The Valspar Corporation
) and Maersk Container Industry, a business unit of the Maersk
Group, have entered into a long-term supply agreement. Valspar
will provide its Aquaguard waterborne coating for shipping
containers produced by Maersk Container Industry's (MCI)
operations in Dongguan, China.
Valspar Aquaguard is a 100% waterborne coating system which
offers better corrosion protection than solvent-based, zinc-rich
systems, and creates much smaller carbon footprint in terms of
either emissions or energy required.
With the agreement in place, manufacturing of a large share of
dry goods containers will shift from solvent borne coatings to
Valspar Aquaguard waterborne coating. MCI plans to commence
production with Valspar Aquaguard in 2014 and aims at switching
to waterborne coatings completely.
MCI remains optimistic about working with Valspar and believes
that it will build more sustainable containers and help customers
become more eco-friendly using Valspar's waterborne coating
system. Valspar, on the other hand, stays committed to offering
its over 60 years of waterborne coatings expertise as a
cost-effective, sustainable solution.
Valspar released its fourth-quarter fiscal 2013 (ended Oct 25,
2013) results recently. The company exceeded earnings
expectations, but hefty restructuring costs dented its bottom
line in the quarter. Valspar raked in earnings, barring
restructuring and acquisition charges, of 97 cents per share for
the quarter, beating the Zacks Consensus Estimate by 6 cents and
surpassing the year-ago quarter earnings of 86 cents.
Profit, as reported, fell 14% year over year to $63.5 million or
72 cents a share from $73.8 million or 79 cents a year ago, hurt
Revenues went up 8% year over year to $1,108 million in the
reported quarter with gains from Paints and Coatings divisions.
It beat the Zacks Consensus Estimate of $1,084 million. Sales
were driven by strength in the U.S. consumer paint, coil and wood
product lines, aided by the Inver acquisition.
Valspar, which is among the leading paints companies along
Akzo Nobel NV
PPG Industries Inc
The Sherwin-Williams Company
), expects accelerated revenues and earnings gains in fiscal 2014
through new business wins, contributions of acquisitions, a
stable domestic market and efforts to improve productivity.
Valspar currently holds a Zacks Rank #3 (Hold).
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