Weaker-than-anticipated international markets help put a damper on Valspar's first-quarter performance.
The Minneapolis-based paint giant saw sales decline to $875.2 million in the quarter, down from $885.6 million in the same quarter last year. Net income declined to $55.0 million, compared with $55.8 million.
“Although we made substantial progress this quarter on a number of key initiatives, international markets were weaker than anticipated,” said Gary Hendrickson, chairman and CEO. “We continued to invest in our long-term opportunities and remain confident we will achieve our new business plans for the full year. However, weak demand in certain international markets is expected to continue."
The company adjusted downward its full-year guidance to $3.60 to $3.80 to reflecting the market conditions.
Valspar recently announced a long-term deal with Ace Hardware. Under the deal, Valspar will manufacture and supply Ace-branded paint products to Ace dealers. The companies also announced that Valspar has acquired Ace Hardware’s paint manufacturing assets, including two manufacturing facilities located near Chicago.