Sherwin-Williams sees impact from Valspar in Q2
Sherwin-Williams realized double-digit sales increases in the second quarter, which, for the first time, reflected its acquisition of Valspar on a year-over-year basis.
"It is gratifying to finally report a quarter that includes results from Valspar," said chairman, president and CEO John Morikis. "We are pleased to have completed the acquisition, and I would like to once again welcome our colleagues from Valspar and the tremendous talent they bring to Sherwin-Williams. This acquisition accelerates Sherwin-Williams' global growth strategy and creates the global leader in paints and coatings. The combination of these two companies forms a world class brand portfolio, expanded product range, premier technology and innovation platforms and an extensive global footprint."
Consolidated net sales were up 16.0%, reaching a record $3.74 billion.
Net sales from stores in U.S. and Canada open more than 12 calendar months increased 4.9% in the quarter as well.
Net sales were up 8.7% in The Americas Group, 16.0% in the Consumer Brands Group, and 48.0% in the Performance Coatings Group.
Diluted net income per common share in the quarter decreased to $3.36 per share from $3.99 per share in 2016, however.
"Looking ahead, our focus is on strengthening the performance of our core businesses while completing the integration of the two companies with speed and precision," added Morikis.
"The former will require us to drive stronger architectural paint sell-through across all retail channels and capture raw material cost increases through appropriate pricing initiatives, particularly in our industrial coatings businesses. The latter means implementing the integration plans we have developed over the past 15 months, and recognizing when course correction is required. Our success in these two areas will create a highly differentiated enterprise better equipped to serve paint and coatings customers around the corner and around the globe."
The Valspar acquisition was completed on June 1, 2017, for a total purchase price of $8.9 billion.