Sherwin-Williams Releases Year-End 2020 Numbers
Global coatings firm The Sherwin-Williams company released its 2020 fourth-quarter and year-end financial results yesterday (Jan. 28), reporting consolidated net sales at a 2.6% increase for the year, and a 9.1% increase for the quarter.
The company attributes these increases to higher sales in most of its Consumer Brands Group’s retail customers across the United State and Europe, with particularly higher sales in residential repaint, DIY and new residential projects.
These sales were “partially offset by the impacts of COVID-19” in other markets, though, such as the Performance Coatings Group.
"We finished the year strong in the fourth quarter driven by 9% U.S. and Canada same store sales growth, continued North American DIY growth and growth in all industrial end markets,” said CEO John G. Morikis.
“My deepest thanks goes to our 61,000 employees who delivered outstanding results in what was an extremely challenging and unpredictable year. For the full year, we delivered record sales, EBITDA and EPS, and we generated over $3.4 billion in net operating cash, which enabled us to return over $2.9 billion to shareholders via dividends and share repurchases. Each of our segments delivered improved segment profit and margin in 2020.”
Net sales in The Americas Group increased 2.1% to $10.38 billion for the year and 9% to $2.58 billion in the quarter, again due primarily to residential and DIY sales in the U.S. and Europe. Profit for the segment increased to $2.29 billion for the year and $558.7 million for the quarter.
In the Consumer Brands Group, net sales also increased 14.1% to $3.05 billion on the year and 13.6% to $612.8 million for the quarter, again due to higher volume sales for much of the North America and Europe retail sector. Segment profit increased to $579.6 million in the year and $60.4 million in the quarter.
Net sales in the Performance Coatings Group, however, decreased 2.5% to $4.92 billion on the year. Sherwin attributes this to softer end market demand mostly because of COVID-19. In the fourth quarter, though, net sales increased 7.3% year over year to $1.3 billion. Segment profit for the year increased to $500.1 million and fourth-quarter segment profit increased to $141.1 million.
"In The Americas Group, our DIY and residential repaint businesses delivered strong double-digit growth in the quarter and new residential grew by high-single-digits,” Morikis said. “In our Consumer Brands Group, strong North American DIY was partially offset by weak results in our Asia business. In Performance Coatings Group, our coil, industrial wood and packaging businesses grew double-digits, while our general industrial business saw strong recovery in the quarter and grew high-single-digits. Our automotive business delivered more modest growth, as miles driven remain depressed.”
In terms of 2021 outlook, Morikis says that the company anticipates net sales to increase in high single digits in Q1 compared to 2020. For the full year, the company expects increases in the mid-to-high single-digit range.
"Moving to our 2021 outlook, we expect North American new residential and residential repaint demand will remain strong. Our commercial end markets will likely remain choppy, and our DIY business will face challenging comparisons. Our industrial businesses have never been better positioned, and we anticipate industrial demand will continue to improve. We'll continue to target growing at a rate that outpaces the market through customer driven solutions, ongoing growth investments and multiple growth opportunities.”