Coatings Industry News

Main News Page

Sherwin-Williams Reports 2020 Q3 Increases

Friday, October 30, 2020

Comment | More

Global coatings firm The Sherwin-Williams Company announced its financial earnings report for the 2020 third quarter on Wednesday (Oct. 27).

The company reported a year-over-year net sales increase of 5.2% to $5.12 billion. Diluted net income per share; earnings before interest, taxes, depreciation and amortization; and net operating cash also all increased.

The company says that the increase in the quarter was primarily due to higher sales in most of the Consumer Brand Group in all regions as well as continued strong sales in residential and DIY markets in the Americas Group and a return to growth in the Performance Coatings Group.

Financial Report

"Continued and unprecedented strength in our DIY business, solid demand across our residential repaint and new residential segments, and improving demand in our industrial coatings businesses and regions drove our strong third quarter results," said Chairman and Chief Executive Officer, John G. Morikis.

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 third quarter on Wednesday (Oct. 27).

"I am extremely proud of our 61,000 employees, who continue to demonstrate resiliency and determination while providing our customers with differentiated solutions. Improving sales, coupled with favorable customer and product mix, lower input costs and ongoing continuous improvement efforts, drove strong double-digit growth in EBITDA and diluted net income per share.

In the Americas Group, net sales increased 2.8% to $2.98 billion in the quarter, which was primarily due to higher residential repaint, DIY and new residential paint sales in the U.S. and Canada, partially offsetting the impacts of the COVID-19 pandemic.  Segment profit increased $83.8 million to $747.4 million in the quarter.

In the Consumer Brands Group, net sales increased 23.5% to $838.1 million in the quarter, which the company attributes to higher volume sales to most of the group’s retail customers in all regions. Segment profit increased to $198.3 million in the quarter from $114.9 million last year.

The Performance Coatings Group also increased marginally with a 1.2% bump to $1.31 billion in the quarter (though it decrease 5.6% to $3.62 billion for the first nine months year over year). The modest increase was due to improving demand in most business and regions, the company said, led by the Packaging and Industrial Wood divisions. Segment profit increased in the third quarter to $155.3 million from $137.5 million.

"In The Americas Group, our residential repaint, DIY and new residential market segments delivered strong year-over-year growth, while our other market segments improved on a sequential basis,” Morikis said.

“Growth remained strongest in exterior paint while interior paint continued to improve faster than expected. In Consumer Brands Group, strong DIY demand from our North American retail partners throughout the quarter drove our performance. In Performance Coatings Group, our Packaging division remained our best performer, while our Coil, Automotive Refinish and Industrial Wood businesses returned to growth. Recovery in our General Industrial business remains variable by geography, with Asia and Europe recovering at a faster pace than North America."

In all the company generated $2.56 billion in net operating cash during the first nine months of the year, a 54% increase year over year.

"For the fourth quarter, we anticipate our consolidated net sales will increase by 3% to 7% compared to last year's fourth quarter. For the full year 2020, we expect our consolidated net sales will increase by a low single digit percentage compared to the full year 2019,” Morikis said.

“Based on sales at these levels, we are increasing our full year 2020 diluted net income per share guidance to be in the range of $21.49 to $21.79 per share compared to $16.49 per share earned in 2019. Our updated full year 2020 adjusted diluted net income per share guidance of $24.00 to $24.30 per share, excluding $2.51 of acquisition-related amortization expense, compares to $21.12 per share for full year 2019, excluding acquisition-related costs of $3.21 per share and other adjustments of $1.42 per share."   


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

Comment Join the Conversation:

Sign in to our community to add your comments.

KTA-Tator, Inc. - Corporate Office

Axxiom Manufacturing


Abrasives Inc.



Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL

The Technology Publishing Network

PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About   |   Privacy Policy   |   Terms & Conditions   |   Support   |   Site Map   |   Search   |   Contact Us