CLEVELAND (AP) - Lower domestic sales and the higher cost of raw materials
caused Sherwin-Williams Co. on Monday to lower its earnings outlook for the
first quarter by more than 20 percent. Its shares fell almost 2 percent.
The maker and seller of paints and home decorating products expects earnings
to range from 56 cents to 61 cents per share. On Jan. 29, its expectation for
the quarter was from 72 cents to 80 cents per share.
Analysts in a Thomson Financial survey had expected 77 cents per share.
The company reported earnings per common share of 83 cents in the first
quarter of 2007.
Sales for the current quarter are expected to show a low single digit
percentage increase over the first quarter of 2007. The previous expectation was
for possibly a slightly higher percentage increase than low single digits.
For the full year, Sherwin-Williams expects earnings of $4.70 to $4.85 per
share. The January expectation for 2008 had been in the range of $5.00 to $5.15
per share.
The Thomson Financial survey expectation was for $4.95 per share.
The company had earnings of $4.70 per share for all of 2007.
Sherwin-Williams is reaffirming its previous sales expectation of a
low-to-mid single digit percentage increase over 2007.
Sherwin-Williams shares dropped 95 cents, or 1.8 percent, to $52.87 in late
trading Monday. That is near the lower end of its 52-week range of $49.98 to
$73.96.
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