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Valspar provides big Q2 boost for Sherwin-Williams

7/24/2018
It was a banner second quarter for Sherwin-Williams as consolidated net sales increased 27.8% to a record $4.77 billion from second quarter 2017 net sales of $3.73 billion.

For the first six months of 2018, Sherwin-Williams consolidated net sales rose 34.5% to $8.74 billion from sales of $6.49 billion during the first six months of 2017 The addition of Valspar sales was the primary catalyst for the sales increase in the second quarter and first half of the year.

Net sales in Sherwin-Williams’ Americas Group increased 7.7% to $2.63 billion in the quarter and increased 7.2% to $4.71 billion in six months due primarily to higher architectural paint sales volume across most end market segments and selling price increases.

Also, net sales of the Consumer Brands Group increased 45% to $777.7 million in the quarter and increased 66.8% to $1.43 billion in six months due primarily to the inclusion of Valspar sales and selling price increases. Sherwin-Williams acquired rival Valspar in June 2017 in an $11.3 billion deal .The Performance Coatings Group's net sales increased 79.9% to $1.37 billion in the quarter and increased 108.5% to $2.60 billion in 6-month period due to the inclusion of Valspar sales and selling price increases.

Net sales from stores in U.S. and Canada open more than 12 calendar months increased 6.8% in the quarter.

Sherwin-Williams net income for the second quarter grew 19% to $403.6 million from a net income of $319.1 million in the second quarter of 2017. For the six-month period, the company’s net income increased 17% to $653.7 million from $558.3 million during the first half of 2017.

“The company posted record results in net sales, gross profit, and profit before taxes in the second quarter, aided by the Valspar acquisition which continues to build momentum,” said John Morikis, chairman, president, and CEO of Sherwin-Williams.

 
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