The Sherwin-Williams Company Reports 2021 First Quarter Financial Results

Ein Geschäft von Sherwin-Williams. © RiverNorthPhotography / iStock Unreleased / Getty Images

PR Newswire

CLEVELAND, April 27, 2021

CLEVELAND, April 27, 2021 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) announced its financial results for the first quarter ended March 31, 2021. All comparisons are to the first quarter of the prior year, unless otherwise noted.

SUMMARY

Consolidated net sales increased 12.3% to $4.66 billion

Net sales from stores in U.S. and Canada open more than twelve calendar months increased 8.2%

Diluted net income per share increased to $1.51 per share

Adjusted diluted net income per share increased 51.5% to $2.06 per share

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased to $848.7 million, or 18.2% of sales
Net operating cash increased 256% to $195.7 million
Completed a three-for-one stock split to improve accessibility to a broader base of investors
The Company anticipates FY21 diluted net income per share in the range of $7.66 to $7.93 per share, including a loss of $0.34 per share from a divestiture and acquisition-related amortization expense of $0.80 per share

CEO REMARKS

"I am proud of our team's strong start to the year, as all three of our segments delivered strong top-line growth and profit expansion," said Chairman, President and Chief Executive Officer, John G. Morikis. "Our sales growth was driven by strong architectural paint demand, improving demand in the industrial end markets served, and pricing actions to offset raw material cost increases. We leveraged this strong sales growth to solid margin expansion across all of our businesses. In the quarter, we delivered 12.3% sales growth, 51.5% adjusted EPS growth, and 320 basis points of adjusted EBITDA margin expansion. We continued to generate strong cash, which allowed us to invest in long-term strategic growth initiatives, repurchase 3.3 million shares in the first quarter, and open 12 new stores in the U.S. and Canada. We also completed the previously announced divestiture of our Wattyl business in Australia and New Zealand.

"In The Americas Group, our residential repaint, new residential and DIY businesses grew sales by double-digits, while our new commercial business continued its rebound growing sales low-single-digits. Strength in DIY end markets continued in our Consumer Brands Group, as sales were up double-digits across all regions. In Performance Coatings Group, our industrial wood and general industrial businesses grew by double-digits, while our packaging and coil businesses grew high-single-digits. Our automotive refinish business grew mid-single-digits."

FIRST QUARTER CONSOLIDATED RESULTS

ARIVA.DE Börsen-Geflüster

Kurse

Sherwin-Williams Company

302,36 $

0,00%

	Three Months Ended March 31,
	2021			2020			$ Change		% Change
Net sales	$	4,656.0		$	4,146.7		$	509.3	12.3	%
Income before income taxes	509.0			392.3			116.7		29.7	%
As a % of sales	10.9		%	9.5		%
Net income per share - diluted	$	1.51		$	1.15		$	0.36	31.3	%
Adjusted net income per share - diluted	$	2.06		$	1.36		$	0.70	51.5	%

Consolidated net sales increased primarily due to higher product sales volume in each of our three segments. Income before income taxes increased primarily due to higher sales volumes, partially offset by increased raw material costs across all three segments.

Diluted net income per share included a $0.34 per share loss from the divestiture of the Wattyl business, an Australian and New Zealand manufacturer and seller of architectural and protective paint and coatings, and a charge of $0.21 per share for acquisition-related amortization expense.

FIRST QUARTER SEGMENT RESULTS

The Americas Group ("TAG")

	Three Months Ended March 31,
	2021			2020			$ Change		% Change
Net sales	$	2,503.1		$	2,305.5		$	197.6	8.6	%
Same-store sales ⁽¹⁾	8.2		%	7.4		%
Segment profit	$	480.0		$	388.3		$	91.7	23.6	%
Reported segment margin	19.2		%	16.8		%


⁽¹⁾	Same-store sales represents net sales from stores in U.S. and Canada open more than twelve calendar months.

Net sales in TAG increased due primarily to higher residential repaint, new residential and DIY paint sales, and selling price increases. TAG segment profit increased due primarily to higher paint sales volume, partially offset by increased raw material costs.

Consumer Brands Group ("CBG")

Three Months Ended March 31,

2021

2020

$ Change

% Change

Net sales

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