Valspar Corporation VAL announced that it has unveiled a new and advanced manufacturing center in Tianjin, China. The manufacturing center, which is worth $45 million, will provide the customers with a wide array of innovative paints and coatings products. The facility supports the customers in the company's consumer paint, wood coatings and industrial coatings businesses.
The new manufacturing center is built to provide a high level safety and quality performance as well as maximum productivity. The facility has an expanded capacity for waterborne coatings products along with fully automated production and high-speed filling lines. Valspar’s ultramodern facilities also ensure safe, efficient and environment-friendly manufacturing processes.
Valspar has been experiencing strong growth in China due to increased customer demand for high-performanceand specified coatings. This investment furthers the company’s technology and sustainability leadership, thereby supporting its customers' needs in the region.
Valspar saw its profits rise in first-quarter fiscal 2015 (ended Jan 30, 2015) on continued momentum across its coatings businesses, strong performance in China, new business wins in many of its product lines and gains from productivity initiatives. Its profits, surged around 94% year over year to roughly $104 million or $1.24 per share.
Valspar, which is one of the prominent paint makers along with Akzo Nobel NV AKZOY, reported first-quarter adjusted earnings (barring one-time items including restructuring charges) of 85 cents per share compared with 70 cents per share earned in the year-ago quarter. Earnings also surpassed the Zacks Consensus Estimate of 76 cents.
Revenues rose roughly 4% year over year to $992 million in the first quarter on gains in the company’s Coatings division. The top line also came in above the Zacks Consensus Estimate of $969 million.
Currently, Valspar carries a Zacks Rank #3 (Hold).
Better-ranked stocks from the same industry include The Sherwin-Williams Co. SHW and RTI International Metals, Inc. RTI. Both these stocks hold a Zacks Rank #2 (Buy).
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