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Sherwin-Williams Reports Q1 Sales Increases

Wednesday, April 28, 2021

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Global coatings firm The Sherwin-Williams Company announced its 2021 first-quarter financial results on Tuesday (April 27), highlighting a 12.3% net sales increase year over year to $4.66 billion.

In addition to the net sales increase, adjusted earnings also increased to $848.7 million, and diluted net income per share increased to $1.51 per share.

“I am proud of our team's strong start to the year, as all three of our segments delivered strong top-line growth and profit expansion,” said Chairman, President and Chief Executive Officer, John G. Morikis.

“Our sales growth was driven by strong architectural paint demand, improving demand in the industrial end markets served, and pricing actions to offset raw material cost increases. We leveraged this strong sales growth to solid margin expansion across all of our businesses.  In the quarter, we delivered 12.3% sales growth, 51.5% adjusted EPS growth, and 320 basis points of adjusted EBITDA margin expansion.

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

Global coatings firm The Sherwin-Williams Company announced its 2021 first-quarter financial results on Tuesday, highlighting a 12.3% net sales increase year over year to $4.66 billion.

“We continued to generate strong cash, which allowed us to invest in long-term strategic growth initiatives, repurchase 3.3 million shares in the first quarter, and open 12 new stores in the U.S. and Canada. We also completed the previously announced divestiture of our Wattyl business in Australia and New Zealand.”

Results by Segment

In the Americas Group, net sales increased to $2.5 billion from $2.3 billion in Q1 of last year. The company attributes this to higher residential repaint, new residential and DIY paint sales, as well as selling price increased. Segment profit already increased primarily to higher sales volumes, which were partially offset by increased raw material costs.

“In The Americas Group, our residential repaint, new residential and DIY businesses grew sales by double-digits, while our new commercial business continued its rebound growing sales low-single-digits,” Morikis said.

Net sales in the Consumer Brands Group also increased—from $622 million to $778 million. This was also due primarily to higher volume sales to most of the group's customers and selling price increases.

“Strength in DIY end markets continued in our Consumer Brands Group, as sales were up double-digits across all regions,” Morikis added.

Segment profit also increased primarily due to higher volume sales, continued improvement in international operating margins and good cost control, partially offset by increased raw material costs.

In the Performance Coatings Group, net sales also increased—from $1.2 billion to $1.4 billion, against due to higher sales volumes in most end markets and selling price increases, according to Sherwin.

“In Performance Coatings Group, our industrial wood and general industrial businesses grew by double-digits, while our packaging and coil businesses grew high-single-digits. Our automotive refinish business grew mid-single-digits,” Morikis noted.

Looking ahead, Morikis noted that raw material availability, as well as cost inflation, are cause for concern, but the company has a positive outlook overall.

“Despite the uncertainties, our businesses are extremely well positioned, and we remain confident in our long-term ability to grow faster than the market,” he said. “We look forward to our June 8th Financial Community Presentation, where we will provide an update on full year sales and EPS guidance, business demand trends, raw material dynamics, technology investments, and our robust ESG initiatives.”


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

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