Valspar lowers guidance for full year
Paint and coatings giant Valspar has lowered its fourth-quarter guidance because of continued weakness in the housing market.
The company, which sells an exclusive line of interior and exterior paints through Lowe’s stores, adjusted fiscal year earnings projections to $1.67 to $1.70 per share, down from a previous estimate of $1.80 per share.
“We are taking aggressive steps to control costs in all areas of the company,” said William Mansfield, Valspar’s chairman, president and CEO. “Our businesses in markets outside of the U.S., including our recent acquisitions, continue to perform well, and we are making significant progress with our branding and other growth initiatives. In response to the soft domestic sales environment, we have taken actions to reduce costs and our inventory levels.”
The company said it expects the weak sales environment to continue in 2008.
The Minneapolis-based company sells products at Lowe’s under the Valspar brand, in addition to brands including Laura Ashley Home, Plasti-Kote, Cabot, Goof-Off and Quikrete.
Fiber Composites completes purchase of L-P business
Decking, railing and fencing company Fiber Composites has completed its purchase of Louisiana-Pacific’s (L-P) WeatherBest decking and railing business. Terms of the deal were not disclosed.
The acquisition, announced in July, includes L-P’s WeatherBest brand and a manufacturing facility in Meridian, Idaho.
The 175,000-square-foot facility also will be used to manufacture Fiber Composites’ existing brands, including Fiberon, Veranda and Portico decking and railing systems.
Fiber Composites, based in New London, N.C., was founded in 1997.
Bombay Company secures financing
Bombay Company has obtained debtor-in-possession (DIP) financing for $115 million, following an earlier bankruptcy filing with the U.S. bankruptcy court in Fort Worth, Texas.
The troubled specialty home decor retailer will receive DIP financing from GE Corporate Lending and GE Canada Finance.
“We are proceeding with the restructuring plans as outlined in our filings E and we continue to operate our business as usual during this process,” said David Stewart, Bombay CEO.
In its earlier filing with the U.S. District Court, Bombay said it had $239.4 million in assets and $173.4 million in debts as of May 5.
Bombay designs, sources and markets home decor products through 384 retail outlets and an e-commerce site.