Sherwin-Williams gets a paint sales volumes boost in Q3
The Sherwin-Williams Company experienced 4.0% growth in sales during the third quarter, largely owing to higher paint sales volumes in the Paint Stores Group.
Net sales rose 4.0% overall to $3.28 billion for the three months ended Sept. 30, which, in addition to being impacted by paint sales, was also buoyed by a change in revenue classification.
Per segment, net sales were up 6.7% in the Paint Stores Group, down 2.1% in the Consumer Group, down 1.1% in the Global Finishes Group, and up 0.4% in the Latin America Coatings Group.
Net income came in at $386.7 million, up from the previous year's $374.5 million.
"Revenue growth on a comparable basis slowed sequentially in the third quarter across most of our reportable segments," said president and CEO John Morikis. "Despite this slowdown, we remain bullish on future demand across most of our end markets, and we continue to invest in areas that will drive growth and productivity in the quarters and years ahead. In the first nine months, we opened 55 net new store locations in the Paint Stores Group. During the quarter, we increased the dividend rate to $.84 from $.67 last year. Our balance sheet remains flexible and is positioned well for the anticipated Valspar acquisition and other investments in our business."
Morikis added that the company expects its Q4 core consolidated net sales to increase by a low single-digit percentage.
The company also announced that it has elected Allen Mistysyn to serve as senior VP finance and CFO, effective January 1, 2017.
Mistysyn has served as Sherwin-Williams' senior VP corporate controller since October 2014 and will take over as CFO for Sean Hennessy. Hennessy will remain on board as senior VP corporate planning, development and administration.
"This appointment is the result of the board's multi-year succession planning process to identify the absolute best candidate to assume leadership of the Company's financial and risk management operations," said Morikis. "Al has served as an important member of our senior leadership team for many years and exemplifies the right combination of financial, strategic and accounting leadership experience to support the company's continued growth and success."