* Sees 2012 EPS $2.92-$3.12 vs est $3.01
* Q1 adj EPS $0.62 vs est $0.48
* Rev rises 5.1 pct to $885.6 mln
* Shares up 8 pct; touch life-time high
Feb 14 Valspar Corp raised its
full-year profit forecast and the paint and coatings maker said
it will continue to increase prices to offset high raw material
costs, sending its shares up to a life high.
Shares of the Minneapolis-based company were up 4 percent at
$46.00 in midday trading on the New York Stock Exchange. They
touched a high of $47.55 earlier in the session.
Morningstar analyst Jeffrey Cannon said the stock was
reacting to margin improvement and pricing actions that led to
The company will offset higher raw material costs with "new
business, pricing when needed, substantial productivity and good
management of expenses," Chief Executive Gary Hendrickson said
on a conference call with analysts.
The CEO said the company was optimistic about demand from
the United States and Latin American markets, but cautious on
Europe and China.
Valspar now expects a full-year profit of $2.92 to $3.12 per
share, up from its prior forecast of $2.87 to $3.07 per share.
Analysts, on an average, were expecting a full-year profit
of $3.01 a share, according to Thomson Reuters I/B/E/S.
For the first quarter, net profit was $55.8 million, or 58
cents a share, up from $33.4 million, or 34 cents a share, a
Excluding items, it earned 62 cents a share.
Sales rose 5.1 percent to $885.6 million.
Analysts had expected the company to earn 48 cents per share
on revenue of $906.4 million.