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 Releases Third-Quarter Numbers

Wednesday, October 25, 2017

More items for Good Technical Practice

Comment | More

The Sherwin-Williams Company (Cleveland) released its third-quarter earnings on Tuesday (Oct. 24), reporting a continued increase in net sales and record numbers credited to the company’s acquisition of Valspar earlier this year.

Courtesy of Sherwin-Williams / Bright Eye Photography

The Sherwin-Williams Company (Cleveland) released its third-quarter earnings on Tuesday (Oct. 24), reporting a continued increase in net sales and record numbers credited to the company’s acquisition of Valspar earlier this year.

The company says consolidated net sales increased 37.4 percent compared to the same period last year to a record $4.51 billion, and increased 21.3 percent in nine months to a record $11 billion, including Valspar sales since the month of June, which increased consolidated net sales in the quarter and nine months by 32.8 percent and 16.1 percent, respectively.

Earnings Before Interest Taxes Depreciation and Amortization from continuing operations increased 9.6 percent in nine months to $1.7 billion and, the company noted, it increased 4.3 percent without the impact from the Valspar acquisition.

Sherwin also added that the impact of natural disasters reduced sales by approximately $50 million.

“The string of natural disasters impacting Texas, Florida, the Caribbean and Mexico in recent months was unprecedented, and so was the response of the Sherwin-Williams team members in those communities,” said John G. Morikis, Chairman, President and Chief Executive Officer. “Our associates committed countless hours of work toward disaster relief, clean up and customer assistance. Thanks to their efforts, the impact of these events on our business was at the low end of the expectations we communicated on Sept. 28.

“The sales momentum we saw across most of our businesses leading up to the storms was encouraging. Comparable store sales growth in our North American paint stores was running in the high single digits, and the Consumer Brands Group and the Performance Coatings Group were both showing sequential improvement. Unfortunately, the natural disasters disproportionately affected profitability in the quarter as lost sales and gross profit could not be offset by reduced operating expenses.”

Performance by Segment

Architectural paint sales propped up the Americas Group, which saw net sales increase 6.5 percent to $2.54 billion and a segment profit increase by $6.3 million to $525.6 million. Latin America region net sales, stated in U.S. dollars, increased 4.9 percent in the quarter and net sales from stores in U.S. and Canada open for more than 12 calendar months increased 5.2 percent in the quarter. The increases in the segment are attributed to higher paint sales volume and selling price increases.

Sherwin-Williams

The Performance Coatings Group led the numbers with a 150.8 percent increase to $1.24 billion in the quarter again attributed to Valspar sales, higher paint sales volumes and selling price increases. Acquisition costs also impacted this segment profit, which decreased in the quarter to $59.6 million from $68 million.

While the inclusion of Valspar sales boosted the Consumer Brands Group in terms of net sales—a 81.6 percent increase to $723.3 million in the quarter—the impact of acquisition-related costs brought down segment profit—to $70.4 million in the quarter from $87.2 million last year.

The Performance Coatings Group led the numbers with a 150.8 percent increase to $1.24 billion in the quarter again attributed to Valspar sales, higher paint sales volumes and selling price increases. Acquisition costs also impacted this segment profit, which decreased in the quarter to $59.6 million from $68 million.

“As we indicated at our Financial Community Presentation on Oct. 3, the Valspar integration plans and synergy progress is in line with our expectations,” Morikis said. “We remain focused on strengthening the performance of our core businesses and our newly acquired businesses.

“We have implemented appropriate pricing initiatives to offset increasing raw material costs, and continue to focus on volume improvements in all businesses and all regions. Our success in driving improvements in our operating results and implementing integration plans will create a highly differentiated enterprise better equipped to serve paint and coatings customers around the corner and across the globe.”

Looking to the fourth quarter, Morikis said the company anticipates that core net sales will increase a mid-to-high single-digit percentage.

   

Tagged categories: Business matters; Earnings reports; Finance; Sherwin-Williams; Valspar

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.
 

 
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!
 

 
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
 

 
 
 

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