Welcome!

News Feed Item

The Sherwin-Williams Company Reports 2014 First Quarter Financial Results

-- Consolidated net sales increased 9.2% in the quarter to a record $2.37 billion

CLEVELAND, April 17, 2014 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) announced its financial results for the first quarter ended March 31, 2014. Compared to the same period in 2013, consolidated net sales increased $199.4 million, or 9.2%, to $2.37 billion in the quarter due primarily to higher paint sales volume in our Paint Stores Group and acquisitions. Acquisitions increased consolidated net sales 4.5% in the quarter. Unfavorable currency translation rate changes decreased consolidated net sales 1.9% in the quarter.

Diluted net income per common share in the quarter increased to $1.14 per share from $1.11 per share in 2013, including a $.12 per share loss from acquisitions. The increase in first quarter diluted net income per common share was due primarily to improved operating results of the Paint Stores and Global Finishes Groups. Currency translation rate changes decreased diluted net income per common share by $.03 per share in the quarter.

Net sales in the Paint Stores Group increased 16.4% to $1.36 billion in the quarter due primarily to higher architectural paint sales volume across all end market segments and acquisitions. Acquisitions increased net sales 7.2% in the quarter. Net sales from stores open for more than twelve calendar months increased 7.9% in the quarter over last year's comparable period. Paint Stores Group segment profit increased $16.6 million to $146.3 million in the quarter from $129.7 million last year due primarily to higher paint sales volume partially offset by the loss from acquisitions and increases in selling, general and administrative expenses. Acquisitions had an unfavorable impact on segment profit of $16.7 million in the quarter. Segment profit as a percent to net sales decreased in the quarter to 10.8% from 11.1% last year due to the impact of acquisitions.

Net sales of the Consumer Group increased 5.4% to $325.3 million in the quarter due primarily to the impact of acquisitions and the timing of seasonal shipments to some customers. Acquisitions increased net sales 3.9% in the quarter. Segment profit decreased to $51.1 million in the quarter from $54.0 million last year due primarily to higher distribution costs to maintain customer service due to inclement weather and the loss from acquisitions. Acquisitions decreased segment profit $0.6 million in the quarter. As a percent to net external sales, segment profit decreased in the quarter to 15.7% from 17.5% last year.

The Global Finishes Group's net sales stated in U.S. dollars increased 2.2% to $497.6 million in the quarter due primarily to selling price increases partially offset by lower paint sales volume. In addition, unfavorable currency translation rate changes decreased net sales by 1.6% in the quarter. Stated in U.S. dollars, segment profit increased in the quarter to $46.5 million from $33.9 million last year due primarily to improved operating efficiencies and selling price increases. Unfavorable currency translation rate changes reduced segment profit $1.8 million in the quarter. As a percent to net external sales, segment profit was 9.3% in the quarter versus 7.0% last year.

The Latin America Coatings Group's net sales stated in U.S. dollars decreased 10.0% to $182.4 million in the quarter due primarily to unfavorable currency translation rate changes and lower paint sales volume partially offset by selling price increases. Unfavorable currency translation rate changes decreased net sales by 16.5% in the quarter. Stated in U.S. dollars, segment profit decreased in the quarter to $10.0 million from $20.8 million last year due primarily to lower volume sales, increasing raw material costs and unfavorable currency translation rate changes partially offset by selling price increases. Foreign currency translation rate changes decreased segment profit $3.8 million in the quarter. As a percent to net external sales, segment profit decreased in the quarter to 5.5% from 10.3% last year.

The Company acquired 1.30 million shares of its common stock through open market purchases in the quarter. The Company had remaining authorization at March 31, 2014 to purchase 10.85 million shares.

Commenting on the financial results, Christopher M. Connor, Chairman and Chief Executive Officer, said, "We are pleased to report record sales and earnings per share from the continued positive sales volume and strong operating results of our Paint Stores Group and the operating margin improvement of our Global Finishes Group. The Paint Stores Group architectural volume growth was strong across all end market segments. The Comex acquisition performed better than expected in the quarter. Although the impact of harsh weather on domestic sales in the quarter was modest, it did disrupt supply chain operations and service driving up costs in the Consumer Group. Our Global Finishes Group continues to improve its operating margins through improved operating efficiencies. The Latin America Coatings Group despite the continued difficult environment is minimizing the impact on its core operating margins through selling price increases and good cost control.

