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Sherwin-Williams Releases Q2 Numbers

Wednesday, July 29, 2020

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Global coatings firm The Sherwin-Williams Company announced its financial earnings report for the 2020 second quarter yesterday (July 28).

The company reported that while net sales decreased 5.6% in the quarter to $4.6 billion, diluted net income per share increased to $6.48 per share in the quarter from $5.03. Net operating cash also increased 42% year over year to $1.07 billion, or 12.3% of sales.

The decrease in net sales is attributed to the COVID-19 pandemic, which the company noted was partially offset by higher sales in the Consumer Brands Group.

Financial Report

"My sincere thanks goes to our entire global team for their resilience and determination in bringing solutions to our customers under very challenging circumstances this quarter,” said John G. Morikis, Chairman and CEO of Sherwin.

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

Global coatings firm The Sherwin-Williams Company announced its financial earnings report for the 2020 second quarter yesterday (July 28).

“Consolidated net sales improved sequentially in each month of the quarter, led by unprecedented demand for architectural DIY paint in North America. While sales were down by a mid-single digit percentage overall, favorable customer and product mix, lower input costs and strong spending controls enabled us to deliver significantly improved performance compared to last year's second quarter.”

In The Americas Group, net sales decreased 8.4% to $2.52 billion in the quarter and decreased 1.7% to $4.83 billion in the first six months. Segment profit decreased $12.7 million to $599.7 million in the quarter, but increased $44.5 million to $988 million for the first six months.

Net sales of the Consumer Brands Group increased all around—up 21.8% to $980.2 million in the quarter and up 9.8% to $1.6 billion for the first six months. Profit increased to $237.4 million year over year from $140.7 million.

The Performance Coatings Group, however, saw decreases across the board with a 16.5% dip to $1.1 billion in the quarter and a 9% decrease to $2.32 billion in the first six months. Segment profit also decreased to $97.4 million from $150.3 million year over year.

"In The Americas Group, our teams adjusted quickly to meet customer demand while we temporarily shifted to curbside pickup and delivery, and delivered better than expected sales and profit results with sequential improvement through the quarter,” Morikis said.

“In the Consumer Brands Group, higher volume sales through the Group's North American retail customers resulted in a 21% sales gain and improved segment profit. In the Performance Coatings Group, softening industrial demand and the impact of COVID-19 affected most of the end markets and all of the geographies served.”

Morikis said that while the company expects some demand to improve, it is also expecting that some demand remains light in certain markets for at least the remainder of the year.

"For the full year 2020, we now expect full year consolidated net sales will be approximately flat to last year. Our revised sales guidance continues to reflect uncertainties in the timing and pace of improvement in the U.S. and global environments,” he said.

“Considering our revised sales guidance, we are increasing our diluted net income per share guidance for 2020 to be in the range of $19.21 to $20.71 per share compared to our previous guidance of $16.46 to $18.46 per share and compared to $16.49 per share earned in 2019. Full year 2020 earnings per share guidance includes acquisition-related amortization expense of approximately $2.54 per share. Full year 2019 earnings per share included acquisition-related costs of $3.21 per share and other adjustments of $1.42 per share."

   

Tagged categories: Asia Pacific; Earnings reports; EMEA (Europe, Middle East and Africa); Finance; Good Technical Practice; Latin America; North America; Sherwin-Williams; Z-Continents

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