Valspar 8-K Results of Operations and Financial Condition

Exhibit 99.1

FOR IMMEDIATE RELEASE February 13, 2006

VALSPAR REPORTS FIRST QUARTER EARNINGS

MINNEAPOLIS, MINNESOTA – The Valspar Corporation (NYSE–VAL), a leading coatings manufacturer, today reported net income for the first quarter ended January 27, 2006 of $22,541,000 or $0.22 per diluted share versus net income of $11,698,000 or $0.11 per diluted share for the comparable period last year. This year’s results include expenses of $0.01 per diluted share related to the manufacturing rationalization plan announced in 2005 and $0.01 per diluted share related to expensing of stock based compensation. Sales for the quarter increased 13.0% to $629,765,000, compared to $557,144,000 last year.

Commenting on the first quarter, William L. Mansfield, President and Chief Executive Officer, said, “We are pleased with our first quarter results in light of the challenging raw material environment. Both our Paint and Coatings segments delivered strong sales growth in the quarter with exceptional growth in our Architectural product line due to continued retail sales momentum and favorable weather conditions. Margin improvement reflects significant progress in recovering raw material cost increases experienced over the past two years.”

Commenting on the outlook for the balance of the year, Mr. Mansfield said, “We expect full year sales growth of 9-10%, second quarter earnings in the range of $0.39 to $0.43 per share and full year earnings per share in the range of $1.45 to $1.55. These earnings estimates include expensing stock based compensation and the net cost of manufacturing rationalization.”

For further information, contact Lori A. Walker, Vice President, Treasurer and Controller at Valspar / 612-375-7350.

Note: Valspar will host a conference call on Monday, February 13^th at 10:00 AM CST. The call can be heard live over the Internet at Valspar’s website athttp://www.valspar.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 replay of the call can also be accessed by dialing 1-800-475-6701 in the U.S. or 320-365-3844 outside the U.S. beginning at 1:30 PM, using access code 816746.

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 27, 2006 and January 28, 2005

(Dollars in thousands, except per share amounts)	First Quarter (Unaudited)		First Quarter (Unaudited)
	2006		2005
Net Sales	$	629,765	$	557,144
Cost of Sales		449,289		408,418
Operating Expenses		133,939		118,119
Income From Operations		46,537		30,607
Interest Expense		10,780		10,532
Other Expense/(Income), Net		809		1,506
Income Before Income Taxes		34,948		18,569
Income Taxes		12,407		6,871
Net Income	$	22,541	$	11,698
Net Income Per Common Share-basic	$	0.22	$	0.11
Net Income Per Common Share-diluted	$	0.22	$	0.11
Average Number of Shares O/S-basic		100,797,980		102,880,180
Average Number of Shares O/S-diluted		102,233,523		105,264,870

THE VALSPAR CORPORATION
CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)	January 27, 2006		October 28, 2005		January 28, 2005
Assets	(Unaudited)				(Unaudited)
Current Assets:
Cash and Cash Equivalents	$	51,447	$	52,845	$	46,018
Accounts Receivable, Net		413,924		462,396		425,810
Inventories		250,449		230,640		248,106
Other		118,416		119,323		127,049
Total Current Assets		834,236		865,204		846,983
Goodwill, Net		1,063,090		1,064,931		1,009,870
Other Assets, Net		404,722		403,206		404,514
Property, Plant & Equipment, Net		419,207		427,822		433,834
Total Assets	$	2,721,255	$	2,761,163	$	2,695,201
Liabilities and Stockholders’ Equity
Current Liabilities:
Notes Payable to Banks	$	38,996	$	29,281	$	320,810
Trade Accounts Payable		259,837		260,070		241,131
Income Taxes		37,616		58,120		38,011
Accrued Liabilities		235,272		278,160		224,039
Total Current Liabilities		571,721		625,631		823,991
Long Term Debt		699,783		706,415		465,246
Deferred Liabilities		368,350		368,025		369,208
Stockholders’ Equity		1,081,401		1,061,092		1,036,756
Total Liabilities and Stockholders’ Equity	$	2,721,255	$	2,761,163	$	2,695,201

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

	Quarter 1
	2006			2005			2004
I.    Comparison year over year
Earnings Per Share
Diluted EPS, reported	$	0.22		$	0.11		$	0.17
Adjustments Per Share, net of tax:
Manufacturing Rationalization, net	$	0.01		$	–		$	–
Stock Based Compensation	$	0.01		$	–		$	–
Gross Margin, as a percentage of net sales *
Gross Margin, reported		28.7	%		26.7	%		30.1	%
Gross Margin, adjusted for net cost of manufacturing rationalization		29.0	%		26.7	%		30.1	%
Operating Expense as a percentage of net sales *
Operating Expense, reported		21.3	%		21.2	%		22.1	%
Operating Expense, adjusted for stock based compensation		21.0	%		21.2	%		22.1	%
Operating Profit, as a percentage of net sales
Operating Profit, reported		7.4	%		5.5	%		8.0	%
Operating Profit, adjusted for net cost of manufacturing
rationalization and stock based compensation		8.0	%		5.5	%		8.0	%

	Quarter 1
	2006			2005
II.    Segment Data
Sales
Paint	$	187.7		$	158.6
Coatings	$	381.0		$	340.2
All Other less intersegment sales	$	61.1		$	58.4
Total	$	629.8		$	557.1
Earnings Before Interest and Taxes (EBIT)
Paint	$	8.2		$	8.3
Coatings	$	44.0		$	25.2
All Other	$	(6.5	)	$	(4.4	)
Total	$	45.7		$	29.1

        * Certain amounts in prior years’ financial statements have been reclassified to conform with the 2006 presentation.