Flat Q1 for Sherwin-Williams
Sherwin-Williams reported first quarter 2019 consolidated net sales of $4.04 billion, up just 1.9% from net sales of $3.96 billion for the same period last year.
The slight sales increase for the quarter was due primarily to a new customer program launched in 2018, higher paint sales volume in North American stores, and selling price increases, the paint manufacturer said. But sales were also partially offset by soft end market demand outside the U.S. and unfavorable currency translation rate changes.
Net sales in The Americas Group increased 3.6% to $2.15 billion in the quarter due primarily to higher paint sales volume across most end markets in North American stores and selling price increases.
Consumer Brands Group net sales decreased 0.3% to $654.5 million in the quarter while the Performance Coatings Group's net sales increased 0.2% to $1.23 billion for the period.
Net sales from stores in U.S. and Canada open more than 12 months increased 3.6% in the quarter. Sherwin-Williams opened 15 net new store locations in the Americas Group in the second quarter.
The company also reported a net income of $245.2 million for the period, down 2% from a net income of $250 million for the period in 2018.
"We made good progress on our pricing initiatives across all segments during the quarter and effectively managed SG&A spending, but volumes fell short of expectations due to a slower start to the architectural painting season in North America and continued challenging conditions in many end markets outside North America,” said John Morikis, chairman and CEO.
Looking ahead, Morikis said that the Cleveland, Ohio-based company expects consolidated second quarter sales to increased 2% to 5%.
The slight sales increase for the quarter was due primarily to a new customer program launched in 2018, higher paint sales volume in North American stores, and selling price increases, the paint manufacturer said. But sales were also partially offset by soft end market demand outside the U.S. and unfavorable currency translation rate changes.
Net sales in The Americas Group increased 3.6% to $2.15 billion in the quarter due primarily to higher paint sales volume across most end markets in North American stores and selling price increases.
Consumer Brands Group net sales decreased 0.3% to $654.5 million in the quarter while the Performance Coatings Group's net sales increased 0.2% to $1.23 billion for the period.
Net sales from stores in U.S. and Canada open more than 12 months increased 3.6% in the quarter. Sherwin-Williams opened 15 net new store locations in the Americas Group in the second quarter.
The company also reported a net income of $245.2 million for the period, down 2% from a net income of $250 million for the period in 2018.
"We made good progress on our pricing initiatives across all segments during the quarter and effectively managed SG&A spending, but volumes fell short of expectations due to a slower start to the architectural painting season in North America and continued challenging conditions in many end markets outside North America,” said John Morikis, chairman and CEO.
Looking ahead, Morikis said that the Cleveland, Ohio-based company expects consolidated second quarter sales to increased 2% to 5%.