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Valspar Signs Deal with Ace - Analyst Blog
1/3/2013 5:50:00 PM
The Valspar Corporation
) announced that it has entered into a long-term strategic supply
agreement with Ace Hardware Corporation wherein it will
manufacture and supply Ace branded paints as well as produce
Valspar branded paints for 4000 Ace stores in the U.S. At the
same time, Valspar also announced the acquisition of Ace
Hardware's paint manufacturing assets, including two
manufacturing facilities located near Chicago.
In November 2012, Valspar released its fourth quarter fiscal 2012 results. The company's adjusted earnings of 86 cents per share in the quarter ended October 26, 2012 beat the Zacks Consensus Estimate by a penny and exceeded the year-ago earnings of 84 cents. The results were aided by productivity gains and acquisition of new businesses.
Sales in the quarter went down 2.2% year over year to $1.02 billion, missing the Zacks Consensus Estimate of $1.08 billion. For fiscal 2012, sales increased 2% to $4.02 billion.
Valspar, which competes with Sherwin Williams Company ( SHW ) and PPG Industries Inc. ( PPG ), currently retains a short-term Zacks #2 Rank (Buy). We have a long-term (more than 6 months) Neutral recommendation on the stock.
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VALSPAR CORP (VAL): Free Stock Analysis Report
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