Aug. 18--Sales for Valspar Corp., a paint and coatings manufacturer, slid 17 percent for the quarter that ended in July, but the company on Monday raised its earnings outlook for the fiscal year.

Although Valspar's sales fell to $794.6 million for the fiscal 2009 third quarter, net income rose 38 percent, from $47 million to $65 million.

Valspar CEO William Mansfield told analysts that the company benefited from earlier cost-cutting actions. In addition, he said, "We were able to generate new business and gain share in several product lines, which helped offset market weakness."

Mansfield said the company was boosting its full-year earnings estimate because third-quarter earnings were better than expected and he anticipates continuing benefits from productivity improvements and cost controls.

The Minneapolis-based company Monday estimated fiscal 2009 earnings of $1.67 to $1.72 per share, excluding restructuring charges. That's up from the $1.55 to $1.65 range released in May.

Valspar's net income per share for the third quarter was 61 cents, up from 44 cents a year earlier. That performance beat analysts' expectation of 53 cents a share.

The company's stock closed at $26.58 a share, up 17 cents, or less than 1 percent, on a day that broader market indexes dropped 2 percent or more.

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