Exhibit 99.1

FOR IMMEDIATE RELEASE



VALSPAR REPORTS FOURTH QUARTER AND

FULL YEAR RESULTS



MINNEAPOLIS, November 20, 2006 The Valspar Corporation (NYSEVAL), a leading global coatings company, today reported record sales and earnings for the fourth quarter and fiscal year ended October 27, 2006. Reported net income for the fourth quarter increased 2% to $52,141,000 or $0.51 per diluted share from $50,966,000 or $0.50 per diluted share last year. This years results include expenses of $0.01 per diluted share for manufacturing rationalization and $0.02 per diluted share for stock based compensation, offset by favorable tax adjustments of $0.03 per diluted share. Last years results for the fourth quarter included $0.04 per diluted share of favorable adjustments. Sales for the fourth quarter increased 8.1% to $784,105,000 compared to $725,387,000 a year ago.



Reported net income for the full year increased 18.7% to $175,252,000 from $147,618,000 last year and earnings per diluted share increased 20.4% to $1.71 from $1.42 last year. This years results include expenses of $0.04 per diluted share for manufacturing rationalization and $0.05 per diluted share for stock based compensation, partially offset by favorable tax adjustments of $0.07 per diluted share. Last years results included favorable net adjustments of $0.04 per diluted share. Sales for the year increased 9.7% to $2,978,062,000 compared to $2,713,950,000 in fiscal 2005.



Commenting on this years results and the outlook for 2007, William L. Mansfield, President and Chief Executive Officer, said We are very pleased with our progress in 2006. We made three strategic investments that will fuel our growth: We acquired an 80% interest in Huarun Paints in China; we improved the productivity of our global manufacturing base with the completion of our manufacturing rationalization plan and we strengthened our consumer paint brands. In the face of major raw material cost increases over the past two years, we continued to restore the profitability of our business. In addition, our increased cash flow from operations combined with $103 million of additional debt enabled us to fund $365 million of acquisitions and capital investments and $60 million of dividends and stock repurchases. We are cautiously optimistic on the outlook for next year. Based on the current outlook for
Valspars business, our plans to continue investing in Valspars consumer paint brands and our expectations for our recent acquisitions, we expect another record year with fiscal 2007 earnings per share in the range of $1.80 to $1.90.



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, November 20that 10:00 AM CST. The call can be heard live over the
Internet at Valspars website at http://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 3:15 PM, using access code 849068.









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.



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THE VALSPAR CORPORATION

COMPARATIVE CONSOLIDATED EARNINGS

For the Quarters Ended October 27, 2006 and October 28, 2005



4th Quarter
        
        
        Year-To-Date(Dollars in thousands, except per share amounts)
        
        
        
        (Unaudited)
        
        
        (Unaudited)2006
        
        
        2005
        
        
        2006
        
        
        2005Net Sales
        
        
        $
        784,105
        
        $
        725,387
        
        $
        2,978,062
        
        $
        2,713,950Cost of Sales
        
        
        
        537,442
        
        
        504,865
        
        
        2,072,157
        
        
        1,928,352Operating Expenses
        
        
        
        159,193
        
        
        132,282
        
        
        598,468
        
        
        514,735Income From Operations
        
        
        
        87,470
        
        
        88,240
        
        
        307,437
        
        
        270,863Interest Expense
        
        
        
        13,599
        
        
        11,527
        
        
        46,206
        
        
        44,522Other (Income) Expense, Net
        
        
        
        1,149
        
        
        788
        
        
        3,799
        
        
        621Income Before Income Taxes
        
        
        
        72,722
        
        
        75,925
        
        
        257,432
        
        
        225,720Income Taxes
        
        
        
        20,581
        
        
        24,959
        
        
        82,180
        
        
        78,102Net Income
        
        
        $
        52,141
        
        $
        50,966
        
        $
        175,252
        
        $
        147,618Net Income per Common Share-basic
        
        
        $
        0.51
        
        $
        0.51
        
        $
        1.73
        
        $
        1.45Net Income per Common Share-diluted
        
        
        $
        0.51
        
        $
        0.50
        
        $
        1.71
        
        $
        1.42Average Number of Shares O/S-basic
        
        
        
        101,324,329
        
        
        100,875,379
        
        
        101,152,608
        
        
        101,900,764Average Number of Shares O/S-diluted
        
        
        
        102,908,125
        
        
        102,918,203
        
        
        102,726,332
        
        
        104,149,564




THE VALSPAR CORPORATION

CONSOLIDATED BALANCE SHEETS



October 27,
        
        
        October 28,(Dollars in thousands)
        
        
        
        2006
        
        
        2005AssetsCurrent Assets:Cash and Cash Equivalents
        
        
        $
        88,238
        
        $
        52,845Accounts Receivable, Net
        
        
        
        475,736
        
        
        462,396Inventories
        
        
        
        281,817
        
        
        230,640Other
        
        
        
