Sales rise, so do costs, at Sherwin-Williams
Cleveland, Ohio-based paint giant Sherwin-Williams Co. reported third-quarter net sales of $4.73 billion. That's up 5.0% from $4.51 billion in the same quarter last year.
The increase in the quarter was due primarily to higher paint sales volume in The Americas and Consumer Brands Groups and selling price increases. Comparable-store sales at Sherwin-Williams stores increased 5.2% in the quarter.
Net income increased 11.8% to $354 million.
John G. Morikis, president and CEO, said the company’s acquisition of Valspar, which was completed in June 2017, has led to progress that didn’t show up in the latest earning release.
"We continue to make great progress on the integration of Sherwin-Williams and Valspar into a faster growing, more profitable enterprise, but our results in the third quarter don't fully reflect that progress,” he said.
The company lowered its earnings expectations, which factored in a drop in shares of SHW on Thursday.
Referring to the company’s recently announced relationship with Lowe’s, the company reported:
“In the quarter, we incurred incremental supply chain costs in an effort to keep pace with load-in demand of a new customer program while supporting what is traditionally our peak sales volume quarter, which reduced third quarter earnings per share by approximately $.16 per share.
Sherwin-Williams brands include Valspar, Dutch Boy, Krylon, Minwax, Thomson’s Water Seal and Cabot.
The increase in the quarter was due primarily to higher paint sales volume in The Americas and Consumer Brands Groups and selling price increases. Comparable-store sales at Sherwin-Williams stores increased 5.2% in the quarter.
Net income increased 11.8% to $354 million.
John G. Morikis, president and CEO, said the company’s acquisition of Valspar, which was completed in June 2017, has led to progress that didn’t show up in the latest earning release.
"We continue to make great progress on the integration of Sherwin-Williams and Valspar into a faster growing, more profitable enterprise, but our results in the third quarter don't fully reflect that progress,” he said.
The company lowered its earnings expectations, which factored in a drop in shares of SHW on Thursday.
Referring to the company’s recently announced relationship with Lowe’s, the company reported:
“In the quarter, we incurred incremental supply chain costs in an effort to keep pace with load-in demand of a new customer program while supporting what is traditionally our peak sales volume quarter, which reduced third quarter earnings per share by approximately $.16 per share.
Sherwin-Williams brands include Valspar, Dutch Boy, Krylon, Minwax, Thomson’s Water Seal and Cabot.