The Sherwin-Williams Company Reports 2017 Second Quarter Financial Results

Net sales in The Americas Group increased 8.7% to $2.44 billion in the quarter and increased 10.2% to $4.39 billion in six months due primarily to higher architectural paint sales volume across most end market segments, the impact of the change in revenue classification and selling price increases. Latin America region net sales, stated in U.S. dollars, increased 1.2% in the quarter and increased 6.9% in six months over last year's comparable period. Net sales from stores in U.S. and Canada open for more than twelve calendar months, excluding the change in revenue classification, increased 4.9% in the quarter and increased 6.0% in six months over last year's comparable periods. The Americas Group segment profit increased $33.3 million to $532.7 million in the quarter and increased $86.0 million to $837.9 million in six months due primarily to higher paint sales volume and selling price increases partially offset by increased raw material costs. Segment profit as a percent to net sales decreased in the quarter to 21.8% from 22.2% last year. Six months segment profit margin increased to 19.1% from 18.8% last year. Excluding the change in revenue classification, segment profit margin was 22.6% and 19.7% in the quarter and six months, respectively.

Net sales of the Consumer Brands Group increased 16.0% to $536.4 million in the quarter and increased 4.0% to $859.8 million in six months due primarily to the inclusion of Valspar sales for the month of June, partially offset by lower volume sales to most of the Group's retail and commercial customers. Valspar sales increased Group net sales 27.9% and 15.6% in the quarter and six months, respectively. Segment profit decreased to $76.1 million in the quarter from $103.2 million last year and decreased to $132.0 million in six months from $163.0 million last year due primarily to lower organic sales volumes, increasing raw material costs and acquisition-related purchase accounting adjustments to inventory and increased amortization costs totaling $20.5 million in the quarter. The impacts were partially offset by improved operating efficiencies, good expense control and selling price increases. As a percent to net external sales, segment profit decreased in the quarter to 14.2% from 22.3% last year and decreased in six months to 15.4% from 19.7% last year due primarily to higher raw material costs and acquisition-related costs, which reduced segment profit as a percent to sales in the quarter and six months by 3.8% and 2.4%, respectively.

The Performance Coatings Group's net sales stated in U.S. dollars increased 48.0% to $761.1 million in the quarter and increased 26.9% to $1.25 billion in six months due primarily to one month of Valspar sales, higher paint sales volume and selling price increases. Valspar sales contributed 48.8% and 25.6% to Group net sales in the quarter and six months, respectively. Stated in U.S. dollars, segment profit decreased in the quarter to $62.3 million from $70.4 million last year and decreased in six months to $119.5 million from $123.1 million last year due primarily to acquisition-related costs, including purchase accounting adjustments to inventory and increased amortization costs of $38.3 million in the quarter. Currency translation rate changes had a minimal impact on segment profit in the quarter and six months. As a percent to net external sales, segment profit decreased in the quarter to 8.2% from 13.7% last year and decreased in six months to 9.6% from 12.5%. Acquisition-related expenses decreased segment profit as a percent to sales in the quarter and six months by 5.0% and 3.1%, respectively.

The Company made no open market purchases of its common stock in the six months ended June 30, 2017. At June 30, 2017, the Company had cash on hand of $210 million that will be utilized to reduce debt. In the first six months, the Company opened 33 net new store locations in The Americas Group.

Based on total Company borrowings, twelve-month interest expense is projected to be approximately $400 million.  Incremental depreciation and amortization step-up related to Valspar acquisition purchase accounting is projected to be approximately $275 million on an annual basis. Purchase accounting inventory adjustments of $110 million are being amortized over the three months of June, July and August, 2017. The balance sheet reflects preliminary purchase accounting balances and incremental debt of $9.5 billion used to fund the acquisition.

Commenting on the second quarter, John G. Morikis, Chairman, President and Chief Executive Officer, said, "It is gratifying to finally report a quarter that includes results from Valspar. We are pleased to have completed the acquisition, and I would like to once again welcome our colleagues from Valspar and the tremendous talent they bring to Sherwin-Williams. This acquisition accelerates Sherwin-Williams' global growth strategy and creates the global leader in paints and coatings. The combination of these two companies forms a world class brand portfolio, expanded product range, premier technology and innovation platforms and an extensive global footprint."

