The Valspar Corporation
Minneapolis, Minnesota/USA
www.valsparglobal.com
PUBLIC COMPANY
YEAR ESTABLISHED: 1806
HEADCOUNT: 8,788 ; (2008: 9,341)
COATINGS REVENUES: $2.654 billion ; (2008: $3.168)
TOTAL REVENUES: $2.879 billion ; (2008: $3.482)
NET INCOME: $160 million ; (2008: $150)
R&D BUDGET: $91 million ; (2008: $96)
SEGMENT BREAKDOWN
• Coatings Segment: 55%
• Paints Segment: 37%
• Other Segment: 8%
KEY PEOPLE
William Mansfield, chairman and CEO; Gary Hendrickson,
president and COO; Rolf Engh, executive VP, general counsel
and secretary; Steven L. Erdahl, executive VP; Anthony L.
Blaine, senior VP; Howard Heckes, senior VP; Lori A. Walker,
senior VP and CFO; J.R. Benites, group VP; Brian Falline, goup
VP; Bernard Ouimette, group VP; James Randolph, group VP.
Valspar’s net sales for the year fell 17. 3 percent to $2.879 billion, reflecting the impact of the global recession. Sales in the Paints segment declined 4. 9
percent to $1.072 billion. The Paints segment includes a
wide variety of products such as paints, primers, topcoats
and aerosol spray paints sold primarily through retailers
and distribution networks. It sells branded and other products in the Paints segment, including Valspar, Cabot,
Huarun, DeBeer and House of Kolor. This segment includes
architectural and automotive refinish product lines.The
firm’s North America architectural product line posted
increased sales for the year, while the overall paint market
declined more than 10 percent.
Coatings segment sales were down 22. 9 percent to
$1.582 billion. The Coatings segment includes a broad
range of decorative and protective coatings for metal,
wood and plastic, primarily for sale to original equipment
manufacturing (OEM) customers. Products within the
Coatings segment include primers, top coats, varnishes,
inks, sprays, stains, fillers and other coatings used by
customers in a wide range of manufacturing industries,
including building products, appliances, furniture, transportation, agricultural and construction equipment,
metal packaging and metal fabrication. Valspar utilizes a
wide variety of coatings technologies to meet its customers’ coatings requirements, including electrodeposition, powder, solvent−based, waterborne and UV
light−cured coatings. This segment includes the packaging product line and three industrial product lines: coil,
general industrial and wood. According to the company,
the performance of its global packaging product line
helped to mitigate the impact of lower revenues in its
industrial product lines.
Net income in 2009 totaled $160.2 million, up $9.4 million from $150.8 million in 2008. The company said these
positive results were due to an improved cost-price ratio,
higher efficiency in its operations from restructuring and
productivity actions, and good control of expenses.
In 2009, Valspar expanded its global automotive color
operations by opening a color technology center in Shunde,
China. Establishing a color technology center in this loca-
tion enables Valspar to offer more service options to its
automotive customers in Asia Pacific and Australia. The
center is designed to increase the quantity of available col-
ors for automotive customers while at the same time ensur-
ing that common technology, methods and procedures are
being practiced. The center plans to develop 6,000 colors
the first year with plans to grow to a capacity of 9,000 col-
ors per year. The center includes employees skilled as col-
orists, sprayers and color information experts. The new
color technology center will also support global color devel-
opment projects for Valspar’s automotive refinish brands
including De Beer and Valspar Refinish.
Supporting Habitat for Humanity
During 2009, The Valspar Corporation Foundation extended its
long-standing relationship with Habitat for Humanity International
with a multi-year commitment totaling more than $20 million in
cash and paint donations. The Valspar Foundation will provide paint
to Habitat affiliates across the U.S. and financial support to build
Habitat’s A Brush With Kindness program, an effort that assists
families in need, into a nationwide program. The Valspar Foundation
and Habitat for Humanity International launched their national partnership in 2002. With this extended commitment, The Valspar
Foundation’s paint and cash partnership with Habitat for Humanity
International will reach nearly $40 million by 2012. Valspar makes
its highest quality paint available to all Habitat affiliates in the United
States and works with them in Brazil, China, South Africa, Thailand
and Vietnam.
