Durability + Design
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

D+D News

Main News Page


Sherwin-Williams’ Q2 Sales, Profit Up

Friday, July 17, 2015

More items for Coatings Technology

Comment | More

CLEVELAND--Sales to the professional market for home repainting and consumer groups in the U.S. continue to drive The Sherwin-Williams Company to gains in sales and earnings.

The company announced Thursday (July 16) that it had net sales gains of 2.9 percent for its second quarter ending June 30 and 3.2 percent in the first six months.

paint stores
Photos: Sherwin-Williams

Paced by the company's giant Paint Stores Group, Sherwin-Williams logged gains in sales and earnings for the second quarter.

The Cleveland-based paint and coatings maker saw an increase in consolidated net sales of $89.1 million to $3.13 billion in the second quarter and $172.9 million to $5.58 billion in the first six months, the company stated in its second-quarter financial report. Currency translation reduced sales by 3 percent in the quarter.

For the second quarter, the company posted earnings of $349.9 million, or $3.70 a share, up from $291.4 million, or $2.94 a share, a year ago.

Paint Stores Ring Up

The boost was mainly attributed to higher paint sales volumes in the Paint Stores Group.

Chairman and CEO Christopher M. Connor said the report was “gratifying,” adding that the Paint Stores Group posted “positive operating results and architectural volume growth across all end market segments.”

Net sales in the Paint Stores Group increased 5.4 percent to $1.98 billion in the quarter and 6.3 percent to $3.45 billion in six months, mainly because of higher architectural paint sales volume across all end market segments.

This was due, in part, to the opening of 22 new stores in the first six months of the year, Connor said.

Net sales from stores open for more than 12 calendar months increased 3.9 percent in the quarter and increased 5 percent in six months over last year’s comparable periods.

Profit jumped $57.5 million to $433.4 million in the quarter from $375.9 million last year. This was attributed to higher paint sales volume.

Consumer Growth

Sherwin-Williams’ Consumer Group net sales increased 13 percent to $490 million in the second quarter and 11 percent to $841.7 million in the first six months.

The increases were attributed to shipments of the new HGTV Home by Sherwin-Williams product to Lowe’s home improvement stores.

The program rollout was completed in all Lowe's stores by May 1 and continued to ramp up to expected volumes throughout the quarter, Connor noted.

Profit jumped $114.2 million in the quarter from $92.5 million last year, due primarily to improved operating efficiencies, Sherwin-Williams reported.

Global Finishes Mixed

The company’s Global Finishes Group net sales decreased 7 percent to $505.8 million in the quarter and decreased 6.4 percent to $975.3 million in six months.

The hit was due to unfavorable currency translation rate changes, which decreased net sales by 7.7 percent in the quarter and 7.3 percent in the first six months.

Global Finishes

Unfavorable currency translation rate changes have impacted the Global Finishes group, which includes protective and marine coatings.

The segment’s profit increased in the quarter to $57.3 million from $54.9 million seen last year due primarily to higher paint sales volume and charges in the second quarter 2014 related to the exit of the company’s business in Venezuela partially offset by unfavorable currency translation rate changes, according to Sherwin-Williams.

Six-month segment profit decreased to $96.2 million from $101.3 million last year due primarily to unfavorable currency translation rate changes.

The segment is comprised of protective and marine, OEM product finishes and automotive finishes.

Latin America Sales Down

Meanwhile, the company saw a double-digit drop in net sales for its Latin America Coatings Group in the second quarter mainly due to unfavorable currency translation rate changes offset by selling price increases.

Net sales decreased 17.2 percent to $150 million in the quarter and dropped 13 percent to $316.3 million in six months.

For the second quarter, segment profit decreased $4.0 million from $5.7 million last year and decreased in six months to $13.5 million from $15.6 million last year. This drop was due primarily to increasing raw material costs and unfavorable currency translation rate changes partially offset by selling price increases, the company reported.

Foreign currency translation rate changes decreased segment profit $2.3 million in the quarter and $5.7 million in six months.

Chris Connor

"Our balance sheet remains flexible and is positioned well for future acquisitions and other investments in our business," said CEO Christopher Connor.

“Our Global Finishes and Latin America Coatings Groups are managing through the negative effects of currency devaluation and weak end market demand in some geographies,” Connor commented.  

Looking Ahead

For the third quarter, the company anticipates consolidated net sales will increase 3 to 5 percent compared to last year's third quarter.

At that anticipated sales level, Sherwin-Williams estimates diluted net income per common share in the third quarter of 2015 to be in the range of $3.75 to $3.90 per share, compared to $3.35 per share earned in the third quarter of 2014.

“For the full year 2015, we expect consolidated net sales to increase 3 to 5 percent compared to full year 2014,” said Connor. “With annual sales at that level, we are updating our guidance that diluted net income per common share for 2015 to be in the range of $10.60 to $11.00 per share compared to $8.78 per share earned in 2014.”

Connor added: “Our balance sheet remains flexible and is positioned well for future acquisitions and other investments in our business.”

   

Tagged categories: Business matters; Coatings manufacturers; Earnings reports; Economy; Finance; Sherwin-Williams

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
Shield Industries, Inc
 
FireGuard® E-84 Intumescent Coating - Shield Industries, Inc
 
Trust the certified protection of the industry’s most innovative intumescent coating FireGuard® E-84 to provide you with the 1 and 2 hour fire ratings you need.
 

 
Keim Mineral Coatings
 
Mineral Silicate Paints + Stains Fuse to Concrete
 
• Forms permanent chemical bonds
• Becomes part of the concrete
• Will never peel
• Looks completely natural
 

 
Novatek Corporation
 
Novatek Portable Air Filtration Systems
 
Air Scrubbers/Negative Air machines for restoration, abatement, dust & odor control, hazardous contaminant removal from job sites to clean rooms and hospitals. Portable, affordable!
 

 
 
 

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

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@durabilityanddesign.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 

© Copyright 2012-2018, Technology Publishing Co., All rights reserved