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Valspar Expands Production Capacity for Automotive Coatings
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The Valspar Corporation (VAL - Free Report) has boosted the production capacity of its automotive refinish coatings products at U.S.-based manufacturing facilities. Through recent technology and equipment upgrades, at the Garland, TX, Pittsburgh, PA and Massillon, OH facilities, Valspar Automotive has not only increased production in North America, but also augmented its storage space by approximately 300%.
These facilities develop and produce refinish products for some of the most popular brands in the industry, including DeBeer Refinish, Valspar Refinish, Matrix Automotive Finishes, U.S. Chemical & Plastics and Prospray Finishes as well as several private label brands.
The Garland and Pittsburgh sites have witnessed an increase in manufacturing volumes due to technology and equipment upgrades. The $10 million expansion project at Garland and Pittsburgh sites have been the largest of its kind by Valspar Automotive till date. The filling and storage capacity has also increased for select brands including DeBeer Refinish, Valspar Refinish, Prospray Finishes and Matrix Automotive Finishes. The initiative is likely to augment production of automotive refinish brands by almost 200%.
Expansion at the three facilities is part of the final stages of integrating the automotive refinish coatings business of Quest Specialty Chemicals, which Valspar acquired in Jun 2015.
Valspar has underperformed the Zacks categorized Paints and Allied Products industry over the past six months. The company’s shares have rallied around 10.3% over this period, compared with roughly 15.9% gain recorded by the industry.
Valspar recorded adjusted earnings of 52 cents per share in the fiscal first quarter, missing the Zacks Consensus Estimate of 74 cents. Revenues improved roughly 2.5% year over year to $907.7 million in the reported quarter beating the Zacks Consensus Estimate of $901 million.
Valspar is gaining from new business wins, expansion and cost management actions. New business wins have contributed about 4% annually to the company’s growth over the last several years. The planned merger with Sherwin-Williams will also create significant synergies.
However, Valspar remains exposed to currency headwinds and continues to witness irregular demand trends across its end markets. It is also witnessing weak demand for consumer paints product lines across certain markets.
Boise Cascade has an expected long-term growth of 17.2%.
Potlatch Corp has an expected long-term growth of 5%.
Summit Materials has an expected long-term growth of 10.5%.
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Valspar Expands Production Capacity for Automotive Coatings
The Valspar Corporation (VAL - Free Report) has boosted the production capacity of its automotive refinish coatings products at U.S.-based manufacturing facilities. Through recent technology and equipment upgrades, at the Garland, TX, Pittsburgh, PA and Massillon, OH facilities, Valspar Automotive has not only increased production in North America, but also augmented its storage space by approximately 300%.
These facilities develop and produce refinish products for some of the most popular brands in the industry, including DeBeer Refinish, Valspar Refinish, Matrix Automotive Finishes, U.S. Chemical & Plastics and Prospray Finishes as well as several private label brands.
The Garland and Pittsburgh sites have witnessed an increase in manufacturing volumes due to technology and equipment upgrades. The $10 million expansion project at Garland and Pittsburgh sites have been the largest of its kind by Valspar Automotive till date. The filling and storage capacity has also increased for select brands including DeBeer Refinish, Valspar Refinish, Prospray Finishes and Matrix Automotive Finishes. The initiative is likely to augment production of automotive refinish brands by almost 200%.
Expansion at the three facilities is part of the final stages of integrating the automotive refinish coatings business of Quest Specialty Chemicals, which Valspar acquired in Jun 2015.
Valspar has underperformed the Zacks categorized Paints and Allied Products industry over the past six months. The company’s shares have rallied around 10.3% over this period, compared with roughly 15.9% gain recorded by the industry.
Valspar recorded adjusted earnings of 52 cents per share in the fiscal first quarter, missing the Zacks Consensus Estimate of 74 cents. Revenues improved roughly 2.5% year over year to $907.7 million in the reported quarter beating the Zacks Consensus Estimate of $901 million.
Valspar is gaining from new business wins, expansion and cost management actions. New business wins have contributed about 4% annually to the company’s growth over the last several years. The planned merger with Sherwin-Williams will also create significant synergies.
However, Valspar remains exposed to currency headwinds and continues to witness irregular demand trends across its end markets. It is also witnessing weak demand for consumer paints product lines across certain markets.
Valspar Corporation (The) Price and Consensus
Valspar Corporation (The) Price and Consensus | Valspar Corporation (The) Quote
Zacks Rank & Key Picks
Valspar carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the construction space include Boise Cascade, L.L.C. (BCC - Free Report) , Potlatch Corporation (PCH - Free Report) and Summit Materials, Inc. (SUM - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boise Cascade has an expected long-term growth of 17.2%.
Potlatch Corp has an expected long-term growth of 5%.
Summit Materials has an expected long-term growth of 10.5%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>