Valspar sales flat in second quarter

Minneapolis paint giant Valspar reported second quarter net sales of $1.03 billion, essentially flat with the prior-year quarter.

The company, which recently signed a deal to become the key supplier of paint for Ace Hardware, reported net income of $76.9 million, up from $76.5 million in last year's second quarter.

Volume was up 7%, including the Ace deal, up 3% excluding Ace. 

"Strong volume growth in the quarter was driven by new business wins," said Gary E. Hendrickson, chairman and CEO. "We saw improving momentum in the U.S., driven by solid performance in our consumer paints, packaging, wood and coil product lines."

The company also announced it was spening about $30 million to support facility consolidations, production line transfers and efficiency improvements. These actions, the company said, will generate annual savings of "approximately $0.10 per diluted share by fiscal 2015."