Paint and coatings giant Valspar, which sells an exclusive line of interior and exterior paints in Lowe’s stores, saw net earnings drop 23.8 percent from the year-ago quarter, to $47 million from $58.2 million in the same period last year. Sales rose 7.1 percent to $957.7 million from $893.5 million in the prior-year period.
"Results for the quarter were in line with our expectations," said William Mansfield, Valspar chairman and CEO. "Strong results from our international businesses, new business and pricing helped to partially offset the impact of substantially higher raw material costs and the weak U.S. economy."
Looking ahead, the company anticipates ongoing pressure on raw material costs and continued weakness in the U.S. economy.
"We remain focused on improving our competitive position," said Mansfield. "We are moving forward with restructuring actions to further improve the efficiency of our business, implementing additional price increases and continuing to invest in our brands.”
Valspar is based in Minneapolis.