Valspar’s net sales up 1% in Q3
Amid strong performance in the U.S. and challenges on the demand side of the general industrial market, The Valspar Corporation reported third quarter growth of 1% in net sales and 5.5% in net income.
Net sales for the company came in at $1.1 billion for the third quarter. Meanwhile, Paints sales increased 3% to $455 million, while Coatings experienced a 1% bump in sales to $573 million.
Adjusted net income came in at $96 million, compared to year-ago figures of $91 million.
“We continue to drive strong volume growth from our new business initiatives in the consumer paint, packaging and wood product lines,” said Gary E. Hendrickson, chairman and CEO. “However, sales and earnings finished slightly below our expectations for the quarter due to continued macro-economic headwinds in key general industrial market segments and certain international regions. Based on our third quarter results and the anticipated impact of these trends, we have updated our annual adjusted EPS guidance to $3.45 to $3.55. We continue to expect improved sales and earnings growth in the fourth quarter, but not at the level we had anticipated earlier in the year.”
Retail sales hold steady in July
The U.S. Census Bureau announced July sales for the retail trade were up 0.1% compared to June 2013, bringing the adjusted estimate to $378.7 billion.
Sales for businesses described as building material and garden equipment and supplies dealers (NAICS 444) were an estimated $25.8 billion in the month of July, down 0.4% from last month, but up 7.9% from the year-ago month.
The biggest gainer on a month-to-month basis, according to the data released Tuesday morning, were sporting goods, hobby, book and music stores (NAICS 451), up 1.0% from June’s estimate.
Nonstore retailers were up 8.8% compared to last year.
Real Goods Solar acquires Syndicated Solar
Prominent solar energy company Real Goods Solar, Inc. has completed a deal to acquire the assets of Syndicated Solar, Inc. for a net consideration of $2.5 million, plus 400,000 shares of its unregistered Class A common stock.
The seller has the potential to earn up to $250,000 in additional earn-out payments at the end of the fiscal year, as well as 1.3 million extra shares of unregistered Class A common stock in performance-based earn-outs over the next 30 months.
"I am very excited about this acquisition, which adds critical capabilities to our residential division in terms of both additional talent and pipeline and helping Real Goods Solar create more efficient and scalable front-end processes," said Real Goods Solar CEO Kam Mofid. "This transaction also complements the Mercury Solar Systems acquisition announced last week that strengthened primarily the commercial side of our business. As we accelerate growth both regionally and nationally, we will also have the opportunity to look at unique and innovative financing relationships and solutions to better serve our customers."
According to the company, Syndicated Solar has shown promising growth in the residential market, with revenues of $2.5 million in 2011 and $7.3 million in 2012. The company forecasts doubled year-over-year revenue growth in 2013.
More than 40 Syndicated Solar employees will join the ranks of Real Goods Solar, with founder and CEO Justin Pentelute remaining at the helm and reporting to Mofid.
"All of us at Syndicated Solar are very pleased to be joining Real Goods Solar, a true pioneer and an iconic firm in the solar industry," said Pentelute. "We have grown substantially over the past few years and as part of Real Goods Solar, we can create an even stronger residential solar team to capture the tremendous runway in front of us as we bring this wonderful 100% clean renewable and economically attractive energy to more customers across the nation."