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Profits soar at Sherwin-Williams

1/30/2020
The Sherwin-Williams Company reported fourth quarter 2019 net sales rose 1.2% to $4.11 billion from fourth quarter 2018 sales of $4.06 billion.

Net sales for 2019 increased 2.1% to $17.9 billion – a company record – from 2018 net sales of $17.5 billion.

Sherwin-Williams reported a net income of $248.6 million for the quarter, more than doubling a net income of $101 million for the same period last year. For the full year, the Cleveland, Ohio-based company’s net income increased 39% to $1.154 billion from earnings of $1.108 billion in 2018.

Net sales in the Americas Group increased 4.8% to $2.36 billion for the quarter due primarily to higher paint sales volume across most end market segments. Group sales for the year rose 5.7% to $10.17 billion for the year due primarily to higher paint sales across most end market segments and selling price increases, the company said.

Net sales from stores in U.S. and Canada open for more than twelve calendar months increased 5.3% in the year and 4.6% in the quarter over last year's comparable periods.

Net sales in the Consumer Brands Group increased 0.9% to $539.4 million due primarily to selling price increases and higher volume sales to some of the group's retail customers. But Consumer Brands Group sales fell 2.3% to $2.68 billion for the year due to the divestiture of the Guardsman insurance business and lower sales outside of North America in some end markets, partially offset by selling price increases and higher volume sales to some of the group's retail customers.

In the Americas Group, Sherwin-Williams added 31 new locations during the fourth quarter and 62 locations during all of the fiscal year. Total stores at the end of the fourth quarter stood at 4,758 compared to 4,696 at the end of the same period a year ago.

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The Bottom Line: Sherwin-Williams reports big profits for Q4 and 2019 as sales edge upward.

What the CEO said: “SherwinWilliams delivered record results in 2019, driven by above-market growth in our North American paint stores and margin improvement in all of our segments,” said John Morikis, chairman and CEO of Sherwin-Williams. “Our global team delivered significant accomplishments in each of our operating segments. In The Americas Group, we reached the milestone of more than $10 billion in annual sales. In the Consumer Brands Group, we completed a very successful first full year of our exclusive partnership with Lowes. And in the Performance Coatings Group, we continued to execute on integration efforts that we expect will accelerate growth and margin expansion over the long term.”

Company info: The full fourth quarter 2019 earnings report from Sherwin-Williams can be read here.
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