Company Reaffirms Fiscal 2012 Guidance of $3.20 to $3.30

MINNEAPOLIS--(BUSINESS WIRE)--Aug. 14, 2012-- The Valspar Corporation (NYSE:VAL) today reported its results for the third-quarter ended July 27, 2012.

Third-quarter sales totaled $1.08 billion, an increase of one percent from the third quarter of 2011. Third-quarter adjusted net income per share was $0.97 in 2012, an increase of 21 percent from $0.80 in 2011. Third-quarter adjusted net income per share in 2012 excludes $0.05 per share in restructuring charges. Third-quarter adjusted net income per share in 2011 excludes $0.10 per share in restructuring charges. Net income for the third quarter of 2012 was $86.4 million and reported earnings per share were $0.92. Net income for the third quarter of 2011 was $67.4 million and reported earnings per share were $0.70.

“We were pleased with our performance in the quarter,” said Gary E. Hendrickson, chairman and chief executive officer. “Excluding negative currency impact, our revenue increased three percent and our strong earnings growth is the outcome of excellent execution in a challenging global environment. Looking ahead to our fourth quarter, we expect continued softness in some international markets and modest growth in North America. However, we are confident the strength of our portfolio, our growth initiatives and our proven ability to drive productivity improvements will offset these challenges and we are reaffirming our adjusted full year earnings per share guidance of $3.20 to $3.30.”

Hendrickson and Lori A. Walker, senior vice president and chief financial officer, will conduct a conference call for investors at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) today. The call can be heard live over the Internet at Valspar’s website at www.valsparcorporate.com under Investor Relations. Those unable to participate during the live broadcast can access an archive of the call on the Valspar website. A taped delay of the call will also be available from 12:30 p.m. Central Time August 14 through Midnight on August 28 by dialing +1 (800) 475-6701 from within the U.S. or +1 (320) 365-3844 from outside of the U.S., using access code 256471.

About The Valspar Corporation

The Valspar Corporation (NYSE: VAL) is a global leader in the paint and coatings industry. Since 1806, Valspar has been dedicated to bringing customers the latest innovations, the finest quality and the best customer service in the coatings industry.

FORWARD-LOOKING STATEMENTS

Certain statements contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Forward-looking statements are based on management’s current expectations, estimates, assumptions and beliefs about future events, conditions and financial performance. Forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside our control and could cause actual results to differ materially from such statements. Any statement that is not historical in nature is a forward-looking statement. We may identify forward-looking statements with words and phrases such as “expects,” “projects,” “estimates,” “anticipates,” “believes,” “could,” “may,” “will,” “plans to,” “intend,” “should” and similar expressions. These risks, uncertainties and other factors include, but are not limited to, deterioration in general economic conditions, both domestic and international, that may adversely affect our business; fluctuations in availability and prices of raw materials, including raw material shortages and other supply chain disruptions, and the inability to pass along or delays in passing along raw material cost increases to our customers; dependence of internal sales and earnings growth on business cycles affecting our customers and growth in the domestic and international coatings industry; market share loss to, and pricing or margin pressure from, larger competitors with greater financial resources; significant indebtedness that restricts the use of cash flow from operations for acquisitions and other investments; dependence on acquisitions for growth, and risks related to future acquisitions, including adverse changes in the results of acquired businesses, the assumption of unforeseen liabilities and disruptions resulting from the integration of acquisitions; risks and uncertainties associated with operations and achievement of profitable growth in developing markets, including Asia and Central and South America; loss of business with key customers; damage to our reputation and business resulting from product claims or recalls, litigation, customer perception and other matters; our ability to respond to technology changes and to protect our technology; changes in governmental regulation, including more stringent environmental, health and safety regulations; our reliance on the efforts of vendors, government agencies, utilities and other third parties to achieve adequate compliance and avoid disruption of our business; unusual weather conditions adversely affecting sales; changes in accounting policies and standards and taxation requirements such as new tax laws or revised tax law interpretations; the nature, cost and outcome of pending and future litigation and other legal proceedings; and civil unrest and the outbreak of war and other significant national and international events. We undertake no obligation to subsequently revise any forward-looking statement to reflect new information, events or circumstances after the date of such statement, except as required by law.

Source: The Valspar Corporation

The Valspar Corporation
Mark Goldman, 612-851-7802 (Media)
mgoldman@valspar.com
Tyler Treat, 612-851-7358 (Investors)
ttreat@valspar.com