The Valspar Corporation reported that fiscal fourth quarter 2014 net sales reached $1.2 billion, an increase of 11 percent over the prior year. Fourth quarter 2014 adjusted net income was $117 million. Fiscal year 2014 net sales were $4.5 billion, up 10% versus the prior year. Fiscal year 2014 adjusted net income was $374 million.
"We are pleased to report record sales and earnings in 2014," said Gary E. Hendrickson, chairman and chief executive officer. "Sales increased 10 percent. This strong performance was driven by volume growth in the Coatings segment; continuing benefits from our new growth initiatives in Paints; excellent performance from our international regions; benefits from new product introductions; and the positive impact of productivity initiatives. In addition, we continued to demonstrate our commitment to enhancing shareholder returns by increasing our dividend by 13% and repurchasing 5% of our outstanding shares during the year."
"During the fourth quarter, sales grew 11 percent," Hendrickson added. "The Coatings segment continued its positive momentum with sales growth of 15 percent and all product lines delivered volume increases in the quarter. We realized the highest growth in the General Industrial product line, which benefited from the impact of the Inver acquisition. We continued to grow our Packaging product line, driven by the success of our non-BPA offerings. In the Paints segment, sales increased in all regions and we significantly increased EBIT."
Commenting on the company's outlook Hendrickson said, "Looking ahead to 2015, we expect another year of growth. In our Coatings segment, we expect stable end markets and growth from new business wins. In the Paints segment, continued growth in China, Australia and Europe is expected, to be offset by an adjustment to our product line offering at a customer in North America. We estimate that total sales will increase low single-digits in fiscal 2015. We expect adjusted annual EPS will be in the range of $4.45 to $4.65."