Sherwin-Williams Profit Rises 49%
January 28 2016 - 8:55AM
Dow Jones News
By Anne Steele
Sherwin-Williams Co. reported its profit soared 49% in the most
recent quarter as sales jumped in its paint-store and consumer
group segments, though it gave a muted full-year profit
outlook.
The Cleveland-based company has sought to improve its results by
focusing on the U.S. market amid the housing recovery while the
stronger dollar has weighed on demand in some of its international
segments, particularly Latin America.
For the current quarter, Sherwin-Williams anticipates sales will
increase by a low single-digit percentage compared to the first
quarter of 2015. Earnings are estimated in the range of $1.50 to
$1.65 a share. Analysts polled by Thomson Reuters are expecting
$1.62 a share on 3% revenue growth.
For the full year, the company expects sales to increase by a
low single-digit percentage compared to 2015. Earnings for the year
are estimated in the range of $12.20 to $12.40 a share. Analysts
anticipate earnings of $12.75 on 5% revenue growth.
In all for the final quarter of the year, the company posted
earnings of $198 million, or $2.12 a share, up from $132.7 million,
or $1.37 a share, a year ago. Revenue edged up 1.4% to $2.6
billion. Currency translation reduced sales by 3.6% in the
quarter.
The company had guided for earnings of $1.70 to $1.95 a share
with sales rising in the low single digits.
In the latest quarter, paint-store sales grew 5.9% to $1.68
billion on higher architectural paint sales volumes. The consumer
group's sales leapt 13.6% to $314.6 million, while global finishes
sales fell 9.5% to $454.8 million because of currency effects.
Latin America coatings group sales dropped 24% to $158.7
million.
Shares of Sherwin-Williams, which have risen 2.2% over the past
three months, declined 0.9% in premarket trading.
Write to Anne Steele at anne.steele@wsj.com
(END) Dow Jones Newswires
January 28, 2016 08:40 ET (13:40 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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