Company Reaffirms FY 2009 Guidance

MINNEAPOLIS, Feb. 23 /PRNewswire-FirstCall/ -- The Valspar Corporation (NYSE: VAL) today reported its results for the first-quarter ended January 30, 2009.

First-quarter sales totaled $639.5 million, a 16.4 percent decline from the first quarter of 2008. First-quarter adjusted net income per share was $0.20 in 2009 and $0.24 in 2008, excluding non-cash adjustments of $0.03 per share for Huarun minority interest shares in 2008 and 2009, and a $0.06 per share charge in 2009 related to restructuring actions. Net income for the first quarter of 2009 was $14.2 million. First-quarter reported earnings per share in 2009 were $0.11. Net income for the first quarter of 2008 was $24.0 million. First-quarter reported earnings per share in 2008 were $0.21.

During the quarter, the company took additional steps to reduce its cost structure, an expansion to restructuring actions initiated in July 2008. The company now expects restructuring costs to total $0.35-$0.38 per share. To date, $0.22 per share in restructuring costs have been incurred. The restructuring actions are expected to be completed by the end of the third quarter of fiscal 2009. In fiscal 2010, these steps are expected to generate annual savings of $0.20-$0.23 per share.

'Despite the global recession, earnings for the quarter were in line with our expectations,' said William L. Mansfield, Valspar chairman and chief executive officer. 'Through solid execution and operational discipline, we were able to mitigate the impact of lower sales. We are meeting the challenges presented by the difficult economic environment and continue to expect fiscal year 2009 adjusted net income per share to be in the range of $1.55 to $1.65, excluding restructuring charges.'

William L. Mansfield and Lori A. Walker, senior vice president and chief financial officer, will conduct a conference call for investors at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) today. The call can be heard live over the Internet at Valspar's website at www.valsparglobal.com under Investor Relations. Those unable to participate during the live broadcast can access an archive of the call on the Valspar website. A taped delay of the call will also be available from 12:00 a.m. Central Time February 23 through Midnight on March 6 by dialing 1-800-475-6701 from within the U.S. or 320-365-3844 from outside of the U.S., using access code 985806.

The Valspar Corporation (NYSE: VAL) is a global leader in the paint and coatings industry. Since 1806, Valspar has been dedicated to bringing customers the latest innovations, the finest quality and the best customer service in the coatings industry.

For more information, visit www.valsparglobal.com.

This press release contains certain 'forward-looking' statements. These forward-looking statements are based on management's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside our control and could cause actual results to differ materially from such statements.