CLEVELAND - The Sherwin-Williams Co. announced its financial results for the third quarter and nine months ended September 30, 2011. Compared to the same periods in 2010, consolidated net sales increased $312.7 million, or 14.4 percent, to $2.48 billion in the quarter and increased $814.5 million, or 13.8 percent, to $6.70 billion in nine months due to selling price increases, acquisitions and strong organic sales growth by the Global Finishes Group. Favorable currency translation rate changes increased consolidated net sales 1.0 percent in the quarter and 1.3 percent in nine months. Acquisitions increased consolidated net sales 4.1 percent in the quarter and 5.8 percent in nine months.
Diluted net income per common share in the quarter increased to $1.71 per share from $1.60 per share in 2010. In nine months, diluted net income per common share increased to $3.98 per share from $3.53 per share last year. The nine-month increase in diluted net income per common share was due primarily to higher sales in the Global Finishes Group, selling price increases and good cost control partially offset by raw material cost increases.
Net sales in the Paint Stores Group increased 10.2 percent to $1.42 billion in the quarter and 7.8 percent to $3.65 billion in nine months. The sales increase in the quarter was due primarily to selling price increases and improving domestic architectural paint sales volume across most segments. In nine months, the sales increase was due primarily to selling price increases. Net sales from stores open for more than 12 calendar months increased 8.2 percent in the quarter and 6.8 percent in nine months over last year’s comparable periods.
Net sales of the Consumer Group increased 3.3 percent to $351.6 million in the quarter due primarily to selling price increases partially offset by the elimination of a portion of a paint program with a large retail customer. Net sales decreased 2 percent to $1.02 billion in nine months. Segment profit decreased to $41.0 million in the quarter from $59.7 million last year and decreased to $143.5 million in nine months from $177.9 million last year due primarily to increasing raw material costs partially offset by selling price increases and reductions in selling, general, and administrative expenses.
The Global Finishes Group’s net sales stated in U.S. dollars increased 31.2 percent to $714.4 million in the quarter and increased 39.3 percent to $2.02 billion in nine months due primarily to acquisitions, selling price increases, higher paint sales volume and favorable currency translation rate changes.
The company acquired 2.64 million shares of its common stock through open-market purchases in the quarter and 4.24 million shares in nine months. The company had remaining authorization on September 30, 2011, to purchase 1.51 million shares. On October 19, 2011, the Board of Directors authorized the company to purchase an additional 20 million shares of the company’s stock for treasury purposes.
Sherwin-Williams' Sales up 14 Percent
October 30, 2011