CLEVELAND, June 22, 2020 /PRNewswire/ -- The
Sherwin-Williams Company (NYSE: SHW) today increased its net sales
guidance for the second quarter of 2020. The Company now expects
second quarter 2020 consolidated net sales to decrease by a
mid-single-digit percentage compared to the second quarter of 2019.
The Company's prior guidance, issued April
29, 2020, was for second quarter 2020 consolidated net sales
to decrease by a low to mid-teens percentage compared to the second
quarter of 2019.
On a segment basis, second quarter net sales in The Americas
Group are expected to be down by a high-single-digit percentage
compared to the previous guidance of down by a low-double-digit to
mid-teens percentage. Net sales in the Consumer Brands Group are
expected to be significantly above the high end of the previous
guidance of up by a high-single-digit to low-double-digit
percentage. Net sales in the Performance Coatings Group are
expected to be in line with the previous guidance of down by a
high-teens percentage.
"Our employees have performed admirably during this challenging
time to meet our customers' needs," said Chairman and Chief
Executive Officer, John G. Morikis.
"We are raising our second quarter sales guidance given our ability
to capture and serve greater than expected demand in our North
American architectural businesses.
"We are encouraged by the sequential improvement in all three of
our business segments during the second quarter. In The Americas
Group, we rapidly adapted to the pandemic by implementing curbside
pickup in our stores, utilizing our fleet of over 3,000 delivery
vehicles, and leveraging our e-commerce platform. We have gradually
and safely reopened nearly all of our sales floors over the last
month. DIY growth in our stores remains strong, while our
residential repaint and new residential segments have improved at a
faster rate than our property management, new commercial and
protective and marine segments. In the Consumer Brands Group, the
unprecedented demand from most of our retail partners has remained
robust, driven by consumers who are nesting during the pandemic and
focused on DIY projects. In the Performance Coatings Group, demand
has been variable by end market and geography. Packaging remains
our strongest performer, while demand in our coil business has been
choppy following the slower reopening of many commercial
construction projects. Our automotive refinish business remains
under pressure as driving trends have not yet returned to
pre-pandemic levels. Recovery remains sluggish in our general
industrial and industrial wood businesses.
"Although uncertainties in the timing and pace of improvement in
the U.S. and global operating environments continue, we remain
confident in our ability to successfully manage through these
challenging conditions while continuing to invest and execute on
initiatives that will drive our long-term growth."
The Company is scheduled to release second quarter 2020
financial results on July 28, 2020,
at which time it will provide its outlook on third quarter sales
and update its full year sales and earnings per share guidance.
About Sherwin-Williams
Founded in 1866, The Sherwin-Williams Company is a global leader
in the manufacture, development, distribution, and sale of paints,
coatings and related products to professional, industrial,
commercial, and retail customers. Sherwin-Williams manufactures
products under well-known brands such as
Sherwin-Williams®, Valspar®, HGTV
HOME® by Sherwin-Williams, Dutch Boy®,
Krylon®, Minwax®, Thompson's® Water Seal®,
Cabot® and many more. With global headquarters in
Cleveland, Ohio,
Sherwin-Williams® branded products are sold exclusively
through a chain of more than 4,900 company-operated stores and
facilities, while the company's other brands are sold through
leading mass merchandisers, home centers, independent paint
dealers, hardware stores, automotive retailers, and industrial
distributors. The Sherwin-Williams Performance Coatings Group
supplies a broad range of highly-engineered solutions for the
construction, industrial, packaging and transportation markets in
more than 120 countries around the world. Sherwin-Williams shares
are traded on the New York Stock Exchange (symbol: SHW). For more
information, visit www.sherwin.com.
Cautionary Statement Regarding Forward-Looking
Information
This press release contains certain "forward-looking
statements," as defined under U.S. federal securities laws, with
respect to sales and other matters. These statements can be
identified by the use of forward-looking terminology such as
"believe," "expect," "may," "will," "should," "project," "could,"
"plan," "goal," "potential," "seek," "intend" or "anticipate" or
the negative thereof or comparable terminology. These
forward-looking statements are based upon management's current
expectations, estimates, assumptions and beliefs concerning future
events and conditions. Readers are cautioned not to place undue
reliance on any forward-looking statements. Forward-looking
statements are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of the Company
that could cause actual results to differ materially from such
statements and from the Company's historical results and
experience. These risks, uncertainties and other factors include
such things as: finalization of our financial statements for the
quarter ended June 30, 2020; general
business and economic conditions; the Company's ability to
successfully integrate past and future acquisitions into its
existing operations, as well as the performance of the businesses
acquired; strengths of retail and manufacturing economies and the
growth in the coatings industry; changes in the Company's
relationships with customers and suppliers; changes in raw material
availability and pricing; adverse weather conditions or impacts of
climate change, natural disasters and public health crises,
including the COVID-19 pandemic; the duration, severity and scope
of the COVID-19 pandemic and the actions implemented by
international, federal, state and local public health and
governmental authorities to contain and combat the outbreak and
spread of COVID-19, which may exacerbate one or more of the
aforementioned and/or other risks, uncertainties and factors more
fully described in the Company's reports filed with the Securities
and Exchange Commission (SEC); and other risks, uncertainties and
factors described from time to time in the Company's reports filed
with the SEC. Since it is not possible to predict or identify all
of the risks, uncertainties and other factors that may affect
future results, the above list should not be considered a complete
list. Any forward-looking statement speaks only as of the date on
which such statement is made, and the Company undertakes no
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or
otherwise.
Investor Relations
Contacts:
|
Media
Contact:
|
|
|
Jim Jaye
|
Julie
Young
|
Senior Vice
President, Investor Relations
|
Vice President,
Global
|
& Corporate
Communications
|
Corporate
Communications
|
216.515.8682
|
216.515.8849
|
james.r.jaye@sherwin.com
|
corporatemedia@sherwin.com
|
|
|
Eric
Swanson
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Vice President,
Investor Relations
|
|
216.566.2766
|
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eric.r.swanson@sherwin.com
|
|
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SOURCE The Sherwin-Williams Company