"We continued to invest in our business by opening seventeen net new locations in the Paint Stores Group. For the year, we expect our Paint Stores Group to open 80 to 90 new stores. Our working capital ratio (accounts receivable plus inventories less accounts payable to sales) at March 31, 2014 was 11.0% compared to 11.7% last year. During the quarter, we continued to buy shares of our stock and we increased the dividend rate to $.55 from $.50 last year. Our balance sheet remains flexible and is positioned well for future acquisitions and other investments in our business.

"For the second quarter, we anticipate our consolidated net sales will increase eight to fourteen percent compared to last year's second quarter. At that anticipated sales level, we estimate diluted net income per common share in the second quarter of 2014 to be in the range of $2.80 to $3.00 per share compared to $2.46 per share earned in the second quarter of 2013. This guidance includes our expectation that the Comex acquisition will increase net sales $125 million to $135 million and reduce diluted net income per common share by approximately $.10 per share in the second quarter. For the full year 2014, we expect consolidated net sales to increase eight to thirteen percent compared to full year 2013. With annual sales at that level, we are reaffirming our guidance that diluted net income per common share for 2014 is expected to be in the range of $8.12 to $8.32 per share compared to $7.26 per share earned in 2013. This annual guidance includes our expectation that the Comex acquisition will increase net sales by a low single digit percentage in the year and negatively impact diluted net income per common share $.45 to $.55 per share in 2014."

The Company will conduct a conference call to discuss its financial results for the first quarter, and its outlook for the second quarter and full year 2014, at 11:00 a.m. EDT on Thursday, April 17, 2014. The conference call will be webcast simultaneously in the listen only mode by Vcall. To listen to the webcast on the Sherwin-Williams website, www.sherwin.com, click on About Us, choose Investor Relations, then select Press Releases and click on the webcast icon following the reference to the April 17th release. The webcast will also be available at Vcall's Investor Calendar website, www.investorcalendar.com. An archived replay of the live webcast will be available at www.sherwin.com beginning approximately two hours after the call ends and will be available until May 7, 2014 at 5:00 p.m. EDT.

Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of coatings and related products to professional, industrial, commercial, and retail customers. The company manufactures products under well-known brands such as Sherwin-Williams®, Dutch Boy®, Krylon®, Minwax®, Thompson's® Water Seal®, and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 4,100 company-operated stores and facilities, while the company's other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors. The Sherwin-Williams Global Finishes Group distributes a wide range of products in more than 115 countries around the world. For more information, visit www.sherwin.com.

This press release contains certain "forward-looking statements", as defined under U.S. federal securities laws, with respect to sales, earnings and other matters. These forward-looking statements are based upon management's current expectations, estimates, assumptions and beliefs concerning future events and conditions. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company, that could cause actual results to differ materially from such statements and from the Company's historical results and experience. These risks, uncertainties and other factors include such things as: general business conditions, strengths of retail and manufacturing economies and the growth in the coatings industry; changes in the Company's relationships with customers and suppliers; changes in raw material availability and pricing; unusual weather conditions; and other risks, uncertainties and factors described from time to time in the Company's reports filed with the Securities and Exchange Commission. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor Relations Contact: 
Bob Wells
Senior Vice President, Corporate Communications and Public Affairs 
Sherwin-Williams 
Direct:  216.566.2244 
[email protected]

Media Contact: 
Mike Conway 
Director, Corporate Communications 
Sherwin-Williams 
Direct:  216.515.4393 
Pager:  216.422.3751 
[email protected]

 

 

The Sherwin-Williams Company and Subsidiaries

Statements of Consolidated Income (Unaudited)










Three Months Ended March 31,

Thousands of dollars, except per share data



2014



2013








Net sales


$

2,366,556


$

2,167,168

Cost of goods sold



1,300,655



1,204,317

Gross profit



1,065,901



962,851

Percent to net sales



45.0%



44.4%

Selling, general and administrative expenses



884,088



778,679

Percent to net sales



37.4%



35.9%

Other general (income) expense - net



(572)



3,947

Interest expense



16,394



15,311

Interest and net investment income



(589)



(749)

Other expense (income) - net



503



(2,721)

Income before income taxes



166,077



168,384

Income taxes



50,620



52,199







Net income


$

115,457


$

116,185








Net income per common share:







Basic


$

1.16


$

1.13








Diluted


$

1.14


$

1.11








Average shares outstanding - basic



98,833,210



101,961,059








Average shares and equivalents outstanding - diluted


100,858,881



104,256,263















 

Additional information regarding the Company's financial condition, operating segment results and other information can be found on the Sherwin-Williams website, www.sherwin.com, by clicking on About Us, choosing Investor Relations, then selecting Press Releases and clicking on the reference to the April 17th release. 

SOURCE The Sherwin-Williams Company

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, will provide economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session will also include a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.