightly from the prior year due to planned increases in advertising and marketing investments to support new retail programs in both the home improvement and independent hardware channels, and higher incentive compensation expense.
Net sales in the Coatings segment increased 12% to $603 million in the second quarter of 2014. Excluding acquisitions, volumes in the segment increased 4%. Volume growth was led by another quarter of increases in Packaging coatings and Wood coatings. General Industrial and Coil coatings volumes declined mid-single digits in the second quarter due to uneven end market demand and supply chain disruptions caused by inclement weather conditions in the United States. Coatings segment adjusted EBIT of $101 million increased 21% as a result of acquisitions, increased volume, improved sales mix and productivity initiatives.