By Imani Moise
Valspar Corp., which is merging with rival paint maker Sherwin-Williams Co., said its revenue dropped in its fourth-quarter, hurt by lower sales and foreign currency effects.
The Minneapolis-based paint maker in March agreed to be acquired for $9.3 billion in cash, a price tag that represented a 35% premium. The deal gives Sherwin-Williams more access to do-it-yourself painters who tend to buy supplies at retailers such as Lowe's Cos. and Ace Hardware Corp., places where Valspar is particularly strong.
In the quarter ended Oct. 28, Valspar said merger-related costs totaled $3 million, including employee expenses, professional services and regulatory fees. Additionally, restructuring costs came up to $5 million during the quarter. Combined, these items dented earnings 10 cents per share.
Across the company, volume decreased 2%. Revenue in its coatings segment fell 2% to $626 million, and sales in its paints segment dropped 7% to $421 million.
In all for the quarter ended Oct. 28, Valspar reported a profit of $103.6 million, or $1.27 a share, up from $102.4 million, or $1.26 a share, a year earlier. The company is no longer provided adjusted figures.
Revenue fell 3.7%% to $1.11 billion.
Analysts polled by Thomson Reuters had forecast $1.17 billion in revenue.
Shares closed at $103.64 and were inactive premarket. The stock has risen 25% so far this year.
Write to Imani Moise at firstname.lastname@example.org
(END) Dow Jones Newswires
December 20, 201609:05 ET (14:05 GMT)
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