Valspar (NYSE: VAL) released its net sales with a disappointing drop of 2% to $1.06 billion in the second quarter from a year earlier, as paint volume fell. The soon-to-be sold paint giant missed Wall Street's expectations as sales fell due to exchange rate and profits fell 11% for the quarter ended April 29.
Adjusted earnings per share in the period are $1.22 which is below analysts' estimates of $1.26 and revenue of $1.12 billion.
Total volume fell 1% as volume rose 2% in the coatings segment while declined 6% in the paints segment.
"Coatings segment performance continues to show the strength of our diversified portfolio, with solid volume growth in the Coil, Wood and Packaging product lines," Valspar Chairman and CEO Gary E. Hendrickson said in a statement.
The Minneapolis-based paint maker announced on March 20 that it has agreed to be bought from behemoth Sherwin-Williams for nearly $11.3 billion. The transaction is expected to close someday next year when the two parties meet the regulatory approvals. The regulatory approvals are mainly subject to shareholders as well as the Federal Trade Commission, which requested for a review earlier in May.
Sherwin-Williams said in March it would acquire Valspar to strengthen its position in the global paints and coatings supplier.
Valspar withdrew its guidance on Tuesday for the year due to the pending merger.