Sherwin-Williams revenue rises
Sherwin-Williams (SHW), based in Cleveland, reported Q3 consolidated net sales increased 1.1% in the quarter to $6.12 billion from $6.05 billion in the previous year’s third quarter.
John G. Morikis, chairman and CEO, said, “from a segment perspective, sales growth in Paint Stores Group was led by protective and marine and commercial, with residential repaint and property maintenance also delivering growth. As expected, sales in new residential softened due to slowing completions, though we are confident in continuing share gains.”
Also, he reported, “segment margin expanded, and we opened 16 new paint stores in the quarter. The sales decrease in our Consumer Brands Group was largely the result of the divestiture of the China architectural business and softer demand in North America, as the DIY consumer remained under pressure. Conversely, the Group's sales in Latin America and Europe increased by double digit percentages.”
In the Q3 Paint Stores Group segment, net sales increased 3.6% to $3.5 billion, and profit increased 23.8% to $918 million. The company said this was due primarily to selling price increases, which impacted sales by a low-single digit percentage.
In other Q3 segments, The Consumer Brands Group segment net sales dropped 4% to $855 million. The Performance Coatings Group segment net sales decreased 1% to $1.72 billion.
The Bottom Line: Sherwin-Williams sales for Q3 moved ahead 1% company-wide to over $6.1 billion.
What the CEO said: “Consolidated net sales were within our guidance range, and consolidated gross margin of 47.7% expanded significantly both sequentially and year-over-year driven by pricing discipline and moderating raw material costs,”said Morikis.
Of note: Recently, Sherwin-Williams announced that its board of directors has elected Heidi G. Petz to serve as the company’s next CEO, effective January 1, 2024. Petz, 48, who has served as president and COO of Sherwin-Williams for the last two years, will assume the CEO duties held by John G. Morikis, current chairman and CEO. Petz will continue to serve as president.
Company info: Click HERE to read the Q3 2023 financial report from Sherwin-Williams.
