18th February 2020

SHERWIN-WILLIAMS QUARTERLY REPORT

Sherwin-Williams Co. has reported consolidated net sales of $3.28-billion for its third quarter and $9.07-billion for the nine-month period, driven in part by high paint sales volumes in its Paint Stores Group.

A change in revenue classification related to grossing up third-party service revenue also helped the Cleveland-based paint maker to deliver the 4.0 percent increase in net sales from the same quarter a year ago and 3.9 percent growth in nine months, the company announced in its earnings report, released on October 25.

Net sales in the company's Paint Stores Group increased 6.7 percent to $2.23-billion in the quarter and increased 7.5 percent to $5.95 billion in nine months. Unfavorable currency translation rates decreased consolidated net sales by 0.8 percent in the quarter and 1.6 percent in the nine-month period.

 “Revenue growth on a comparable basis slowed sequentially in the third quarter across most of our reportable segments,” said John G. Morikis, president and chief executive officer. “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.

“Our balance sheet remains flexible and is positioned well for the anticipated Valspar acquisition and other investments in our business.”

The day prior to the earnings report release, the company announced that its board elected a new chief financial officer, effective January 1, 2017. Allen J. Mistysyn will serve as senior vice president-finance and CFO.

The company’s current CFO, Sean Hennessy, will transition to senior vice president-corporate planning, development and administration, where “he will provide support for the Valspar acquisition integration planning process,” according to Sherwin-Williams. The acquisition of Valspar, valued at $11.3-billion, is expected to close by the end of the first quarter of 2017. Sherwin-Williams reported that the combined company would have sales of approximately $15.6-billion, adjusted earnings of $2.8-billion, with approximately 58,000 employees.

www.sherwin-williams.com