MINNEAPOLIS, Feb. 11 /PRNewswire-FirstCall/ -- The Valspar Corporation (NYSE:VAL) today reported its results for the first-quarter ended January 25, 2008.

First-quarter sales totaled $765.1 million, a 10.2 percent increase from the first quarter of 2007. Net income for the first quarter was $24.0 million. Adjusted earnings per share were $0.24 for the quarter, which excludes a non-cash adjustment of $0.03 per share for Huarun minority interest shares. Reported earnings per share were $0.21. In 2007, first-quarter net income was $23.6 million, or $0.23 adjusted earnings per share, which included a $0.01 per share benefit for favorable tax adjustments and excluded a $0.05 per share non-cash adjustment for Huarun minority interest shares.

"Results for the quarter were in line with our expectations," said William L. Mansfield, Valspar president and chief executive officer. "Our international operations, packaging and industrial coatings, and recently acquired businesses are performing well. In the United States, new business and operational discipline are offsetting the impact of a softening economy. We continue to expect Valspar's fiscal 2008 adjusted earnings per share to be in the range of $1.65 to $1.75."

The company also announced today that in December 2007 it acquired Aries Coil Coatings S.A. de C.V., located in Monterrey, Mexico. "Aries builds on Valspar's growing international presence and extends our leading position in coil and packaging coatings in the Americas." said Mansfield. Aries had 2007 sales of approximately $40 million. Valspar expects the acquisition to be slightly accretive to earnings in 2008. Terms of the transaction were not disclosed.

William L. Mansfield and Paul C. Reyelts, executive vice president and chief financial officer, will conduct a conference call for investors at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) today. The call can be heard live over the Internet at Valspar's website at http://www.valsparglobal.com under Investor Relations. Those unable to participate during the live broadcast can access an archive of the call on the Valspar website. A taped delay of the call will also be available from 1:30 p.m. Central Time February 11 through Midnight on February 29 by dialing 1-800-475-6701 from within the U.S. or 320-365-3844 from outside of the U.S., using access code 909442.

The Valspar Corporation (NYSE:VAL) is a global leader in the paint and coatings industry. Since 1806, Valspar has been dedicated to bringing customers the latest innovations, the finest quality and the best customer service in the coatings industry.

For more information, visit http://www.valsparglobal.com.

This press release contains certain "forward-looking" statements. These forward-looking statements are based on management's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company that could cause actual results to differ materially from such statements. These uncertainties and other factors include, but are not limited to, dependence of internal earnings growth on economic conditions and growth in the domestic and international coatings industry; risks related to any future acquisitions, including risks of adverse changes in the results of acquired businesses and the assumption of unforeseen liabilities; risks of disruptions in business resulting from the integration process and higher interest costs resulting from further borrowing for any such acquisitions; our reliance on the efforts of vendors, government agencies, utilities and other third parties to achieve adequate compliance and avoid disruption of our business; risks of disruptions in business resulting from the Company's relationships with customers and suppliers; unusual weather conditions adversely affecting sales; changes in raw materials pricing and availability; delays in passing along cost increases to customers; changes in governmental regulation, including more stringent environmental, health and safety regulations; the nature, cost and outcome of pending and future litigation and other legal proceedings; the outbreak of war and other significant national and international events; and other risks and uncertainties. The foregoing list is not exhaustive, and the Company disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements.

                           THE VALSPAR CORPORATION
                      COMPARATIVE CONSOLIDATED EARNINGS
         For the Quarters Ended January 25, 2008 and January 26, 2007

                                               First Quarter     First Quarter
    (Dollars in thousands, except per           (Unaudited)       (Unaudited)
     share amounts)                                 2008              2007

    Net Sales                                     $765,124          $694,523
    Cost of Sales                                  554,659           495,439
    Operating Expenses                             155,484           147,865
    Income From Operations                          54,981            51,219
    Interest Expense                                15,683            14,691
    Other (Income) Expense, Net                      2,634             2,426
    Income Before Income Taxes                      36,664            34,102
    Income Taxes                                    12,649            10,504
    Net Income                                     $24,015           $23,598
    Mandatorily Redeemable Stock
     Accrual(1)                                     (2,914)           (5,067)
    Net Income Available to Common
     Shareholders                                  $21,101           $18,531
    Average Number of Shares O/S-basic         100,093,680       101,761,769
    Average Number of Shares O/S-diluted       100,940,574       103,544,940
    Net Income per Common Share-basic                $0.21             $0.18
    Net Income per Common Share-diluted              $0.21             $0.18

    (1)  MANDATORILY REDEEMABLE STOCK ACCRUAL REDUCED BASIC AND DILUTED
         NET INCOME PER SHARE $0.03 IN THE FIRST QUARTER OF 2008 AND $0.05 IN
         THE FIRST QUARTER OF 2007.