"Looking ahead, our focus is on strengthening the performance of our core businesses while completing the integration of the two companies with speed and precision. The former will require us to drive stronger architectural paint sell-through across all retail channels and capture raw material cost increases through appropriate pricing initiatives, particularly in our industrial coatings businesses. The latter means implementing the integration plans we have developed over the past 15 months, and recognizing when course correction is required. Our success in these two areas will create a highly differentiated enterprise better equipped to serve paint and coatings customers around the corner and around the globe."

"For the third quarter, we anticipate our Sherwin-Williams' core net sales will increase a low to mid single digit percentage compared to last year's third quarter. In addition, we expect incremental sales from the Valspar acquisition to be approximately $1.0 billion in the third quarter. At that anticipated sales level, we estimate diluted net income per common share in the third quarter of 2017 to be in the range of $3.70 to $4.10 per share, including a $1.10 per share charge from costs associated with the Valspar acquisition, and includes an EPS increase of $.40 to $.60 per share from Valspar operations. The increase from Valspar operations includes acquisition financing expense charge of $.40 per share in the third quarter. Third quarter 2016 earnings were $4.08 per share and included a $.24 per share charge for acquisition-related costs. For the full year 2017, we expect Sherwin-Williams' core net sales to increase by a mid single digit percentage compared to full year 2016. In addition, we expect incremental sales from the Valspar acquisition to be approximately $2.4 billion in 2017. With annual sales at that level, we are updating our guidance for full year 2017 diluted net income per common share to be in the range of $12.30 to $12.70 per share compared to $11.99 per share earned in 2016. Full year 2017 diluted net income per common share guidance includes a $2.50 per share charge from costs associated with the acquisition of Valspar, and includes an EPS increase of $.75 to $.95 per share from Valspar operations. The increase from Valspar operations includes acquisition financing expense charge of $.95 per share for the full year. Full year 2016 earnings per share included $.86 per share charge related to the Valspar acquisition."

The Company will conduct a conference call to discuss its financial results for the second quarter, and its outlook for the third quarter and full year 2017, at 11:00 a.m. EDT on Thursday, July 20, 2017. The conference call will be webcast simultaneously in the listen only mode by Issuer Direct. To listen to the webcast on the Sherwin-Williams website, www.sherwin.com, click on About Us, choose Investor Relations, then select Press Releases and click on the webcast icon following the reference to the July 20th release. The webcast will also be available at Issuer Direct's Investor Calendar website, www.investorcalendar.com. An archived replay of the live webcast will be available at www.sherwin.com beginning approximately two hours after the call ends and will be available until August 9, 2017 at 5:00 p.m. EDT.

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. The company 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 4,100 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.

Regulation G Reconciliation
Management of the Company believes that investors' understanding of the Company's operating performance is enhanced by the disclosure of diluted net income per common share excluding the Valspar acquisition-related costs. This adjusted earnings per share measurement is not in accordance with U.S. generally accepted accounting principles (GAAP). It should not be considered a substitute for earnings per share computed in accordance with U.S. GAAP and may not be comparable to similarly titled measures reported by other companies. The following tables reconcile diluted net income per common share computed in accordance with U.S. GAAP to diluted net income per common share excluding the impact from the Valspar acquisition.

		Three Months				Six Months				Three Months Ended								Year Ended
		Ended				Ended				September 30, 2017								December 31, 2017
		June 30,				June 30,				(guidance)								(guidance)
		2017				2017				Low				High				Low				High
Diluted net income per common share		$	3.36			$	5.90			$	3.70			$	4.10			$	11.86			$	12.26
Charge related to discontinued operations		.44				.44												.44				.44
Diluted net income per common share from continuing operations		3.80				6.34				3.70				4.10				12.30				12.70
Valspar-related costs:
Transaction and integration costs		.30				.38				.10				.10				.60				.60
Purchase accounting amortization expense		.42				.42				1.00				1.00				1.90				1.90
Consolidated excluding Valspar-related costs		4.52				7.14				4.80				5.20				14.80				15.20
Valspar operations income		.29				.29				.80				1.00				1.70				1.90
New debt interest expense		(.19)				(.19)				(.40)				(.40)				(.95)				(.95) Werbung Mehr Nachrichten zur Sherwin-Williams Company Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:32 - PR Newswire Fidelity Emerging Markets Ltd - Monthly Factsheet 10:30 - PR Newswire Fidelity China Special Situations Plc - Monthly Factsheet Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59