Net sales decline 13% for Valspar in Q1

Valspar has seen better days than its current first-quarter rap sheet suggests.

Net sales declined 13% to $885.8 million, which includes a negative 6% impact from foreign currency translation.

Total volumes were down 8%, which the company attributed to the change at Lowe's and "difficult comparisons to exceptional performance in the prior year."

However, acquisitions added 3% to net sales and 2% to volume.

Net income came in at half the previous year's total: $52.4 million compared to the previous year's $104.0 million.

“The results in the first quarter were in line with our expectations," said chairman and CEO Gary Hendrickson. "The quarter was highlighted by new business wins in many of our product lines and strong EBIT growth in our Coatings segment."

Net sales in Coatings decreased 10% for the quarter, while sales in Paints decreased 20%.

“Our Coatings segment is well positioned for growth, with a robust pipeline of new business and a strong product portfolio, enhanced by the recent acquisition of ISVA Vernici, a European coil coatings manufacturer," added Hendrickson. "In our Paints segment, we have several key new business wins this year, including the introduction of Cabot stain at Lowe’s. In addition, we expect to benefit from improved productivity and easing year over year comparisons in the balance of the fiscal year. Based on our outlook, we are reaffirming our fiscal 2016 guidance."

This guidance includes sales growth in the “mid-single digits” in constant currency (reported sales including the estimated impact of foreign currency translation is expected to be “up slightly” compared to fiscal 2015). Adjusted diluted EPS is expected to be in the range of $4.80 to $5.00.