Sherwin-Williams reports record sales
Sherwin-Williams (SHW) reported record third quarter increases in net sales.
The Cleveland-based company reported that consolidated net sales increased 17.5% in the quarter to $6.05 billion, compared with $5.15 billion in Q3 of the previous year.
“Our team delivered record net sales results in the third quarter as we continued to focus on serving our customers with innovative solutions,” said John G. Morikis, chairman and CEO.
“Sales grew to $6.05 billion, a 17.5% increase against a softer quarter comparison last year when raw material availability was highly challenged. Consolidated gross margin expanded 110 basis points sequentially and 120 basis points year-over-year to 42.8%,” said the CEO.
In Q3 segments, The Americas Group (TAG) segment sales increased 21.4% to $3.6 billion from $2.9 billion in the previous year’s Q3. The company said net sales in TAG increased due primarily to higher architectural sales volume across all end markets and selling price increases.
TAG segment profit increased due primarily to higher paint sales volume and selling price increases, partially offset by increased raw material costs and higher SG&A costs related to “continued investments in our long-term growth initiatives,” said the firm.
The Performance Coatings segment sales increased 13.7% to $1.74 billion from $1.53 billion in the same quarter last year, due to higher sales in most end markets, primarily attributable to selling price increases, and acquisitions, partially offset by lower sales volume outside of North America.
The Bottom Line: Sherwin-Williams sales for the third quarter moved ahead more than 17% company-wide to over $6 billion.
What the CEO said: “Our margins improved because of pricing actions across all businesses and volume increases in all architectural paint end markets in The Americas Group. We generated strong cash flow in the quarter, which enabled us to continue making strategic long-term investments across the business and pursue strategic, bolt-on acquisitions in the Performance Coatings Group, having closed three acquisitions since the beginning of the third quarter,” said Morikis.
Company info: Click HERE to read the Q3 2022 financial report from Sherwin-Williams.