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Valspar Packaging to Implement Price Increase in Asia
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Paint maker, Valspar Corporation (VAL - Free Report) has declared that it will implement a price increase in Asia effective from Apr 1, or as contracts permit. This will help to offset a significant rise in raw material costs.
Sam Shoemaker, President of Valspar Packaging, noted that increased crude oil prices, production issues and force majeure in some feedstock markets along with continued push for compliance with environmental and safety regulations have led to higher feedstock prices for major commodity chemicals.
Valspar is one of the largest metal packaging coatings solutions provider in the world. The company aims at minimizing costs and remains committed to provide packaging coating solutions.
Valspar has underperformed the Zacks categorized Paints and Allied Products industry over the past three months. The company’s shares have gained around 7.4% over this period, compared with roughly 10.5% gain recorded by the industry.
Valspar continues to make progress by winning new businesses and gaining from its diversified product portfolio and expansion actions. Moreover, the company is set to be acquired by Sherwin-Williams (SHW - Free Report) in a deal worth roughly $11.3 billion. The planned merger is expected to create round $280 million in annual synergies within two years following its closure. Also, Valspar is taking measures to lower its cost structure and increase the efficiency of its operations.
However, the company recorded lower profits in first-quarter fiscal 2017. Adjusted earnings for the quarter missed the Zacks Consensus Estimate.
Valspar is exposed to currency headwinds, stemming from a stronger U.S. dollar. Foreign exchange translation had an unfavorable impact on its overall sales in first-quarter 2017 and also affected sales across its coatings and paints businesses.
Valspar also continues to witness irregular demand trends across its end markets and weakness for some of its products in overseas markets. Coatings demand for general industrial products remains somewhat soft. The company is also seeing weak sales for its consumer paints product lines in China and Australia and its automotive refinish product line globally as witnessed in the most recent quarter.
Owens Corning has an expected long term growth of 11.5%.
NVR has an expected long term growth of 12%.
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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.Click here for the 6 trades >>
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Valspar Packaging to Implement Price Increase in Asia
Paint maker, Valspar Corporation (VAL - Free Report) has declared that it will implement a price increase in Asia effective from Apr 1, or as contracts permit. This will help to offset a significant rise in raw material costs.
Sam Shoemaker, President of Valspar Packaging, noted that increased crude oil prices, production issues and force majeure in some feedstock markets along with continued push for compliance with environmental and safety regulations have led to higher feedstock prices for major commodity chemicals.
Valspar is one of the largest metal packaging coatings solutions provider in the world. The company aims at minimizing costs and remains committed to provide packaging coating solutions.
Valspar has underperformed the Zacks categorized Paints and Allied Products industry over the past three months. The company’s shares have gained around 7.4% over this period, compared with roughly 10.5% gain recorded by the industry.
Valspar continues to make progress by winning new businesses and gaining from its diversified product portfolio and expansion actions. Moreover, the company is set to be acquired by Sherwin-Williams (SHW - Free Report) in a deal worth roughly $11.3 billion. The planned merger is expected to create round $280 million in annual synergies within two years following its closure. Also, Valspar is taking measures to lower its cost structure and increase the efficiency of its operations.
However, the company recorded lower profits in first-quarter fiscal 2017. Adjusted earnings for the quarter missed the Zacks Consensus Estimate.
Valspar is exposed to currency headwinds, stemming from a stronger U.S. dollar. Foreign exchange translation had an unfavorable impact on its overall sales in first-quarter 2017 and also affected sales across its coatings and paints businesses.
Valspar also continues to witness irregular demand trends across its end markets and weakness for some of its products in overseas markets. Coatings demand for general industrial products remains somewhat soft. The company is also seeing weak sales for its consumer paints product lines in China and Australia and its automotive refinish product line globally as witnessed in the most recent quarter.
Valspar Corporation (The) Price and Consensus
Valspar Corporation (The) Price and Consensus | Valspar Corporation (The) Quote
Valspar carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Better-ranked companies in the construction space include Owens Corning Inc (OC - Free Report) and NVR, Inc. (NVR - Free Report) , both sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Owens Corning has an expected long term growth of 11.5%.
NVR has an expected long term growth of 12%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>