Back to top

Analyst Blog

The Valspar Corporation (VAL - Analyst Report) 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 by charges.

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 with Akzo Nobel NV (AKZOY), PPG Industries Inc (PPG - Analyst Report) and The Sherwin-Williams Company (SHW - Analyst Report), 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).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.68 +3.66%
WEATHERFORD… WFT 23.74 +3.53%
BANCO DO BR… BDORY 14.42 +3.37%
AIR INDUSTR… AIRI 9.89 +3.13%
EQT MIDSTRE… EQM 97.88 +3.11%