        121,332
        
        
        117,998Total Current Assets
        
        
        
        967,123
        
        
        863,879Goodwill, Net
        
        
        
        1,336,098
        
        
        1,064,931Other Assets, Net
        
        
        
        425,427
        
        
        375,751Property, Plant & Equipment, Net
        
        
        
        459,605
        
        
        427,822Total Assets
        
        
        $
        3,188,253
        
        $
        2,732,383Liabilities and Stockholders EquityCurrent Liabilities:Notes Payable to Banks
        
        
        $
        489,163
        
        $
        29,281Trade Accounts Payable
        
        
        
        368,159
        
        
        260,070Income Taxes
        
        
        
        38,455
        
        
        58,120Accrued Liabilities
        
        
        
        299,906
        
        
        276,835Total Current Liabilities
        
        
        
        1,195,683
        
        
        624,306Long Term Debt
        
        
        
        350,267
        
        
        706,415Deferred Liabilities
        
        
        
        386,859
        
        
        340,570Mandatorily Redeemable Stock
        
        
        
        18,723
        
        
        0Stockholders Equity
        
        
        
        1,236,721
        
        
        1,061,092Total Liabilities and Stockholders Equity
        
        
        $
        3,188,253
        
        $
        2,732,383






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The Valspar Corporation

Other Financial Data

Dollars in millions, except per share amounts



Quarter 4
        
        YTD2006
        
        2005
        
        2004
        
        2006
        
        2005
        
        2004I. Comparison year over yearEarnings Per ShareDiluted EPS, reported
        
        $
        0.51
        
        $
        0.50
        
        $
        0.38
        
        $
        1.71
        
        $
        1.42
        
        $
        1.35Adjustments Per Share, net of tax:Manufacturing Rationalization, net
        
        $
        0.01
        
        $
        
        
        $
        
        
        $
        0.04
        
        $
        0.02
        
        $
        Stock Based Compensation
        
        $
        0.02
        
        $
        
        
        $
        
        
        $
        0.05
        
        $
        
        
        $
        Favorable settlement of a lawsuit
        
        $
        
        
        $
        0.02
        
        $
        
        
        $
        
        
        $
        0.04
        
        $
        Favorable claims experience FSG
        
        $
        
        
        $
        0.02
        
        $
        0.04
        
        $
        
        
        $
        0.02
        
        $
        0.04Favorable tax adjustments
        
        $
        0.03
        
        $
        
        
        $
        
        
        $
        0.07
        
        $
        
        
        $
        Gross Margin, as a percentage of net sales *Gross Margin, reported
        
        
        31.5
        %
        
        30.4
        %
        
        29.6
        %
        
        30.4
        %
        
        28.9
        %
        
        30.5
        %Gross Margin, adjusted for net cost of manufacturing rationalization
        
        
        31.6
        %
        
        30.5
        %
        
        29.6
        %
        
        30.7
        %
        
        29.1
        %
        
        30.5
        %Operating Expense as a percentage of net sales *Operating Expense, reported
        
        
        20.3
        %
        
        18.2
        %
        
        18.3
        %
        
        20.1
        %
        
        19.0
        %
        
        19.4
        %Operating Expense, adjusted for stock based compensation
        
        
        19.8
        %
        
        18.2
        %
        
        18.3
        %
        
        19.8
        %
        
        19.0
        %
        
        19.4
        %Operating Profit, as a percentage of net salesOperating Profit, reported
        
        
        11.2
        %
        
        12.2
        %
        
        11.3
        %
        
        10.3
        %
        
        10.0
        %
        
        11.1
        %Operating Profit, adjusted for net cost of manufacturingrationalization and stock based compensation
        
        
        11.8
        %
        
        12.3
        %
        
        11.3
        %
        
        10.9
        %
        
        10.1
        %
        
        11.1
        %






Quarter 4
        
        YTDII. Segment Data
        
        2006
        
        2005
        
        2006
        
        2005SalesPaint
        
        $
        255.1
        
        $
        231.8
        
        $
        985.7
        
        $
        869.3Coatings
        
        $
        448.7
        
        $
        424.3
        
        $
        1,683.5
        
        $
        1,573.1All Other less intersegment sales
        
        $
        80.3
        
        $
        69.3
        
        $
        308.9
        
        $
        271.5Total
        
        $
        784.1
        
        $
        725.4
        
        $
        2,978.1
        
        $
        2,713.9Earnings Before Interest and Taxes (EBIT)Paint
        
        $
        32.6
        
        $
        26.2
        
        $
        107.8
        
        $
        89.7Coatings
        
        $
        58.8
        
        $
        60.5
        
        $
        206.3
        
        $
        181.4All Other
        
        $
        (5.1
        )
        $
        0.8
        
        $
        (10.5
        )
        $
        (0.9
        )Total
        
        $
        86.3
        
        $
        87.5
        
        $
        303.6
        
        $
        270.2




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

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