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Sherwin-Williams Reports Sales Increase

Wednesday, April 24, 2019

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Coatings giant The Sherwin-Williams Company (Cleveland) released its first-quarter financial report for 2019 on Tuesday (April 23), indicating a 1.9 percent—$75.9 million—consolidated sales increase, totaling $4.04 billion, for its first quarter.

The company largely attributes the growth to a new customer program that kicked off last year, as well as high paint sales volume in North American stores and selling price increases.

First-Quarter Financial Report

For The Americas Group, Sherwin-Williams reported a 3.6 percent increase in net sales (totaling $2.15 billion), which can be attributed to higher paint sales volume in North American stores, as well as increases in selling prices. The upswing was partially offset by currency translation rate changes decreasing sales by 1.5 percent. Compared to last year, net sales for stores in the U.S. and Canada that had been open for more than 12 months saw a 3.6 percent increase over this time last year. Segment profit saw a $6.3 million decrease to $331.1 million, partially due to an increase in the cost of raw materials and unfavorable currency translation. Sherwin-Williams also opened 15 new store locations in the Group in this year’s first quarter.

M.O. Stevens, CC BY-SA 3.0, via Wikimedia Commons

Coatings giant The Sherwin-Williams Company (Cleveland) released its first-quarter financial report for 2019 on Tuesday (April 23), indicating a 1.9 percent--$75.9 million—consolidated sales increase, totaling $4.04 billion, for its first quarter. 

Net sales for the Consumer Brands Group decreased 0.3 percent to $654.5 million, which was attributed to “soft non-domestic market conditions,” the divestment of Guardsman furniture protection in 2018’s third quarter and unfavorable currency translation. Segment profit increased to $87.9 million from $74.2 million last year due to selling price increases and lesser impact in purchase accounting. The divestment of Guardsman had a 2.6 percent negative impact on Group net sales for the quarter. Currency translation rate changes also decreased Group net sales by 1.6 percent.

Performance Coating Group's net sales increased 0.2 percent to $1.23 billion, an increase similarly attributed to selling price increases that were partially offset by soft sales outside North America, as well as unfavorable currency translation. These rate changes decreased Group net sales by 3.9 percent. Segment profit increased to $98.7 million from last year's $90.8 million, likewise due to selling price increases and reduced impacts associated with purchase accounting. Currency translation rate changes also put a $3.5 million dent in segment profit for the first quarter.

“We made good progress on our pricing initiatives across all segments during the quarter and effectively managed SG&A spending, but volumes fell short of expectations due to a slower start to the architectural painting season in North America and continued challenging conditions in many end markets outside North America,” said John G. Morikis, Sherwin-Williams’ chairman and CEO.

The Year Ahead

“For the second quarter, we anticipate our consolidated net sales will increase two to five percent compared to last year's second quarter,” said Morikis.

“As a reminder, second quarter revenue comparisons to 2018 in The Americas Group and the Performance Coatings Group are the most challenging of the year, and Consumer Brands Group faces comparisons to early load in volume from the Lowes program and the divested Guardsman business.”

Morikis went on to add that for the full year 2019, Sherwin-Williams expects consolidated net sales will increase 4 to 7 percent in comparison to 2018’s results.

   

Tagged categories: AF; AS; Asia Pacific; Coatings manufacturers; Earnings reports; EMEA (Europe, Middle East and Africa); EU; Finance; Latin America; NA; North America; OC; Paint and Coating Sales; Program/Project Management; SA; Sherwin-Williams

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