    NON-GAAP FINANCIAL MEASURES
    In the accompanying press release, management has reported non-GAAP
    financial measures -- "Adjusted Net Income per Common Share - diluted"
    and "Full Year Guidance for Adjusted Net Income per Common Share
    - diluted" -- which exclude a non-cash accrual relating to Mandatorily
    Redeemable Stock in connection with the Company's acquisition of the
    remaining minority interest shares of Huarun Paints Holding Company
    Limited. Management discloses these measures because it believes these
    measures may assist investors in comparing the Company's results
    of operations in the respective periods without regard to the effect on
    the results in the 2008 and 2007 periods of the non-cash accrual relating
    to the Huarun acquisition.

    NON-GAAP RECONCILIATION
    The following is a reconciliation of "Net Income Per Common Share -
    diluted" to "Adjusted Net Income Per Common Share - diluted" for the
    periods presented:



                                                          First Quarter
                                                      2008              2007
    Net Income per Common Share - diluted            $0.21             $0.18
    Mandatorily Redeemable Stock Accrual             $0.03             $0.05
    Adjusted Net Income per Common Share
     - diluted                                       $0.24             $0.23




    The following is a reconciliation of "Forecasted Net Income per Common
    Share - Diluted" to our "Full Year Guidance" for the period presented.


                                                                   Full Year
                                                                      2008
    Forecasted Net Income per Common
     Share - diluted                                             $1.52 - $1.62
    Mandatorily Redeemable Stock Accrual                             $0.13
    Full Year Guidance for Adjusted Net
     Income per Common Share - diluted                           $1.65 - $1.75



                           THE VALSPAR CORPORATION
                         CONSOLIDATED BALANCE SHEETS

                                           January 25, October 26, January 26,
    (Dollars in thousands)                    2008        2007        2007
    Assets                                 (Unaudited)             (Unaudited)
      Current Assets:
      Cash and Cash Equivalents               $84,131     $84,948     $90,924
      Accounts Receivable, Net                513,425     537,890     438,184
      Inventories                             321,867     291,688     304,883
      Other                                   129,891     115,116     120,927
      Total Current Assets                  1,049,314   1,029,642     954,918
      Goodwill, Net                         1,359,270   1,298,951   1,421,524
      Other Assets, Net                       614,249     609,292     437,131
      Property, Plant & Equipment, Net        522,287     514,396     474,333
    Total Assets                           $3,545,120  $3,452,281  $3,287,906

    Liabilities and Stockholders' Equity
      Current Liabilities:
      Notes Payable and Commercial Paper     $302,801    $367,521    $757,520
      Trade Accounts Payable                  375,844     371,437     328,141
      Income Taxes                                -        19,316      31,501
      Accrued Liabilities                     244,968     270,873     226,726
      Total Current Liabilities               923,613   1,029,147   1,343,888
      Long Term Debt                          801,695     648,988     267,053
      Deferred Liabilities                    396,010     356,007     367,226
      Mandatorily Redeemable Stock             40,256      37,342      23,790
      Stockholders' Equity                  1,383,546   1,380,797   1,285,949
    Total Liabilities and Stockholders'
     Equity                                $3,545,120  $3,452,281  $3,287,906



                           The Valspar Corporation
                             Other Financial Data
                Dollars in millions, except per share amounts

                                                            Quarter 1
                                                     2008               2007

    I.  Comparison year over year
        Earnings Per Share
          Diluted EPS, reported                      $0.21              $0.18
          Adjustments Per Share, net of tax:
             Favorable (Unfavorable) tax
              adjustments                              $-               $0.01
             Mandatorily redeemable stock
              accrual                                $0.03              $0.05



                                                            Quarter 1
    II. Segment Data                                 2008               2007
        Sales
          Paint                                     $228.7             $219.7
          Coatings                                  $471.4             $412.3
          All Other less intersegment
           sales                                     $65.0              $62.5
          Total                                     $765.1             $694.5

        Earnings Before Interest and
         Taxes (EBIT) *
          Paint                                      $18.3              $19.6
          Coatings                                   $39.3              $34.6
          All Other                                  $(5.3)             $(5.4)
          Total                                      $52.3              $48.8

    * Certain amounts in prior years' financial statements have been
      reclassified to conform with the 2008 presentation.

Source: The Valspar Corporation