By Angela Chen
Sherwin-Williams Co. raised the bottom of its earnings guidance
for the year but offered a mixed outlook for 2015, as the company
continues its recovery efforts in the struggling paint market.
The Cleveland, Ohio-based paint maker raised the lower end of
its earnings outlook for the year by five cents a share, putting
its range at $8.75 to $8.80, but that is still short of analysts'
call for $8.81 a share.
Sherwin-Williams had previously raised its outlook, which
includes costs tied to its Comex paint stores acquisition, in July
and October.
Investors will be hoping the company follows a similar pattern
next year as it initiated its earnings outlook at $10.65 to $10.85
a share, short of the $10.88 a share projected by analysts polled
by Thomson Reuters.
Sherwin-Williams's revenue guidance was more optimistic,
however, calling for 7% to 11% growth, helped by its new HGTV Home
paint collection. Analysts had called for a 7% increase.
In a slow-growing paint market, Sherwin-Williams, the No. 3
global coatings company, has benefited from acquisitions, which
buoyed its sales growth in the latest quarter.
Though Sherwin-Williams terminated its agreement to buy the
Mexican business of coatings maker Consorcio Comex SA earlier, it
completed an acquisition of Comex's U.S. and Canadian businesses in
September.
It has also been getting a lift from the recovery of the U.S.
housing market and a greater willingness of Americans to remodel
and repaint. Unlike rival PPG Industries Inc., it is focusing on
the American market instead of having its eye on global expansion.
Sherwin says its strategy of selling paint mainly through its own
stores gives it more control over pricing and more contact with
customers.
For the most recently ended quarter, Sherwin-Williams said its
sales rose 11%, driven by higher volume at its paint stores.
Write to Angela Chen at angela.chen@dowjones.com
Access Investor Kit for The Sherwin-Williams Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US8243481061
Subscribe to WSJ: http://online.wsj.com?mod=djnwires