Sherwin-Williams Co. cut its earnings outlook for the year and
gave a third-quarter forecast below Wall Street expectations, even
as earnings rose in its latest quarter.
For the year, the paint company said it now projects earnings
per share of $10.60 to $11, down from a prior forecast of $10.90 to
$11.10. For the third quarter, Sherwin-Williams projected earnings
per share of $3.75 to $3.90, below analysts' expectations of
$4.14.
Shares fell 5.3% in light premarket trading.
The Cleveland, Ohio-based company has sought to improve its
results by focusing on the U.S. market, which is in the midst of a
housing recovery.
Overall, the company posted earnings of $349.9 million, or $3.70
a share, up from $291.4 million, or $2.94 a share, a year ago.
Revenue rose 2.9% to $3.13 billion. Currency translation brought
down sales by 3% in the quarter.
The company had forecast $3.70 to $3.90 a share in earnings on
revenue of $3.23 billion to $3.29 billion.
At stores open for more than a year, sales climbed 3.9%.
In the latest quarter, paint-store sales grew 5.4% to $1.98
billion on higher architectural paint sales volumes.
The consumer group's sales grew 13% to $490 million, while
global finishes sales fell 7.1% to $505.8 million, due to currency
effects. Sales in the Latin America coatings group fell 17% to
$150.1 million, also hurt by unfavorable currency effects.
Write to Neil Haggerty at neil.haggerty@wsj.com
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