Paint manufacturer Wattyl Ltd (ASX: WYL)on Wednesday that it has regained profit status this year, revealing that the company garnered an unaudited annual net profit after tax of $5.2 million for the 2010 financial year.

The company said that it has achieved earnings before non-recurring items and before interest and tax (EBIT) of $14.9 million as against the $6.6 million posted in the same corresponding period last year.

Wattyl added that they ended up with $6.9 million as profit after tax before non-recurring items as compared to the zero profit they posted in 2009 while their profit after tax after non-recurring items was $5.2 million as against losses of $1.5 million in the previous year.

The company said that its non-recurring items also covered a payment of $1.3 million made in New Zealand owing to new tax measures imposed on the country but it gave assurance that the modifications implemented would carry minimal effect, if any, on Wattyl's underlying operating profitability.

Wattyl, which is also being eyed for a possible takeover proposal of $142 million by giant US paint company The Valspar Corporation, said that it would release its audited full year financial results on August 24.