UPDATE: Valspar Tops Q1 Expectations, Lowers Sales Forecast

reported better-than-expected earnings for the first quarter. However, the company cut its sales forecast for the full year. Valspar now projects flat sales for the year, versus its prior outlook for growth in the low single digits. It expects adjusted earnings of $4.45 to $4.65 per share, versus analysts' estimates of $4.59 per share. The Minneapolis, Minnesota-based company reported a quarterly profit of $104 million, or $1.24 per share, versus a year-ago profit of $53.5 million, or $0.61 per share. Excluding special items, the company's earnings climbed to $0.85 per share from $0.70 per share. Its sales climbed 4% to $992 million. However, analysts were estimating earnings of $0.76 per share on revenue of $972 million. Sales at its paints segment dropped 1% to $359 million, while sales in the coatings segment rose 7% to $586 million in the quarter. Gary E. Hendrickson, chairman and chief executive officer said, "These results were driven by improved sales and profitability in our Coatings segment, strong performance from China, new business wins in many of our product lines and the benefits from productivity initiatives." Valspar shares closed at $87.93 yesterday.