Sherwin-Williams Posts Improved Sales for 2010
CLEVELAND - The Sherwin-Williams Co. announced its financial results for the fourth quarter and year ended Dec. 31, 2010. Compared to the same periods in 2009, consolidated net sales increased $296.8 million, or 18.6 percent, to $1.90 billion in the quarter and $682.2 million, or 9.6 percent, to $7.78 billion in the year. The increase in sales is due primarily to higher paint sales volume, acquisitions and selling price increases. Acquisitions increased consolidated net sales 8.7 percent in the quarter and 3.4 percent in the year. Currency translation rate changes increased consolidated net sales 0.4 percent in the quarter and 1.2 percent in the year.
Net sales in the Paint Stores Group increased 8.6 percent to $999.3 million in the quarter and increased 4.1 percent to $4.38 billion in the year, due primarily to selling price increases and improving domestic architectural paint sales to residential repaint contractors and DIY customers. Net sales from stores open for more than 12 calendar months increased 8.6 percent in the quarter and 3.8 percent in 12 months over last year’s comparable periods. Paint Stores Group segment profit increased to $134.8 million in the quarter from $119.9 million last year and increased to $619.6 million in the year from $600.2 million last year. Segment profit in the quarter and year increased due primarily to selling price increases, reduced asset impairment charges, and paint sales volume gains that were partially offset by continuing raw material cost increases and increases in selling, general, and administrative expenses.
Segment profit as a percent to net sales increased in the quarter to 13.5 percent from 13 percent last year and decreased in the year to 14.1 percent from 14.3 percent in 2009. Asset impairment charges were $0.1 million in the fourth quarter and year 2010 compared to $11.0 million in the fourth quarter and year 2009.
Net sales of the Consumer Group increased 6.2 percent to $255.0 million in the quarter and 5.9 percent to $1.30 billion in the year due primarily to improving demand at some of the segment’s retail, industrial and institutional customers. Segment profit increased to $26.1 million in the quarter from $4.6 million last year and increased to $204.0 million in the year from $157.4 million last year. Segment profit increased in the quarter and year due primarily to cost savings realized from prior-year site rationalizations, the disposition of closed manufacturing facilities in the fourth quarter 2010, sales increases, and a reduction in selling, general, and administrative expenses partially offset by continuing raw material cost increases. Segment profit in the quarter increased as a percent to net external sales to 10.2 percent from 1.9 percent last year and increased in the year to 15.7 percent from 12.8 percent in 2009.
The Global Finishes Group’s net sales stated in U.S. dollars increased 46.4 percent to $640.1 million in the quarter due primarily to acquisitions, higher paint sales volume and selling price increases. Net sales increased 26.5 percent to $2.09 billion in the year due primarily to acquisitions, higher paint sales volume and favorable currency translation rate changes. In the quarter and 12 months, acquisitions increased net sales in U.S. dollars by 31.8 percent and 14.8 percent, respectively, and currency translation rate changes increased net sales by 1.1 percent and 4.5 percent, respectively. Stated in U.S. dollars, segment profit in the quarter increased to $28.8 million from a loss of $1.1 million last year due primarily to reduced asset impairment charges, increased paint sales volume, and selling price increases, partially offset by dilution from acquisitions. Segment profit increased in the year to $123.7 million from $65.0 million last year due primarily to increased paint sales volume, a reduction in asset impairment charges and favorable currency rate changes, partially offset by dilution from acquisitions.
Net sales in the Paint Stores Group increased 8.6 percent to $999.3 million in the quarter and increased 4.1 percent to $4.38 billion in the year, due primarily to selling price increases and improving domestic architectural paint sales to residential repaint contractors and DIY customers. Net sales from stores open for more than 12 calendar months increased 8.6 percent in the quarter and 3.8 percent in 12 months over last year’s comparable periods. Paint Stores Group segment profit increased to $134.8 million in the quarter from $119.9 million last year and increased to $619.6 million in the year from $600.2 million last year. Segment profit in the quarter and year increased due primarily to selling price increases, reduced asset impairment charges, and paint sales volume gains that were partially offset by continuing raw material cost increases and increases in selling, general, and administrative expenses.
Segment profit as a percent to net sales increased in the quarter to 13.5 percent from 13 percent last year and decreased in the year to 14.1 percent from 14.3 percent in 2009. Asset impairment charges were $0.1 million in the fourth quarter and year 2010 compared to $11.0 million in the fourth quarter and year 2009.
Net sales of the Consumer Group increased 6.2 percent to $255.0 million in the quarter and 5.9 percent to $1.30 billion in the year due primarily to improving demand at some of the segment’s retail, industrial and institutional customers. Segment profit increased to $26.1 million in the quarter from $4.6 million last year and increased to $204.0 million in the year from $157.4 million last year. Segment profit increased in the quarter and year due primarily to cost savings realized from prior-year site rationalizations, the disposition of closed manufacturing facilities in the fourth quarter 2010, sales increases, and a reduction in selling, general, and administrative expenses partially offset by continuing raw material cost increases. Segment profit in the quarter increased as a percent to net external sales to 10.2 percent from 1.9 percent last year and increased in the year to 15.7 percent from 12.8 percent in 2009.
The Global Finishes Group’s net sales stated in U.S. dollars increased 46.4 percent to $640.1 million in the quarter due primarily to acquisitions, higher paint sales volume and selling price increases. Net sales increased 26.5 percent to $2.09 billion in the year due primarily to acquisitions, higher paint sales volume and favorable currency translation rate changes. In the quarter and 12 months, acquisitions increased net sales in U.S. dollars by 31.8 percent and 14.8 percent, respectively, and currency translation rate changes increased net sales by 1.1 percent and 4.5 percent, respectively. Stated in U.S. dollars, segment profit in the quarter increased to $28.8 million from a loss of $1.1 million last year due primarily to reduced asset impairment charges, increased paint sales volume, and selling price increases, partially offset by dilution from acquisitions. Segment profit increased in the year to $123.7 million from $65.0 million last year due primarily to increased paint sales volume, a reduction in asset impairment charges and favorable currency rate changes, partially offset by dilution from acquisitions.
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