The world economy is in a worse economic crisis since the Great Depression if not greater than that and many analysts say that this is just the beginning , 2009 will see the wrath of it and things are not expected to re-group before mid 2010. US has seen a signficant economic meltdown with many industries seeking financial bailouts to save their very existence , and big names falling apart for instance Citigroup, Ford Motors to name a few. Valspar has over the years divesified itself in the global market considerably and said that has been able to make profits besides the economic crisis.
In 2009 Valspar foresees that its revenues in product lines serving OEM industrial markets which are about 40 percent of the company, will come under increasing pressure . However, they expect that a balance would be somehow made through revenue from other product lines which represents about 60 percent of the company’s revenues and include Packaging product line and Paints segment, which are expected to perform well since it has been consistent performer both in the US and globally. Valspar’s Huarun operations in China are focused on the domestic Chinese market have been performing well and are hoped to do so in 2009.
Valspar intends to continue to investing in their branding platforms in 2009 which will further strengthen its market position. This long-term strategy will generate strong and more consistent returns to shareholders .
Valspar Corp. Our History (n. d) retrieved from <http://www. valsparglobal. com/corp/about/ourhistory. jsp#valspar> Valspar Corp. Income Statement 2008 (n. d) retrieved from <http://moneycentral. msn. com/investor/invsub/results/statemnt. aspx? Symbol=US%3AVAL>